Thai AirAsia is setting goals for next year in line with tourism growth and revenue from the international market increasing to 60%, up from 40%, aiming for total passengers of at least 20 million.
Santisuk Klongchaiya, chief executive of Thai AirAsia (TAA), said overall passengers this year should total 10 million, which is close to the number of foreign arrivals expected to arrive in Thailand in 2022.
As the airline plans to use all 53 of its jets for full service next year, the number of passengers should double to 20 million, driven by full resumption of all international routes except China, said Mr Santisuk.
He said its 43 aircraft currently in operation have a utilisation rate of 12 hours per day in December, higher than the average rate of nine hours this year. The improving utilisation rate this month is mostly derived from soaring travel demand during high season, which also helped drive the yearly average load factor to 81%.
"This year, Thai AirAsia took the lead in domestic routes with a market share of 32%, leading second place by 10 percentage points," said Mr Santisuk.
He said the number of domestic flights was around 700 per week, while international flights tallied 300 per week.
If the airline increases the proportion of international flights to 40% next year, the revenue contribution from those routes would be raised to 60% as they typically earn more income from higher airfares, said Mr Santisuk.
He said challenging factors to watch next year include operational costs, as fuel prices are affected by the war in Ukraine.
Mr Santisuk predicted continued volatility for fuel prices, with the price hovering around US$100 per barrel, not reaching a floor of $50 as occurred in 2020. Average airfares next year might increase by 20% as the airline cannot absorb fuel costs, he said.
A recession next year might impact spending power as people will refrain from long-haul travel and opt for short-haul destinations instead, said Mr Santisuk.
As a result, he said low-cost carriers offering mainly routes to neighbouring countries could benefit the most.
Mr Santisuk said TAA might record a profit in 2023 for the first time in three years if China starts to reopen with fewer restrictions, while Hong Kong and Macau could lift all travel restrictions.
"China is the last piece of the jigsaw still missing. But with 10 jets left parked in the fleet we should be ready to return to China as soon as travel restrictions are lifted," he said.
The airline this week announced its latest overseas route from Bangkok to Taipei, with four flights per week. TAA hopes to secure an 85% load factor in the first quarter of 2023 after launching its inaugural flight on Jan 20.
