Asia Aviation Plc, the parent company of Thailand’s largest low-cost airline, is expecting exceptional earnings from its core operations this year due to a surge in overseas visitors boosting seat demand and airfares.
Thai AirAsia, the budget airline unit fully owned by the company, is planning to increase flights to China and India to take advantage of the growing travel demand from these two major markets, according to Asia Aviation’s CEO, Santisuk Klongchaiya, in an interview on July 4 in Bangkok.
“The growth in earnings will be primarily driven by China and India,” mentioned Mr. Santisuk, highlighting the increasing number of Thai travelers to these countries. “The robust demand is expected to continue supporting our earnings for the remainder of the year.”
Thailand experienced a significant increase in foreign tourist arrivals, with 17.5 million visitors in the first half of the year, a 35% rise from the previous year, with a significant portion coming from China. The government, led by Prime Minister Srettha Thavisin, views tourism as a crucial component for revitalizing the country’s economy and is considering policy changes such as potentially lifting the ban on afternoon alcohol sales and legalizing casinos, in addition to expanding airport capacity.
Amidst challenges including foreign exchange losses due to currency fluctuations, Asia Aviation managed to achieve a core profit of 1.64 billion baht in the March quarter, a notable improvement from the previous year’s loss of 203 million baht. The company remains optimistic about its performance, especially with the continuous increase in international visitors.
With plans to expand its fleet and capitalize on the growing demand from China, Thai AirAsia aims for further growth in 2024, as highlighted by Bloomberg Intelligence in a note on June 26.
