Despite high airfare costs, Thai Air Asia X reports a successful year

[snoop1130]

 

Passengers should brace for continued high airfares as airlines deal with the challenges of a plane shortage, increased labor costs, and a limited supply of spare parts, all limiting their capacity to meet the increased demand in travel.

 

According to a report by ING Bank NV, these difficulties are a result of multiple issues in the global aviation industry's supply chain. Problems with Boeing's production and defects in engines made by Pratt & Whitney have resulted in a reduced number of available aircraft, which is hindering the sector's recovery despite the growing demand for air travel.

 

Airbus and Boeing are struggling with a backlog of orders, leading to an increased demand for used planes. This situation is pushing up leasing rates, especially for widely used single-aisle models such as the Boeing 737 and Airbus A320 and 321. A lack of skilled workers is also causing delays in the retrofitting and refurbishing of older planes.

 

Air carriers globally including Singapore Airlines, Qantas, and Air New Zealand are being forced to reevaluate their growth plans and cut flights due to these challenges. These airlines have experienced delays in aircraft delivery and unexpected maintenance problems.

 

Ticket prices are anticipated to remain high and could potentially increase by 15-20% above inflation in early 2024 in Europe. Despite the increased costs, people are still prioritizing air travel.

 

Other insights from the report predict that factors such as delivery delays, increased maintenance, extreme weather, geopolitical tensions, and labor disputes will negatively impact airline profitability. Notably, despite an awareness of the environmental damage caused by aviation emissions, many people, especially younger travelers, are not willing to decrease their air travel.

 

Even with these industry-wide challenges, Thai AirAsia X is expected to carry nearly 1 million passengers this year due to strong performance on its routes to Japan. They are also planning to resume direct flights to Nagoya, which were suspended during the pandemic, and operate 36 weekly flights to four Japanese cities.

 

By 2024, Thai AirAsia X aims to carry 1 million passengers, reaching 90% of their 2019 passenger levels, with a load efficiency of 85%. The airline has also exceeded 1 billion baht in operational profits for the first quarter of this year, representing its first post-pandemic profit. They hope to expand their current fleet of seven A330s to fifteen aircraft by 2025.

 

File photo for reference only. Courtesy of Google

 

-- 2024-05-17

 

Get our Daily Newsletter - Click HERE to subscribe

[hotchilli]

16 hours ago, snoop1130 said:

Passengers should brace for continued high airfares as airlines deal with the challenges of a plane shortage, increased labor costs, and a limited supply of spare parts, all limiting their capacity to meet the increased demand in travel.

What?

[natway09]

High prices contributing to higher profits, ,,,,,,,,,well I never !!

[bamnutsak]

23 minutes ago, natway09 said:

High prices contributing to higher profits, ,,,,,,,,,well I never !!

 

Singapore Airlines did so well that the employees are getting an eight-month bonus.

 

 

 

Singapore Airlines hands out 8 months' bonus following record annual profit

 

https://www.channelnewsasia.com/business/singapore-airlines-scoot-employees-get-nearly-8-months-bonus-4340801