17-5-2024 (BANGKOK) Thai AirAsia X is poised to achieve a profitable year by carrying nearly one million passengers, driven predominantly by its robust Japan routes, following a return to profitability in the first quarter.
Tassapon Bijleveld, Chief Executive of Thai AirAsia X, highlighted that the airline’s performance was significantly bolstered by its operations in Japan, which showed resilience even during typically low travel seasons. “Japan routes exhibit no seasonality, allowing us to maintain strong bookings during the third quarter, a period that usually sees a decline,” Mr Tassapon stated.
Japan routes contribute the highest revenue share, accounting for 50% of the airline’s income, with a load factor exceeding 90%. Additional revenue streams include routes to South Korea and Australia. Japanese passengers make up 35-40% of the total passenger base, with Thai passengers comprising 60-65%, partly due to the weakened yen.
Despite a rise in hotel prices in Japan, the stronger baht has allowed Thai travellers to cut their overall travel expenses by 20-30%. Thai AirAsia X will also resume direct flights to Nagoya, which were suspended during the pandemic. Starting in August, the airline will operate four flights per week from Suvarnabhumi Airport, enhancing its frequency to Japan to 36 flights per week across Tokyo, Osaka, Sapporo, and Nagoya.
This expansion is expected to boost overall revenue by 15%. The airline targets one million passengers for 2024, reaching 90% of its pre-pandemic levels in 2019, with an average load factor of 85%.
In the first quarter of this year, Thai AirAsia X recorded its first post-pandemic operational profit, exceeding 1 billion baht. The airline aims to achieve earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 1.5-2 billion baht by year-end.
Mr Tassapon also revealed plans to launch 2-3 new routes within the year, including another destination in Japan. The airline is exploring potential routes to European cities, Melbourne in Australia, and additional Japanese cities such as Sendai.
Regarding operations in Kazakhstan, initial studies indicated high demand for flights to Phuket, which may not align with the current capabilities of Thai AirAsia X’s fleet. Presently, the fleet consists of seven Airbus A330s, with four more expected to be delivered. The airline plans to operate 15 aircraft by 2025.
Thai AirAsia X aims to exit its rehabilitation plan by the end of this year and intends to raise 1 billion baht from investors to support expansion efforts. Mr Tassapon holds a 48.6% stake in the airline, while AirAsia X Berhad owns 49%, and Thai investors hold the remaining shares.
