Thai AirAsia eyes year-end international restart amid worsening financial results

Thai low-cost carrier Thai AirAsia has warned that the third wave of coronavirus infections in April will impact its profitability, as it sank deeper in the red amid plunging revenue. In financial results for the quarter ended 31 March, Thai AirAsia parent company Asia Aviation also forecast international flying to resume by Q4, with the carrier reaching full capacity by early 2022. Asia Aviation reported a quarterly operating loss of Bt3.2b ($102m), deepening the Bt1.37b loss it reported in the same quarter last year. Revenue plunged about 86% year on year, to Bt1.35b, outpacing the drop in costs, which fell 58% year on year to Bt 4.56b. Thai AirAsia carried just 980,000 passengers in the quarter, a 78% drop year on year. RPKs plunged 82%, while capacity shrank 79%. The carrier offered just under 1.5m seats for the period, 73% lower than the same quarter last year. In its outlook, Thai AirAsia warns that the April surge in coronavirus cases “would impact” its Q2 earnings. “These infections are more severe than the previous waves and affect tourism recovery in Thailand, leading to lower travelling demand,” it adds. To this end, Thai AirAsia states that it would be rationalising capacity across its network to maximise profitability. <br/>