THAI reduces operating losses

BANGKOK, 3 March 2022: Thai Airways International and its subsidiaries reduced operating losses by 44% or THB15,712 million to declare a loss of THB19,702 million, according to its operational performance results for the year ended 31 December 2021. The result excluded one-time transactions.

When one-time transactions are taken into account, THAI and its subsidiaries reported a net profit totalling THB81,525 million. It consisted of profits following the Rehabilitation Plan, such as profit from debt restructuring, sale of unused properties and organisational restructuring. Consequently, THAI and its subsidiaries reported a THB55,113 million net profit for the year ending 31 December 2021.

The total revenue was THB23,747 million, lower than last year by THB24,684 million or 51%, mainly due to a decline in both passenger and cargo revenue recorded at THB24,599 million baht or 59.9% and a decrease of THB1,545 million from other services.

However, THAI reports an increase in other incomes of THB1,460 million due to revenue from offsets for maintenance and refurbishment of engines.

Total expenses amounted to THB43,449 million, which was THB40,396 million or 48.2% lower than the previous year, mainly due to variable operating expenses and cost reduction programme implemented under the airline’s rehabilitation plan and business reorganisation. However, this was insufficient to offset decreasing revenue.

As of 31 December 2021, the total assets of THAI and its subsidiaries were THB161,219 million, which decreased by THB48,078 million or 23% compared to the figure as of 31 December 2020. The total liabilities were THB232,470 million, a decrease of THB105,492 million or 31.2% from 31 December 2020. Shareholders’ equity amounted to -THB71,251 million, which is a negative decrease of THB57,414 million compared to the figure as of 31 December 2020, due to THAI and its subsidiaries’ net profit in 2021.

THAI is seeking a THB25 billion loan from financial institutions for the implementation of its rehabilitation plan in 2022. The loan contract signing should occur this month, March 2022.