Asia Aviation Plc (AAV), the parent firm of low-cost carrier Thai AirAsia (TAA), yesterday posted a 12.5% rise in third-quarter net profit due to higher revenue and lower fuel prices.
Thai AirAsia’s A320 at Don Mueang airport, itsnewhome base. The improved performance in the third quarter reflects TTA’s continual expansion of operations through more frequencies on existing routes, introduction of new routes, especially to China, and enlarging its fleet size. BOONSONG KOSITCHOTETHANA
Net earnings for the period were 108 million baht, or two satang a share, compared to 96 million the same period last year when a different accounting system was applied during the pre-listing period.
Revenue for the third quarter was 4.43 billion baht, up from 1.89 billion the previous period.
The profit is largely in line with analyst forecasts at seven securities companies.
An AAV executive attributed lower fuel prices, which slipped to an average of US$119 per barrel from $127 a barrel in the same period last year, as one of three main factors helping AAV's profitability.
Higher sales revenue, a 2 percentage-point increase in load factor to 82%, and 6.4% growth in ancillary revenue from in-flight meals and duty-free goods also inflated earnings.
For the first nine months of this year, AAV's revenues were up by 78% over the same period last year to 10.48 billion baht, with a net profit of 15.24 billion baht that included a fair value gain in the second quarter of 14.69 billion.
TAA's load factor in the first nine months was 82% versus 81% last year, as the airline carried 6 million passengers, up 19.6% year-on-year.
Tassapon Bijleveld, chief executive of both AAV and TTA, said the improved performance reflects TTA's continual expansion of operations through more frequencies on existing routes, introduction of new routes, especially to China, and enlarging its fleet size.
TAA launched three new routes to China this year _ to Chongqing, Wuhan and Xian _ all of which have been well-received by travellers, said Mr Tassapon.
He noted that TAA's relocation of its base to Don Mueang airport from Suvarnabhumi on Oct 1 has allowed the airline to better manage costs and improve efficiencies.
In the third quarter, TAA added one more Airbus 320, and it has added two more since Oct 1, bringing its fleet to 27.
About the author
- Writer: Boonsong Kositchotethana
Position: Deputy Editor Business