Bangkok Airways aims high for 2024
The airline is confident that Thailand’s tourism is still booming, travel trends are recovering close to pre-covid levels
Bangkok Airways Public Company announces its 2024 business strategy focused on expanding its presence in the aviation sector to boost Thailand's tourism economy and hasten its recovery. The airline aims to transport 4.5 million passengers, generating revenue of 17.8 billion baht, while also reinforcing partnerships with tourism-related enterprises.
Puttipong Prasarttong-Osoth, President of Bangkok Airways PLC, stated, “The global aviation and tourism industries, including Thailand's, continue to recover. In 2023, global airline revenue reached 107% of pre-Covid levels (2018), with the International Air Transport Association (IATA) forecasting a 2.536 billion increase in passengers from 2024 to 2038 in the Asia-Pacific region. Thailand's domestic passenger numbers in 2023 reached 74% of pre-Covid levels, with domestic travel at 80% and international travel at 68% of 2018 levels. Contributing to this recovery are government initiatives such as visa exemptions for select nationalities, the promotion of secondary city tourism, and the organization of events to attract tourists."
Puttipong further outlined, “Bangkok Airways' operational objectives for 2024 encompass conducting 48,000 flights with an average load factor of 85%, serving 4.5 million passengers, and generating passenger revenue amounting to 17.8 billion baht. The anticipated average ticket price per flight is approximately 3,900 baht per seat. Notably, there is a noticeable uptick in advance seat reservations for 2024 compared to the same period in 2023, reflecting a growth of around 14%. These reservations are spread across various route groups, with 63% allocated to Samui routes, 28% to domestic routes, 8% to CLMV (Cambodia, Laos, Myanmar, and Vietnam) countries, and 1% to international routes."
He added, “Presently, Bangkok Airways operates flights to 20 destinations, including 12 domestic destinations like Bangkok (Suvarnabhumi and Don Mueang), Samui, Chiang Mai, Phuket, Krabi, Trat, Lampang, Mae Hong Son, Sukhothai, Hat Yai, U-Tapao (Pattaya), and internationally to 8 destinations such as Maldives, Singapore, Siem Reap, Phnom Penh, Luang Prabang, Hong Kong, Chengdu, and Chongqing. The recently resumed routes 'Samui - Chengdu' and 'Samui - Chongqing' are specifically tailored to accommodate Chinese tourists, operating an average of 2-3 flights per week.”
Furthermore, Bangkok Airways is enhancing its strategy of collaboration with airline alliance partners. Presently, the company has 28 codeshare partners and over 70 interline partners. This year, Bangkok Airways plans to establish agreements with approximately 2 additional airlines to expand its route network and enhance passenger convenience, particularly in supporting international travel demand. Additionally, the company stresses the importance of efficiently managing its fleet strategy, with an anticipated total fleet of 25 aircraft for 2024.
To stimulate both domestic and international travel, Bangkok Airways has implemented strategies to boost sales by offering enticing promotional highlights throughout the year. Furthermore, the company is planning to revamp its website to improve information access and seat reservations via mobile devices, with implementation scheduled to begin in mid-2024.
Puttipong emphasized the company's commitment to sustainable business practices in 2024 by advancing its ESG (Environmental, Social, and Governance) policy across all business processes. This includes initiatives like the 'Low Carbon Skies by Bangkok Airways' campaign, focusing on efficient aircraft fuel usage, carbon footprint assessments, waste management and value (Waste to Value), resource efficiency promotion, and alternative energy adoption. The company also prioritizes social sustainability, good governance, safety culture promotion, sustainable community development, ethical business conduct, quality product and service delivery, and enhancing customer experience.
Anawat Leelawatwatana, Senior Vice President for Finance and Accounting at Bangkok Airways PLC, provided insights into the company's financial performance in 2023. The company achieved a Revenue per Available Seat Kilometer (RASK) of 5.41 baht, with total expenses at 5.14 baht per ASK, resulting in a profit margin of 0.27 baht per ASK. The overall EBITDA for 2023 was 4,782 million baht, with an EBITDA margin of 23%, and a net profit of 3,108 million baht on the consolidated financial statements. The debt-to-equity ratio decreased significantly in 2023.
Anawat highlighted significant business opportunities for 2024, especially in airport-related businesses due to increased flight traffic at Suvarnabhumi Airport. This includes Bangkok Air Catering (BAC), BFS Ground, and BFS Cargo, which have shown promising revenue performances.
Amornrat Kongsawat, Vice President of Sales and Acting Vice President of Marketing at Bangkok Airways PLC, outlined the company's sales and marketing strategies for 2024. This includes allocating sales channels, expanding international sales, collaborating with partners, executing communication and marketing campaigns, and enhancing the overall customer experience through various initiatives and partnerships. Bangkok Airways is also focusing on creating unique experiences for passengers through collaborations and special promotions, aligning with the 'Redefine Boutique Experience' concept and engaging in sports tourism campaigns under the 'Bangkok Airways Boutique Series 2024'.
