AAV Reports Net Loss of ฿4.7Bn in 2020, Holding On to ฿1.1Bn CCE amid Recovery Hopes
AAV Reports Net Loss of ฿4.7Bn in 2020, Expecting a Recovery as Thailand Reopens Border while Holding On to ฿1.1Bn of Cash and Cash Equivalent.
Asia Aviation Public Company Limited (AAV) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;
In 2020 AAV recorded a further loss of 4,764 million baht, increased from a net loss of 474 million baht in 2019.
AAV had total revenues of 16,237.3 million baht in 2020, decreased by 61% compared to the same period last year. Meanwhile, total expenses were in a total of 23,788.1 million baht, declined by 43% from the year ended 2019 (FY2019), resulting in a net loss for the period attributable to equity holders of the company in FY2020 of 4,764.1 million baht, compared to the net loss in an amount of 474.0 million baht for the previous year.
The decline in revenue was due to the Covid-19 outbreak, whereby Thai AirAsia temporarily hibernated operations on all international flights from 22 March 2020 onwards, resulting in a 57% decrease in passengers to 9.49 million in FY2020, especially for international passengers declined by 84% from last year, in line with the tourism industry.
Due to several reasons, the company had cash and cash equivalents at the end of 2020 amounted to 1,110.4 million baht.
The company stated that in 2021, Thai AirAsia is ready to serve and stimulate travelling and tourism domestically and internationally while maintaining its leading position and market share. The passenger carried in 2021 is anticipated to be 9.4 million with the load factor of 75%, due to the reopening border for the international travellers in the fourth quarter, in line with the industry outlook.
Thai AirAsia is focusing more on the logistics sector, particularly air cargo, in support of vaccines’ transport domestically and regionally. Moreover, Thai AirAsia has active cost management to reduce the operation cost and defer the unnecessary expense.
In 2021, Thai AirAsia has no receiving plan for new aircraft deliveries and expects to reduce the aircraft owing to retirement and reallocation within the AirAsia group, bringing its fleet to 54 aircraft by the end of this year. The reduction in fleet size aligns with the forecasted demand from the impact of the Covid-19, which will take time back to normal. Furthermore, Thai AirAsia offers new customer experiences, including stringent health and hygiene with contactless measures, and is providing the biometric facial recognition (F.A.C.E.S) to increase customer’s convenience and safety.