Bangkok Airways Forecasts 20% Passenger Revenue Growth Amid Demand Recovery
President of Bangkok Airways, Puttipong Prasarttong-Osoth, has announced optimistic projections for the airline’s passenger revenue this year as demand rebounds and pricing strategies are adjusted. The company anticipates a robust performance during Songkran and the second quarter, with forward bookings showing promising signs.
With an improved Thai aviation industry compared to the previous year, Bangkok Airways has set a target of serving 4.5 million passengers and achieving an average load factor of 85%, resulting in revenue of 17.8 billion baht. In the previous year, the airline generated 14.9 billion baht in revenue from nearly 4 million passengers.
Revenue projections for Bangkok Airways assign approximately 40% from the European market, followed by 31.5% from the Thai and Southeast Asian markets, with 10% originating from China, Japan, and South Korea. The airline boasts a network encompassing 12 domestic destinations and eight international locations.
Bangkok Airways has successfully reinstated its most recent routes, such as Samui-Chongqing and Samui-Chengdu, operating at a frequency of 2-3 flights per week to accommodate the growing demand from inbound Chinese travelers. Planning for further expansion, the airline aims to add new routes upon securing lease agreements for two additional Airbus A319 jets, with a vision of expanding its fleet to 25 by year’s end.
As the second quarter progresses, Bangkok Airways reports strong booking numbers, particularly during April with a load factor ranging between 60-70%, boosted by the Songkran holiday. Forward bookings for the airline throughout the second quarter have shown a 14% improvement compared to the same period last year.
Addressing financial matters, Anawat Leelawatwatana, the senior vice-president for finance and accounting, highlighted that while the margin from flight operations saw improvement last year, the average ticket price stood at 3,900 baht per seat. Noting that fuel and aircraft maintenance costs remain significant expenses impacting the industry, Mr. Anawat acknowledged the challenges faced last year due to geopolitical tensions affecting European passenger numbers.
Looking ahead, Bangkok Airways anticipates a potential uptick in passenger numbers if geopolitical tensions ease from the previous year. Despite delays in the high-speed railway project at U-tapao airport, the airline remains committed to its airport project in the area without disruptions.
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