Thai AirAsia reports THB841m Q1 profit amid Middle East tensions
Asia Aviation reported higher first-quarter revenue and THB840.6 million net profit, while saying Q2 will face pressure from aviation fuel costs.
- Asia Aviation, Thai AirAsia's parent company, reported a Q1 net profit of THB 840.6 million, a 39% decrease from the previous year.
- The profit decline was influenced by the geopolitical conflict in the Middle East, which began late in the quarter, and a significant foreign exchange loss.
- The result was supported by strong passenger growth, with 6.2 million passengers carried (an 11% increase), and effective cost management.
- The company expects the full impact of the conflict on fuel prices to hit in Q2, leading to planned fare hikes and a reduction in seat capacity.
Asia Aviation Public Company Limited (AAV), the majority shareholder in Thai AirAsia, reported first-quarter 2026 sales and service revenue of THB13.5298 billion, up 2% from the same period last year, supported by 6.2 million passengers carried, up 11%, as tourist travel continued to recover during the high season.
Average fares fell by 6%, while net profit stood at THB840.6 million, down 39%, amid geopolitical conflict in the Middle East that emerged in late February.
However, effective cost management reduced cost per available seat kilometre (CASK) by 2% to THB1.69, supported by fuel cost and maintenance cycle management, as well as lower foreign airport fees as the airline placed greater emphasis on domestic flights.
The airline also maintained efficient aircraft utilisation, averaging 12.5 hours per aircraft per day, from a total operating fleet of 58 aircraft in the quarter.
The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of THB3.7339 billion, representing an EBITDA margin of 28%, and a strong core operating profit of THB1.6517 billion.
It recorded a foreign exchange loss of THB1.0138 billion from the depreciation of the baht, leaving net profit at THB840.6 million.
Phairat Pornpathananangoon, chief executive officer of AAV and Thai AirAsia, said the first-quarter performance clearly reflected the strength of the AirAsia brand.
The company was still able to deliver good operating results, with an overall passenger load factor of 88%.
The domestic market recorded a load factor of 89% and the highest domestic market share at 42%, while the international market had a load factor of 85%.
He said this was in line with the strategy of proactively adjusting the business plan by focusing on markets with high travel demand and strong profitability, such as Vietnam, ASEAN countries and Fifth Freedom routes, including the new Hanoi–Luang Prabang route.
The company also benefited from the Chinese market during the Chinese New Year period in the past quarter.
“In the first quarter, we have not yet seen much impact from the sharp increase in oil prices, because the conflict occurred late in the quarter and the tourism season was continuing from the end of the year. Oil prices will begin to be reflected in the second quarter, when management will become more challenging. We have therefore adjusted our working model, focusing on strict management of costs and risks so that we are ready for every situation, while maintaining profit margins and financial strength,” Phairat said.
For the second quarter, the company expects the aviation industry to remain severely affected by the global situation and by aviation fuel costs, which have risen more than threefold because of international geopolitical conditions.
The company, therefore, needs to raise fares to reflect part of its real operating costs and preserve financial liquidity.
It has reduced seat capacity for May–June by 20% compared with the same period last year, in line with the impact and the seasonal slowdown in travel.
