TG’s first-quarter profit slumps

BANGKOK, 17 May 2019: Thai Airways International Public Company Limited (THAI) reported a Q1 net profit of THB456 million down 83.7% when compared with the same period last year.

Profit fell by THB2,281 million the airline reported. Profit per share was THB 0.20, THB1.04, or 83.9% lower than last year.

Revenue during the Q1 amounted to THB 49,791 million, down 6.9% blamed mainly on the appreciation of the Thai Baht against major revenue currencies, intense competition and a decline in passenger traffic.

Expenses increased by THB989 million or 2% resulting from the change in the estimated residual value of aircraft and engines and higher lease of aircraft and spare part expenses.

THAI president, Sumeth Damrongchaitham, commenting on the disappointing Q1 results said that THAI has concentrated on ancillary revenues under its so-called “Montra” project which called for urgent reconstruction programme as well as other operational strategies implemented since the beginning of the year,

“The ultimate goal to ensure THAI can escape from the cycle of problems to ensure the stability through the future, which has significant actions such as – integration management between THAI and THAI Smile, commercial management to seek out for more revenues from ancillary and non-air business,” he reported.

During the first quarter, THAI and its subsidiaries had 103 aircraft in the fleet, one aircraft less than the same period last year.

Aircraft use was 12.5 hours, which was higher than 11.9 hours of last year. Production traffic (ASK) decreased by 2.8%, while passenger traffic (RPK) decreased by 3.2%. 

Average cabin factor was 80.3% down than last year’s 80.6% with 6.29 million passengers carried representing a 0.6% increase from the previous year.

THAI and its subsidiaries’ registered revenue of THB 49,791 million, down by THB 3,675 million or 6.9%, resulting from the decrease in both passenger and freight revenue. 

In addition, there was decreased average passenger yield due to intense competition and the appreciation of Thai Baht against major currencies.

However, revenues from other activities increased by 6.2%.  Expenses stood at THB50,619 million, an increase of THB989 million or (2%).

One-time expense in this quarter included THB213 million impairment of assets and aircraft, THB273 million gain on change in ownership interest in NOK Airlines PCL and THB1,366 million gain on foreign currency exchange which was mainly from balance sheet revaluation. 

As of March 31, 2019, total assets were THB267,277 million, a decrease of THB1,444 million (0.5%) from December 31, 2018. Total liabilities totalled THB243,700 million, which was a decrease of THB4,565 million (1.8%) from December 31, 2018. Shareholders’ equity totalled THB23,577 million, an increase of THB3,121 million (15.3%) from December 31, 2018.