Aviation/Bangkok Airways

Editorial staff

SET-listed Bangkok Airways Plc (BA) expects to earn its revenue close to 18 billion baht and accomodate 4.5 million passengers in 2024.

Puttipong Prasarttong-Osoth, BA's president, revealed that the overall global aviation and tourism industry, including Thailand, has been continuously recovering. The International Air Transport Association (IATA) has summarized that global airline revenue in 2023 was at 107% of the pre-Covid level (2018). It predicts a recovery in the global aviation industry and the Asia-Pacific region in 2024, with an estimated increase of 2.53 billion passengers from 2024 to 2038.

For Thailand, domestic passenger statistics in 2023 were at 74% of the pre-Covid level, with domestic travel at 80% and international travel at 68% of 2018 levels. Key factors contributing to this recovery include government initiatives such as visa exemptions for certain nationalities, promoting secondary city tourism, and organizing events to attract tourists to Thailand.

“Bangkok Airways' operational goals for 2024 include operating 48,000 flights with an average load factor of 85%, accommodating 4.5 million passengers, and generating passenger revenue of 17.8 billion baht,” Mr Puttipong said.

The average ticket price per flight is estimated at around 3,900 baht per seat. Additionally, there is a trend of increased advance seat reservations for 2024 compared to the same period in 2023, with a growth of approximately 14%. These reservations are distributed across different route groups, with 63% for Samui routes, 28% for domestic routes, 8% for CLMV (Cambodia, Laos, Myanmar, and Vietnam) countries, and 1% for international routes.

Currently, Bangkok Airways operates flights to 20 destinations, including 12 domestic destinations such as Bangkok, Samui, Chiang Mai, Phuket, Krabi, Trat, Lampang, Mae Hong Son, Sukhothai, Hat Yai, U-Tapao (Pattaya), and internationally to 8 destinations including Maldives, Singapore, Siem Reap, Phnom Penh, Luang Prabang, Hong Kong, Chengdu, and Chongqing.

The routes “Samui - Chengdu" and "Samui - Chongqing" are among the latest resumed routes to accommodate Chinese tourists, operating an average of 2-3 flights per week.

The airline continues to enhance its strategy of cooperation with airline alliance partners. Currently, it has 28 codeshare partners and over 70 interline partners.

The company plans to establish agreements with approximately 2 additional airlines this year to enhance its route network and convenience for passengers, especially in supporting international travel demand.

Additionally, the company emphasizes the importance of efficiently managing its fleet strategy. For 2024, Bangkok Airways anticipates having a total fleet of 25 aircraft.

Furthermore, it plans to revamp Bangkok Airways website to facilitate information access and seat reservations via mobile devices, with implementation scheduled to commence in mid-2024.

“To emphasize the company's commitment to sustainable business practices, in 2024, Bangkok Airways is advancing its ESG (Environmental, Social, and Governance) policy across all business processes,”he said

This includes initiatives such as the 'Low Carbon Skies by Bangkok Airways' campaign, which encompasses plans for efficient aircraft fuel usage, carbon footprint assessments, waste management and value (Waste to Value), resource efficiency promotion, and alternative energy adoption.

Anawat Leelawatwatana, the company’s senior vice president for finance and accounting, said that, in 2023 the company achieved a Revenue per Available Seat Kilometer (RASK) of 5.41 baht, with total expenses at 5.14 baht per ASK, resulting in a profit margin of 0.27 baht per ASK. Major expenses included fuel costs, aircraft maintenance, employee salaries and benefits, as well as passenger-service-related costs for Bangkok Airways' full-service offerings.

The overall earnings before interest, taxes, depreciation, and amortization (EBITDA) of the company for the year 2023 amounted to 4.78 million baht, with an EBITDA margin of 23%.

Additionally, the company recorded a net profit of 3.1 billion baht on the consolidated financial statements.

“One of the significant business opportunities for our company in 2024 is the operations related to businesses associated with airports, which are showing a growing trend due to increased flight traffic at Suvarnabhumi Airport. This includes Bangkok Air Catering (BAC), which served 23 airline customers in 2023, generating revenue at 81% of the pre-Covid-19 level in 2022,” Mr Anawat said.

Additionally, BFS Ground, servicing a total of 90 airline customers, achieved revenue at 93% of the 2022 level. Meanwhile, BFS Cargo served a total of 86 airline customers.

Amornrat Kongsawat, the company's vice president of sales and acting vice president of marketing, revealed that in 2024, the airline plans to allocate 30% of its sales channels to websites and 70% to other channels such as BSP Agents, Online Travel Agents, Call Centers, etc.

Furthermore, 57% of sales are expected to come from international point of sales, with aggressive sales expansion strategies planned for foreign markets through the expansion of General Sales Agents (GSA) to cover new market opportunities, including South East Asia, Saudi Arabia, Latin America, and Türkiye. Currently, Bangkok Airways has a total of 26 GSA offices worldwide."

In addition, the company has also executed communication strategies and marketing campaigns to enliven tourism throughout 2024 with the concept 'Redefine Boutique Experience', catering to the diverse lifestyles of its target audience.

Also, Bangkok Airways has prepared various activities throughout the year, including sports tourism campaigns under the 'Bangkok Airways Boutique Series 2024', partnering with a variety of businesses to enhance service capabilities and provide special privileges and benefits to passengers, creating unique experiences from lounges to tourist destinations to meet travellers’ expectations.