THAI shaves losses in Q3

BANGKOK, 14 November 2016: Thai Airways International PCL including all of its subsidiaries, announced a third quarter operating loss of THB836 million.

The company said it was an 80.3% improvement on the loss incurred in the same period last year.

During the third quarter, this year, impairment loss of assets and aircraft totalled THB624 million.

Thai 777-300ER Artwork K65404However the company gained on foreign currency exchange to the tune of THB120 million resulting in the net loss of THB1,591 million.

The company continues with its transformation plan, which recorded a THB4,560 million operating profit for the first nine months. In contrast, THAI suffered a loss of THB4,536 million, over the same period in 2015.

Commenting on the results, THAI president, Charamporn Jotikasthira, said THAI continued with its second phase of its transformation plan building on the airline’s strengths in various areas and using information technology to improve revenue management and other services such as fare management system to respond rapidly to competitive fares in the market place. It is also working on improving route network connectivity.

The airline’s management claims it will lead to “sustainable growth” in 2017.

In the third quarter, THAI took delivery of one Airbus A350-900XWB in August and decommissioned a leased Boeing 777-200. The airline has a fleet of 94 aircraft in service down one aircraft from a year ago. It carried 5.50 million passengers, representing a 7.6% increase.

Losses were reduced in the third quarter by 80% mainly due to cuts in fuel expenses that decreased by THB5,504 million (33.6%), resulting from drop in jet fuel prices by 15.3%.

inside no 5.1Non-fuel operating expenses increased by 6.7% due to more traffic production, maintenance and overhaul expenses such as higher engine maintenance costs and the need for more  engine spare parts compared to the same period last year.

The decreases in fuel surcharge resulted in a reduction of passenger and excess baggage revenue by THB919 million (2.5%). Freight and mail revenue increased by THB189 million (4.3%).

THAI and its subsidiaries had THB624 million impairment loss on assets and aircraft expenses, but enjoyed a THB120 million gain on foreign currency exchange.

Consequently, THAI and its subsidiaries reported a net loss of THB1,591 million, a decrease of THB8,303 million (83.9%) from last year. Loss attributable to owners of the parent company amounted to THB1,601 million.  Loss per share was THB0.73 compared to THB4.54 last year.