Thai AirAsia (TAA), Thailand's largest low-cost carrier, posted a 109% jump in second-quarter profit, aided by an increase in passengers, lower fuel prices and foreign exchange gains.
The airline made a net profit of 499 million baht on a 21% year-on-year surge in revenue to 5.36 billion baht, executives said yesterday.
TAA carried 2.4 million passengers, up from 1.9 million a year earlier. That represented a 25% increase that outstripped capacity growth of 20% resulting from an expanded fleet that had grown to 29 by the end of June.
The carrier was able to fill 82% of seats, up from 79%.
Lower jet fuel prices averaging US$118 a barrel, down from $131 a year earlier, contributed to higher profitability. Fuel accounted for 42% of overall operating costs, down from 46%.
TAA also posted 132 million baht in foreign exchange gains in the quarter.
Chief executive Tassapon Bijleveld described the second-quarter performance as "highly satisfactory".
The airline's holding company, the SET-listed Asia Aviation Plc (AAV), reported a 98.21% drop in second-quarter net profit to 264.62 million baht.
AAV attributed the decline largely to an 14-billion-baht extraordinary item in the same period of last year _ the revaluation of investment in TAA.
AAV is the major shareholder of TAA with a 55% stake.
For the first half of this year, TAA increased its revenue by 22% to 11.38 billion baht, with a 73% rise in net profit to 1.23 billion.
TAA grew its passenger volume by 23% to 5 million, raising its load factor to 84%, up from 83% in the first half of last year.
Mr Tassapon, also AAV chief executive, said TAA plans to acquire six more aircraft to build its fleet to 35 by the end of this year before adding eight more aircraft next year.
About the author
- Writer: Boonsong Kositchotethana
Position: Deputy Editor Business