Asia Aviation Public Company Limited (SET: AAV), the operator of Thai AirAsia (TAA) airline, reported total revenues of THB 8,224.8 million for the third quarter of 2026, marking a 17% year-on-year decline from THB 9,929.7 million in 3Q25. The company recorded a net loss of THB 2,367.9 million, widening 171% from a net loss of THB 874.7 million in 3Q25, resulting in a basic loss per share of THB 0.1843.
Key Financial Highlights
- Net Loss: THB 2,367.9 million (-171% YoY); core net loss stood at THB 2,255.4 million.
- Total Revenues: THB 8,224.8 million (-17% YoY); revenues from sales and services fell 13% YoY to THB 8,072.6 million.
- Earnings Per Share (EPS): Basic EPS dropped to THB -0.1843 compared to THB -0.0681 in 3Q25.
- Balance Sheet: Cash and cash equivalents decreased to THB 1,442.6 million; net interest-bearing debt-to-equity ratio increased to 1.5x.
To mitigate low-season volatility and high fuel prices, TAA maintained strict capacity discipline, curtailing seat capacity by 26% YoY to 4.41 million seats and Available Seat Kilometers (ASK) by 33%. Passengers carried fell 29% YoY to 3.36 million, reducing the overall load factor by 4 percentage points to 76%.
Domestically, passenger count dropped 25% YoY to 2.38 million following the temporary suspension of Suvarnabhumi Airport operations in August and September to consolidate flights at Don Mueang Airport, achieving a 78% load factor. Internationally, passengers declined 37% YoY to 0.99 million across a 33% capacity cut, delivering a 72% load factor.
Active yield management partially cushioned lower volumes, driving average domestic fares up 28% YoY to THB 1,590 and international fares up 26% YoY to THB 3,066. Consequently, overall average fare climbed 24% YoY to THB 2,023, while Revenue per ASK (RASK) expanded 29% YoY to THB 1.96.
Surging operational expenses absorbed top-line fare gains. Average jet fuel prices jumped 61% YoY to $137.5 per barrel, keeping fuel expenses elevated at THB 3,380.9 million (42% of sales revenue) despite a 33% drop in fuel consumption. Reduced flight activity and higher aircraft redelivery costs pushed Cost per ASK (CASK) up 40% YoY to THB 2.50, while CASK ex-fuel rose 36% YoY to THB 1.68.
Non-recurring items and non-cash impacts further weighed on earnings: AAV logged an unrealized foreign exchange loss of THB 140.6 million due to Thai baht depreciation, driving core net loss to THB 2,255.4 million. EBITDA turned negative at THB 409.8 million.
AAV closed 3Q26 with THB 1,442.6 million in cash and cash equivalents, down 61% from year-end 2025 due to operating losses. Excluding lease liabilities, interest-bearing debt expanded 29% to THB 15,633.2 million following new debenture issuances, elevating the net interest-bearing debt-to-equity ratio to 1.5x from 0.6x.
Management anticipates a strong 4Q26 recovery driven by high-season demand. TAA plans to reactivate suspended routes from BKK to major domestic destinations, scale its operating fleet from 42 to 54 aircraft by December, and expand domestic capacity by over 40% quarter-on-quarter to reclaim its 40% domestic market share target.
