54 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT Revenue Due to the resurgence of COVID-19 cases in Thailand and the Company’s compliance with the regulation, Thai AirAsia suspended the operation temporarily between 12 July and 2 September 2021. Total revenues in 2022 were Baht 18,290.8 million, up 306% from last year as the pandemic subsided, resulting in an accelerating recovery in tourism, especially after 1 July 2022 when the government relaxed its COVID-19 curbs and fully opened the borders. Consequently, Thai AirAsia carried 9.95 million passengers during the year, increasing 240% from last year, leading to an increase in ASK of 243% and a seat capacity increase of 176%. The domestic capacity has recovered by 63% compared to the pre-pandemic level, marking Thai AirAsia’s leadership in the domestic market. On the other hand, the international capacity excluding China has recovered by 31% compared to the pre-pandemic level, led by flights to ASEAN and South Asia, particularly, Vietnam, Malaysia, Singapore, and India. Moreover, Thai AirAsia continued its remarkable on-time performance (“OTP”) at 92%. • Revenues from sales and services were reported at Baht 17,553.3 million, increasing by 358% compared to the same period last year, attributable to the total passengers of 9.95 million and a healthy average fare of Baht 1,434 per passenger, rising by 32% from the reinstatement of more international flights and the imposition of fuel fluctuation fee for domestic flights. Thai AirAsia utilised an average of 29 operating aircraft in 2022 compared to an average of 15 aircraft in 2021, with an elevated utilisation rate of 9.6 hours per aircraft per day, the highest rate since the pandemic. As a result, RASK was strongly posted at Baht 1.70, exceeding Baht 1.49 and Baht 1.28 in 2019 and 2021, respectively. ■ Ancillary income was Baht 3,318.7 million, increasing by 410% from last year, driven by the fees from checked baggage, seat selection, processing & service fees, and the resumption of international flights. Ancillary income accounted for 19% of revenues from sales and services, while ancillary income per passenger increased to Baht 334, up from Baht 222 in 2021. • Other income was Baht 737.5 million, increasing by 8% compared to last year, primarily due to the Baht 422.9 million gain from aircraft disposals in 4Q2022. Cost and Expense Total expenses were Baht 26,766.4 million, up 64% from the previous year, attributed primarily to higher fuel and maintenance and overhaul costs following the fuel price increase and activation of 17 aircraft in the year. • Cost of sales and services stood at Baht 23,533.5 million, rising by 111% compared to the same period last year, in line with the 172% increase in the number of flights flown. ■ Fuel costs were Baht 8,277.0 million, up 489% compared to last year, due to a 226% YoY higher fuel consumption, while the average jet kerosene price hiked 71% YoY to USD 124.4 per barrel. Currently, the Company is not in any fuel hedging position. ■ Staff costs were Baht 2,824.5 million, up 40% from the previous year due to a higher number of onboarded staff for flight operations, corresponding to increased operating aircraft. ■ Maintenance and overhaul costs were Baht 4,000.5 million, up 145% from the previous year due to higher maintenance costs to bring the grounded fleet back into service. The Company completed the redelivery of six aircraft in 2022 and is currently redelivering one more aircraft in 1Q2023. ■ Other costs of sales and services were Baht 8,431.5 million, increasing by 38% from last year, mainly from depreciation and amortisation of rights-of-use assets, while ramp and airport operation expenses rose from higher number of flights flown. • Selling and administration expenses (“SG&A”) were Baht 1,711.0 million, up 38% from the previous year, primarily due to the expenses paid to AirAsia Com Travel in response to the increase in sales. In 2022, SG&A was 10% of revenues from sales and services, down from 32% in the previous year, and narrowing the gap with 2019 at 8%. • Other expenses were Baht 1,521.9 million, decreasing by 61% compared to the previous year, mainly from a decrease in unrealised loss from the exchange rates. Overall, CASK significantly reduced to Baht 2.62 as opposed to Baht 4.51 in 2021. With fuel costs excluded, CASK ex-Fuel was Baht 1.81, a significant decrease from Baht 4.04 in 2021, driven by proactive cost management and a marked increase in ASK. Profit and Loss In 2022, the Company recorded a narrower EBITDA loss of Baht (1,277.9) million, a 59% improvement from last year, due to the recovery in operating performance. Finance costs were Baht 2,219.5 million, increasing by 17% mainly due to the interest expenses from TFRS 16 on lease liabilities and higher cost of funds. In comparison, the effective interest rate stood at 5.0%, increasing from 4.5% in 2021. Income tax revenue for the year was Baht 2,451.6 million, mainly from the carry forward of tax losses for the period. As a result, the Company reported a net loss for the period attributable to the equity holders amounting to Baht (8,030.0) million, compared to a loss of Baht (6,647.5) million in 2021, with basic and diluted loss per share of Baht (0.69), taking into account the recognition of 100% of Thai AirAsia’s net loss compared to 55% in the same period last year.
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