Thai AirAsia’s parent company has posted an operating loss of Bt1.37 billion ($42.7 million) in the first quarter of 2020, partly due to a fall in its total revenue.
This contrasts to an operating profit of Bt1.12 billion for the same quarter last year.
Asia Aviation’s revenue for the quarter ended 31 March fell 19.1% to Bt9.4 billion.
Expenses were up 2.6% to nearly Bt10.8 billion, partly due to a Bt2.1 billion cost incurred on what it classifies as “other expenses”.
Net loss for the three month period came in at just over Bt671 million, reversing the Bt497 million net profit made last year.
A document that was filed to the Stock Exchange of Thailand together with the results says the coronavirus pandemic has affected the company’s aviation business, as Thai AirAsia has had to suspend or reduce flights until the pandemic eases.
Thai AirAsia suspended international flights from 22 March until 31 May, and halted domestic flights between 1 April and 30 April.
Asia Aviation also noted that its consolidated total current liabilities have “exceeded” its consolidated total current assets “by [a] significant amount”. As a result, the company has decided to implement measures to secure additional sources of funding, revise its business plan, and reduce cost to better manage its liquidity.