AAV Announces Operational Results For The First Quarter 2021 With Strict Cost Containment And Capacity Management To Combat COVID-19 Impacts While Launching Restructuring Plan To Bolster Liquidity
BANGKOK, 15 May, 2021 - Asia Aviation Plc. (AAV), major shareholder of Thai AirAsia Co., Ltd. (“TAA”), has announced its operating results for the first quarter of 2021, posting a total revenue of Baht 1,351 million, with a net loss of Baht 1,865 million for the quarter. During the quarter the airline recorded a load factor of 66 percent. However, the “Restructuring Plan” which commenced earlier this month, aims to secure Baht 6,825 million in fundraising to support liquidity, sustaining the business until the COVID-19 situation has recovered.
CEO of Asia Aviation Plc. and Thai AirAsia Co. Ltd., Santisuk Klongchaiya pointed out that the first quarter of 2021 was impacted by a second wave of the COVID-19 pandemic. The pandemic has depressed the tourism and aviation businesses for over one year now, which initially emerged during the end of last year’s first quarter.
He pointed out that AAV and TAA have reviewed every aspect of the operations and have taken appropriate courses of action, including strict cost management, cooperation between executives and employees to voluntarily take leave without pay and furlough schemes, flight management processes and have also sought out new business opportunities, leveraging the Group’s digital transformation where it makes commercial viable sense.
In Q1/2021, AAV posted a total revenue of Baht 1,351 million , a net loss of Baht 1,865 million, compared to a net loss of Baht 671 million in the same period last year (absorbing the COVID-19 impact for the full quarter this year, which was different from last year when the impact hit only at the end of the quarter). The average load factor during this quarter was 66 percent. With signs of recovery in March 2021, the load factor achieved 70 percent in line with the government’s vaccination programme. During this quarter, TAA operated 42 percent of the first quarter of 2020 domestic capacity, while international flight services were not yet resumed. TAA optimised fleet utilisation by reducing the number of aircraft in operation to a total of 61 aircraft at the end of the quarter.
“Our most critical plan to overcome the negative effects of COVID-19 is securing the capital for sustainable growth in the future. We recently announced a Restructuring Plan last month. This plan will secure up to Baht 6,825 million for TAA to support its liquidity and business operation. The funds are to be secured from new investors and existing investors by TAA being listed on the Stock Exchange of Thailand, instead of AAV. All these decisions were made with due diligence and consideration to uphold the utmost benefits for our stakeholders” Mr. Santisuk said.
In view of the latest third wave that has materially impacted our business since middle of April 2021, denting the full resumption of domestic routes that TAA successfully managed to see at the end of March, we have taken further steps to reduce the cash burn from our operations including active capacity management, and the deferment of loan repayment and lease payments.
Furthermore, there are many supporting measures in progress, including the Cabinet approving an extension of the Fuel Excise Tax reduction to 31 December 2021 to help assist the aviation industry, the global vaccination progress both domestically and internationally, better education and travel bubbles and as well as the implementation of a global digital travel pass such as the one being currently tested by IATA and the Phuket Sandbox model for opening the Kingdom to foreign visitors.
“With the aforementioned plans and supportive factors, we believe that we will return stronger than ever when the opportunity presents itself. We will continue to be ready to compete with our great value airfares and will maintain our dominant market leadership.” Mr. Santisuk stated.
TAA aims to not only maintain but increase its market share by leveraging digital initiatives and innovative technologies from the AirAsia Group to deliver greater value and choice as well as quality, on-time flights and enhanced safety and health measures.
To become more than just an airline, we offer many services under airasia.com such as, SNAP, flight + hotel package with value price for customers, and many more. Furthermore, we also take advantage of an extensive regional aviation network, via our “Teleport”, providing logistic services to transport both air cargo and ground services to customers in response to the current expansion of the logistics business.