SET-listed Asia Aviation Plc (AAV), a major shareholder of Thai AirAsia Co Ltd (TAA), has reported a 76% year-on-year rise in its first-quarter net profit, buoyed by strong growth in number of passengers carried, high demand during peak season and the baht appreciation.
Santisuk: Assumes chief executive post
Net profit for the first three months was registered at 1 billion baht, up from 570.3 million logged in last year's corresponding period.
The company's revenue was recorded at 11.6 billion baht, up 22% year-on-year from 9.5 billion.
From January to March 2018, the number of international tourists to Thailand continued to grow, reaching 10.6 million, up 15% compared with the same period last year, said AAV.
"The number of passengers carried during the [first] quarter by Thai AirAsia was 5.6 million, increasing by 16% year-on-year, above the 15% growth in seat capacity," said AAV in its statement.
"During the quarter, Thai AirAsia added three aircraft, bringing its total fleet to 59 aircraft at the end of the quarter."
The airline also started operating seven new routes, both domestic and international, during the first quarter, contributing to a higher profit margin.
AAV and TAA executive chairman Tassapon Bijleveld said TAA saw continuous growth in this year's first quarter, mainly attributable to its enthusiastic work in the domestic market, especially in secondary provinces in support of the government's policy to promote secondary province tourism.
"We spent the first quarter reinforcing our leadership and strength in the domestic market in line with policies from the government and the Tourism Authority of Thailand," said Mr Tassapon.
For the second quarter, TAA is set to continue its business plan, including increase flight frequencies on popular routes, he said.
TAA aims to serve 23.2 million passengers, maintaining a load factor at 87% and plans to add seven new aircraft during the year to bring its fleet to 63, said Mr Tassapon.
In related news, longtime executive and founding member of TAA Santisuk Klongchaiya has been appointed as TAA chief executive, effective yesterday.
Mr Santisuk was appointed as TAA's director of commercial affairs back in 2007 when the low-cost carrier was still a novelty. The posting was a considerable challenge with the initial task being to establish AirAsia as an eminent and trusted brand.
Mr Santisuk later became Mr Tassapon's right-hand man in developing business strategy as well as marketing, sales and public relations policies.
AAV shares closed yesterday on the Stock Exchange of Thailand at 5.85 baht, an increase of 25 satang, in trade worth 127 million baht.