Thai Lion Air is expanding its fleet and resuming routes in response to the increasing tourism demand, aiming to serve 6-7 million passengers and achieve profitability for the first time since the pandemic.
Nuntaporn Komonsittivate, the airline’s head of commercial, reported that its domestic and international routes have recovered to 60% of pre-pandemic levels, with the fleet increasing from 11 to 20 aircraft.
This year, the average load factor is projected to be 85% for domestic flights and 75% for international flights.
The airline has introduced new destinations this year, including Penang, Malaysia, and Ahmedabad, India. In the second half of the year, Thai Lion Air plans to receive five additional aircraft, comprising Boeing 737-800 and Boeing 737-900ER models, which will facilitate the launch of new routes to Amritsar, India, and Hong Kong.
Furthermore, the airline will enhance its flights to Japan through Taipei, restore direct flights to various cities in China, and resume all domestic routes that were halted during the pandemic, albeit at 50-60% capacity compared to 2019.
If the airline can secure a seat allocation from the 7,000 available seats to India, as permitted by the Civil Aviation Authority of Thailand, it will increase flights to Bangalore and Mumbai.
“As Thailand and other Asian destinations ramp up tourism initiatives, we expect this high season to be lively,” remarked Mrs. Nuntaporn.
The visa-free policy has also contributed to a surge in Chinese and Indian travelers, leading to a strong load factor on these routes, while more Thais show interest in traveling to China.
However, potential challenges such as high household debt and low consumer spending power remain, which could influence travel choices.
In 2019, Thai Lion Air served 13-14 million passengers with a fleet of 35 aircraft. Before the pandemic, its primary destination was China, with 22 routes compared to just six this year.
Another five aircraft are anticipated to be delivered next year, allowing the fleet to grow to 30 aircraft. With this expanded capacity, the airline will consider reinstating services to Japanese cities like Fukuoka, Nagoya, and Osaka, which were suspended during the pandemic.
“We aim to restore our fleet to pre-2019 levels as quickly as possible,” stated Mrs. Nuntaporn.
The airline is committed to operating from Don Mueang airport and has no plans to establish U-tapao airport as an additional hub, as previously envisioned.
As a member of the Airlines Association of Thailand, she mentioned that all members are preparing to propose a new approach to the Revenue Department regarding the collection of the jet fuel excise tax.
