AAV’s Net Loss Jumps to THB2.4 Billion in 1Q22 as Sales and Service Costs Increase by over 50%

Asia Aviation Public Company Limited (SET: AAV) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
(2,370.60) (1,864.58)
Earning Per Share
(0.2107) (0.3845)
% Change (-27.14%)

In 1Q22, AAV reported a net loss of THB2,370.6 million, up from THB1,864.6 million in 1Q21, despite total revenues growing by 55% to THB2,091.0 million. Basic and diluted loss per share were THB0.2107.

An increase in total revenue was primarily from sales and services of to THB1,786.5 million or increased by 56% compared to the same period last year as the COVID-19 pandemic situation has improved, leading to the easing of COVID-19 restrictions and stimulating domestic travel activities. As a result, the number of passengers carried was 1.45 million, an increase of 48% over the same period last year, which was higher than the 34% growth in seat capacity.

However, the cost of sales and services has expanded by 54% to THB4,335.8 million, from THB2,816.2 million in 1Q21. Primarily, maintenance and overhaul expenses increased mainly from the amortisation of aircraft maintenance reserves from sale and leaseback transactions. At the same time, fuel costs surged by 103% from
1Q21, along with the higher fuel consumption and oil prices. Ramp and airport operation expenses also increased in line with operating flights. Furthermore, the selling and administrative expenses increased by 21%, in part from sales commission and distribution, as well as related fees stemming from the company’s fundraising.