Thai AirAsia (TAA) is eyeing a full rebound of domestic capacity in the fourth quarter after seeing early signs of improvement.
Santisuk Klongchaiya, chief executive of TAA, said the load factor in September was 87% from 75% available capacity, as airlines have to follow social distancing measures, which was cited as the reason why tickets were 20-30% more expensive per seat.
The airline has resumed more domestic routes such as Krabi, Surat Thani, Phitsanulok and Sakon Nakhon in October, which tally 20 routes.
Average frequency was 30 flights per day, or 25% of domestic capacity, as the airline is flying 10 planes from an aircraft fleet of 60.
Mr Santisuk said flight frequency and aircraft utilisation will double each month, while load factor in the last quarter should increase to 80%.
"The airline used 30 aircraft for full domestic capacity last November and December thanks to the boom in domestic tourism," Mr Santisuk said.
"We are hopeful that domestic capacity could reach its peak in December and next January."
Thai AirAsia aims to carry 4 million passengers this year, compared to 9.49 million last year and 22 million prior to the pandemic.
However, the airline is still struggling with other fixed costs on employees and aircraft maintenance as it doesn't have revenue from international routes, which previously accounted for 60% of the total.
He said international flight resumption will depend on travel bubble negotiation as the airline is ready to serve any destinations that have travel agreements with Thailand.
In terms of its business restructuring, Mr Santisuk said it is still waiting for approval from the Stock Exchange of Thailand and the Securities and Exchange Commission before proposing the plan to TAA's board of directors.
Sarun Benjanirat, deputy director general of the Civil Aviation Authority of Thailand (CAAT), said the agency had already proceeded with the plan to increase flight capacity to 100% by Oct 15, and was waiting for approval from the Centre for Covid-19 Situation Administration.
CAAT and the Interior Ministry will also discuss streamlining different inter-provincial travel regulations to facilitate more trips.
Phiphat Ratchakitprakarn, Tourism and Sports minister, said his ministry plans to potentially implement city bubbles this year along borders such as Trat and Cambodia's Koh Kong; Nong Khai and Laos; and Koh Lipe in Satun and Malaysia's Langkawi.
A total of 15 million international arrivals are predicted for next year, generating around 600 billion baht, while domestic trips are expected to reach 160 million, generating a total of 882 billion baht.
