Bangkok Aviation Fuel Services Plc (BAFS) expects its revenue in 2025 to reach the high level recorded in 2019, driven by growing demand during the high season for tourism this year, says president ML Nathasit Diskul.
Thailand welcomed 40 million foreign arrivals in 2019, leading BAFS to record a new high in oil sales, reaching 16.8 million litres per day on average, compared with 13.7 million litres a day in 2018, according to the company.
BAFS suffered a drop in revenue in 2020 when the Covid-19 pandemic reached Thailand, leading to stricter restrictions on air travel and the widespread enforcement of lockdown measures in an effort to contain the disease.
The company earned more revenue as the pandemic eased and tourism recovered.
The company estimates that sales reached 5 billion litres in 2024, representing an 18% increase on sales of 4.3 billion litres in 2023.
"This year, we believe the aviation business will benefit from positive factors, especially the continual increase of international flights," he said.
ML Nathasit attributed the increase to the opening of a third runway at Suvarnabhumi airport in November 2024, allowing the airport to serve 94 flights per hour, up from 68 flights per hour previously.
"That will lead to higher demand for aviation fuel," said ML Nathasit.
BAFS is allocating 1 billion baht to support its business expansion this year. Half of the budget will be spent through its subsidiary BAFS Pipeline Transportation Co to run the oil pipeline business.
The company announced last year it plans to build a 52-kilometre oil pipeline connecting Saraburi with Ang Thong to facilitate oil transport from the East to the North, as well as reduce dependence on oil trucks that generate carbon dioxide emissions.
BAFS Pipeline Transportation has teamed up with Thai Petroleum Pipeline Co to work on the project, which is scheduled to commence commercial operations within 2026.
The oil pipeline will increase oil transport by more than 700 million litres a year.
BAFS is considering selling its shares in BAFS Pipeline Transportation to its business partners. This would result in its shareholding decreasing from 75.03%. However, BAFS will maintain its ownership share at more than 50%.
