Thai Vietjet targets nearly 8 million passengers this year as it improves its aircraft utilisation rate and adds flights to existing routes, with a plan to import new Boeing 737 Max jets on tap for next year.
Chief executive Woranate Laprabang said the visa-free scheme this year has helped drive demand among international routes, especially China.
The airline connects to more than 10 Chinese destinations, both charter and scheduled flights, accounting for 30% of its total capacity.
During the first quarter this year, Thai Vietjet's average load factor for China routes surged to 90%, and it maintained an 80% load factor during the low season.
Despite a sluggish Chinese economy, Mr Woranate said demand remains among high-spending Chinese tourists eager to visit Thailand.
The airline also reported a load factor of 80% for flights to Vietnam, which accounted for 10% of its overall capacity, while domestic routes tallied 50%.
"The aviation industry still faces an aircraft shortage, unable to meet travel demand. Thai Vietjet has operated with the same 18 jets the past two years," he said. "Our strategy is to maximise our aircraft utilisation rate to 12 hours this year, up from 10.5 hours last year."
The airline's fleet comprises the Airbus A320 and A321 series. Thai Vietjet plans to lease two more A320 aircraft via a short-term contract to serve high travel demand in the fourth quarter, said Mr Woranate.
Pinyot Pibulsonggram, head of commercial at Thai Vietjet, said new aircraft will be mainly allocated to increased flights on existing routes, such as in China and Vietnam, along with a new route to Mumbai, India.
Next year, the airline expects delivery of 9-12 new Boeing 737 Max jets, part of a five-year plan to replace Airbus with Boeing aircraft.
Thai Vietjet still has confidence in Boeing, despite a series of missteps in recent years, he said.
Mr Pinyot said the new Boeing jets will allow the airline to operate with a longer range as it plans to open routes to new cities in China, India and Japan.
Thai Vietjet recently signed a memorandum of understanding with Chaipattana Foundation to promote environmental preservation and sustainability projects as part of the Fly Green Fund Initiative.
The airline plans to begin selling local products supported by the foundation in the fourth quarter.
Thai Vietjet expects sustainable aviation fuel to comprise 1% of its total fuel consumption by 2026, rising to 5% by 2030.
As a result, roughly 153,000 tonnes of carbon emissions would be reduced in five years, according to the airline.
