AAV announces 4Q2023 financial results with Baht 2,813.6 million in net profit Passengers carried grew 90 percent to 18.9 million in 2023


Bangkok, 23 February 2024 - Asia Aviation Plc. (“AAV”), the sole shareholder of Thai AirAsia Co., Ltd. (“TAA”), announced its 4Q2023 financial results yesterday, posting a net profit of Baht 2,813.6 million* for the quarter.

Revenue from sales and services reached Baht 12,457.2 million, a 51 percent increase compared to the same period last year, resulting in earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Baht 3,085.2 million, an increase of 89 percent from the corresponding period last year.

Passenger traffic reached 5.1 million, up 26 percent, with an average load factor of 90 percent. In terms of post-pandemic recovery, the airline reached over 94 percent of domestic seat capacity compared to 4Q2019, while international seat capacity recovered by 84 percent, reflecting the positive trend in growth recovery of the aviation industry.

For the full year of 2023, AAV reported revenue from sales and services of Baht 41,241.5 million, a 135 percent increase from the previous year. EBITDA was Baht 7,032.4 million, while net profit was Baht 465.8 million**, a significant improvement from a net loss of Baht (8,214.4) million in the previous year. Passenger traffic for the year reached 18.9 million, a 90 percent growth compared to the previous year, with a load factor of 90 percent. The ratio of domestic to international passengers was 63 to 37.

Santisuk Klongchaiya, CEO of Asia Aviation Plc. and Thai AirAsia Co., Ltd., said: “Thailand's tourism industry made a vibrant recovery throughout 2023, achieving the target of welcoming 28 million tourists, supported by the full reopening of China, the last major country to open international borders, and the gradual improvement of the global economy. The Thai government has also clearly prioritised the tourism sector, with ongoing support projects such as visa exemptions for various countries, streamlining airport processes to accommodate tourists, and continuous domestic tourism promotion campaigns, contributing to the strong recovery of the aviation business.

"In the fourth quarter, which is the high season, we saw a clear surge in tourism, especially in the domestic tourism market, such as Chiang Mai. In December, Thai AirAsia increased flights from all regions to Chiang Mai by more than 200 flights per week, similar to Phuket, which was served by 144 flights per week. For international destinations, we opened new routes from Don Mueang to Guwahati and Ahmedabad in India, and resumed the Don Mueang-Shantou route. Earlier this year, the governments of Thailand and China reached a visa exemption agreement, set to take effect on the upcoming 1st March. This development is anticipated to boost the tourism industry, particularly benefiting Thai AirAsia as the airline with the most routes to China. Currently, we operate over 103 weekly flights to various Chinese destinations," said Santisuk.

Looking ahead to 2024, it is expected to be a promising year for tourism, especially in the international market, with the continuous recovery in the Chinese travel market and new routes operated by Thai AirAsia, such as from Don Mueang to Shanghai, Kaohsiung, and recently Okinawa in Japan. Thai AirAsia expects to carry 20-21 million passengers in 2024, with a load factor close to 90 percent, while targeting a 20-23 percent growth over 2023 in revenue from sales and services, and expanding its fleet to 60 aircraft by the end of the year. The Company will continue to focus on improving operational efficiency to offset the rising costs associated with aircraft and airports. With this outlook, Thai AirAsia is determined to continue operating profitably in 2024, which will strengthen its financial position and better serve all stakeholders, especially employees, investors, passengers, and the community.

Thai AirAsia places great importance on "On-Time Performance," which is a key service quality factor and one of the top reasons passengers choose to fly with the airline. In 2023, Thai AirAsia maintained its position as the airline with the highest on-time performance in Thailand and ranked third in Asia-Pacific, according to Cirium rankings. The Company is also committed to advancing towards sustainable aviation, covering economic, social, and environmental aspects, especially with projects aimed at reducing carbon emissions through energy-efficient flight operations and the plan to introduce more new Airbus A321neo aircraft into its fleet.

*Gain (Loss) on exchange rate for 4Q2022 was Baht 3,712 million and for 4Q2023 was Baht 2,314 million

**Gain (Loss) on exchange rate for 2022 was Baht (1,362) million and for 2023 was Baht 672 million