Thai AirAsia X delivers Q2 upturn
text size

Thai AirAsia X delivers Q2 upturn

Thai AirAsia X's A330-300 takes off from Don Mueang airport. The long-haul low-cost carrier sees improved operation performance. (Thai AirAsia X photo).
Thai AirAsia X's A330-300 takes off from Don Mueang airport. The long-haul low-cost carrier sees improved operation performance. (Thai AirAsia X photo).

Budget long-haul carrier Thai AirAsia X (TAAX) reported an improvement in performance in the second quarter.

It carried 35% more passengers in the April-June period to record 308,000, compared with 228,000 in the same period last year.

The volume was well ahead of the 3% rise in seat capacity available in the period.

Meanwhile, its load factor soared to 89%, up from 72% in the same period last year, TAAX executives told the Bangkok Post.

Second-quarter revenue jumped 17% to 1.75 billion baht from 1.4 billion in the previous period, though the airline stopped short of disclosing whether its balance sheet has turned around.

TAAX executives attributed the airline's improved operation results to the 8% increase in the overall number of international tourist arrivals in the second quarter.

The improvement came despite the International Civil Aviation Organization's red-flagging Thailand in December last year for aviation safety shortcomings, which prompted Japan and South Korea to freeze additional flights by Thai-registered airlines, they said.

Japan and South Korea have been the prime markets to drive the growth of TAAX, which has had to confine itself to the previously permitted services to Narita, Osaka and Incheon.

The improved second-quarter performance will enable the airline to carry the planned 1.1 million passengers for all of 2016, up from 900,000 last year, as well as realising an average load factor of not less than 80%, similar to last year's figure.

The Bangkok-Shanghai route was said to be TAAX's best-performing route in the second quarter.

TAAX is expected to launch its seventh later this year, adding to its current six routes which in recent months include flights to Tehran and Muscat.

There is no definite plan to increase its fleet of A330-300 wide-body jets beyond the six now in service.

Meanwhile, Malaysia-based parent AirAsia X Bhd said the airline group, which began operation in 1996, made its first profit in the second quarter.

It posted a net profit of 1 million ringgit (850,000 baht), compared with losses of 133 million ringgit in the same period last year.

This was driven by a 35% year-on-year rise in revenue to 883 million ringgit on the back of a 71% increase in scheduled flights revenue.

Do you like the content of this article?
COMMENT