High Expenses and Liability Cause AAV’s Profit to Shrink 95% from ฿1.4bln. to ฿70M.
AAV's 2018 profit decreased by 95% from THB 1,470 million to THB 70 million due to higher expenses and liability.
Asia Aviation Public Company Limited (AAV) has reported its consolidated financial statement 2018 through the Stock Exchange of Thailand as follows:
Profit for the year attributable to AAV for 2018 amounted to THB 70.0 million, 95% or THB 1,470.5 million lower than the previous year, having a net profit margin of 0.2% and basic earnings at ฿0.0144/share.
In 2018, AAV’s total liabilities amounted to THB 33,123.9 million, increased by THB 1,803.5 million or 6% YoY, due to the issuance of the debentures in an amount of THB 2,500.0 million and the proceeds will be used for general investment purpose.
Total expenses of Thai AirAsia amounted to THB 39,539.2 million, raised by 16% from THB 33,972.5 million in 2017. Predominantly, the cost of sales and services amounted to THB 36,424.0 million or increased by 11% from THB 31,023.5 million in 2017, largely from fuel costs in an amount of 14,635.6 million which accounted for 37% of total expenses.
The average reference jet fuel price in 2018 was at USD 85.2 per barrel, which increased by 32% from at USD 64.3 per barrel in 2017. At the same time, expenses related to repair and maintenance, staff costs, aircraft and aircraft engine rental, ramp and airport operating costs increased relative to fleet expansions.