Economic growth and excellent tourism perspective have a positive impact on the results of Thai air carriers during the first quarter of 2013. Both Thai Airways International and Thai AirAsia recorded a growth in benefits thanks to a favourable environment.
BANGKOK- Both Thai Airways International and Thai AirAsia announced in the same week their operating results for the first quarter 2013. And not surprisingly, both airlines recorded a growth in benefits thanks to a favourable environment. The positive evolution was sustained by continuous growth of the economy in the region as well as excellent performance in the tourism sector. The economic slowdown in traditional markets out of Europe (especially in the export business and in the tourism industry) did not affect to much airlines’ results due to the strength of regional markets such as China, Indonesia, Korea or the Philippines.
For Thai Airways International, operating results for the first quarter of 2013 translated into a net profit of US$ 278.3 million (THB 8,295 million) up by 58.3 per cent over the same period of 2012. A result which helped the carrier achieving a net profit margin of 14.8 percent, higher than the same quarter last year of 9.7 percent.
Commenting on these results, Thai Airways President Sorajak Kasemsuvan explained this strong growth to higher passenger transport numbers while air cargo showed signs for potential recovery. Thai Airways president predicts that the rest of financial year should continue to witness growth, although at a possible slower pace. Amidst tough competition within the commercial airline industry, THAI adhered to its strategic initiatives and concentrated on building brand reputation, and delivering an appropriate level of profitability while ensuring the Company’s long-term sustainability and to be among the forefront airlines in Asia.
In the first quarter of 2013, THAI added 5 new aircraft to its fleet while decommissioning older aircraft. Available Seat Kilometers (ASK) increased by 5.5 percent over the same period last year while Revenue Passenger Kilometers (RPK) also increased 7.7 percent. Consequently, cabin factor averaged at 79.8 percent as compared to last year’s recorded 78.2 percent. THAI continued to adhere to its corporate portfolio strategy through the expansion of THAI Smile’s routes between Bangkok – Mandalay and Bangkok – Ahmedabad starting March 31, 2013. Other routes that THAI Smile also plans to launch include Phuket – New Delhi , Phuket – Mumbai and Phuket – Kuala Lumpur.
Low cost carrier Thai AirAsia stays also on its growth course in the first quarter of 2013, achieving revenue of US$ 202.3 million (THB 6,029.0 million), a figure up by 24 per cent, while the airline’s net profit increased Baht 739.0 million, up by 55 percent. The airline carried a total of 2.6 million passengers, an increase of 20 percent on a year to year basis. March saw TAA’s greatest rise in passengers as over 920,000 persons travelled with the airline, ensuring a load factor of 87 percent.
Tassapon Bijleveld, CEO of Asia Aviation. Plc. or AAV, the major shareholder of Thai AirAsia, remarked that Thai AirAsia’s strong growth was in line with its increase in capacity. In 1Q13, Thai AirAsia acquired 1 new Airbus A320, bringing its fleet to 28 at the end of the quarter(versus 24 aircraft as at 1Q12). The addition allowed the airline to increase the frequency of flights to popular domestic destinations such as Phuket, Chiang Mai, and Hat Yai, as well as to strengthen its networks in China and throughout Indochina, both of which experiencing rapid expansion.
Mr. Bijleveld now forecasts that Thai AirAsia will likely achieve its goals for 2013. The carrier forecasts to have by the end of the year a fleet of 35 new aircraft capable to transport up to 10 million passengers.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
