Highlights of 3Q2023 Quarterly Results

• Recorded EBITDA* positive of Baht 389.1 million from a loss of Baht (601.3) million in the same period last year
• Domestic market grew robustly with market share reaching a peak of 38%**, load factor average was 93% despite seasonally slow travel period
• International market grew to account for 41% of total passengers with an average load factor of 85%. The company adapted its flight management plan for greater efficiency in alignment with travel demand spurred by gradual recovery in the China market.
• Total 4.6 million passengers carried in 3Q2023 with 90% average load factor
• A total of 46 aircraft out of a fleet of 54 were in operation with a high utilisation rate of 12.8 hours per aircraft per day.

BANGKOK, 14 November 2023 - Asia Aviation Plc. (AAV), the sole shareholder of Thai AirAsia Co. Ltd. (TAA), announces its operational results for the third quarter of 2023 (“3Q2023”) with a total revenue of Baht 9,898.7 million, increasing 102 percent year-on-year (YoY), while controlling operational costs effectively. Excluding fuel costs, the company’s cost per unit (CASK ex-fuel***) continued to decrease by 33 percent from the same period last year.

EBITDA for the period was positive at Baht 389.1 million, bouncing from a loss of Baht (601.3) million the previous year. Nonetheless, depreciation of the Thai baht towards the end of the quarter resulted in an unrealised loss from exchange rates of Baht (813.5) million, mostly an accounting loss with no impact on the company’s liquidity. Overall, the company saw a loss in the quarter of Baht (1,694.7) million, significantly improving from a loss of Baht (4,050.2) million in the same period last year.

Mr. Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd. said: “Thai AirAsia continued to perform robustly compared to the same quarter last year despite being significantly impacted by fuel costs, which rose 61 percent YoY and 19 percent QoQ, partly due to a hike in the fuel excise tax for domestic flights. Coupled with the Thai Baht that considerably weakened during the period, these two uncontrollable factors have had direct effects on earnings for the quarter.

“Despite the loss this quarter, I believe the company will experience improved performance in the last quarter when we enter the high travel season. We will be making the domestic market a key focus, where we have a strong capacity and are a market leader while adapting our strategy internationally. The last quarter will also benefit from state policies supporting tourism, such as VISA-Free schemes for visitors from China, Kazakhstan, India and Taiwan, which was rolled out in September, along with more efforts to bolster confidence in Thai tourism. Greater clarity in an appropriate fuel excise tax is also expected soon. These are expected to help boost our performance in the final quarter,” Mr. Santisuk said.

In terms of its targets for 2023, the company remains confident it will carry 20 million passengers for the full year, having flown 13.8 million guests in the first nine months of the year. This is on top of an average load factor of 87 percent, a 90 percent on-time performance rate with 50 aircraft out of its 54 fleet in operation by the year’s end. For 4Q2023, Thai AirAsia will be adjusting its strategy and increasing domestic flights by 20 percent from the previous quarter while adding international routes to Gaya, Guwahati and Ahmedabad in India, and Shantou in China to capitalise on international travel growth opportunities.

The company has also remained committed to its sustainable development plan. Over the first nine months of 2023, Thai AirAsia has reduced carbon emissions from its passenger service through Green Operating flights by 4.37 gCO2/RPK, exceeding the year’s target of 3.00 g. The airline also took part in the “Tiew D, Green D” campaign, in cooperation with Pun Promotion Co., Ltd., supporting the development of creative content production skills through an online platform to promote sustainable tourism. The project created job opportunities for the Koh Klang community in Krabi, a member of the JourneyD program and a model of sustainable tourism for Thai AirAsia.

* Earnings Before Interest, Taxes, Depreciation, and Amortisation

**Data from internal and AOT Plc.

*** Cost per Available Seat Kilometres excluding fuel