BANGKOK – Thailand’s aviation sector has witnessed a remarkable resurgence, achieving record-breaking profits in 2023, largely driven by a resurgence in the country’s tourism industry. Airlines and tourism-related businesses listed on the Stock Exchange of Thailand (SET) experienced a notable shift from previous losses to substantial profits.
The sector’s total profit soared to 31.4 billion baht, reaching 40 billion baht when factoring in the operations of Airports of Thailand (AOT). This turnaround marks a significant rebound from the 21 billion baht loss recorded in 2022, inclusive of AOT’s figures.
Leading the recovery charge, Thai Airways reported unprecedented profits of 28 billion baht, its highest in history, which starkly contrasts with the 12 billion baht loss before the COVID-19 pandemic in 2019. Despite achieving a revenue of 161.07 billion baht in 2023, the airline has yet to surpass its 2019 revenue figures. In response, Thai Airways has announced plans for a capital increase through additional stock issuance, aiming to restore shareholders’ equity to positive levels by the year’s end, with hopes to resume trading its shares on the stock market by 2025.
Bangkok Airways also marked a profitable year with earnings exceeding 3.1 billion baht, credited to the industry’s recovery, further bolstered by strategic partnerships such as the one with Singapore Airlines. This collaboration, coupled with code-share agreements with 28 other airlines, seeks to facilitate easier travel to and from Thailand and neighboring regions.
Thai AirAsia witnessed a significant turnaround, recording a profit of 2.81 billion baht in the final quarter of 2023, leading to a total profit of 465 million baht for the year. The airline’s CEO anticipates a robust year ahead, fueled by the return of Chinese tourists and the establishment of new flight routes. Thai AirAsia aims to transport 21 million passengers in 2024, targeting a 90% passenger load factor and a 20 to 23% increase in revenue, supported by an expanded fleet of 60 aircraft by the end of the year.
Officials attending the developments have expressed optimism for the future of Thailand’s aviation industry, emphasizing the crucial role of tourism in driving the sector’s recovery.
