News
THAI reduces losses
August 19th 2016
Helped largely by a 21% drop in fuel costs, Thai Airways International (THAI) on Monday reported a second quarter net loss of 2.92 billion baht ($84 million), down sharply from a 12.76 billion baht loss in the same period last year. Read More »
The flag carrier posted an operating loss of 1.78 billion baht for the quarter, down 62%, as revenues slid 1.3% to 41.2 billion baht. THAI booked an impairment loss of 1.75 billion baht on assets due to additional provisions for decommissioning aircraft which were held for sales, it said. Passenger yield was stable at 2.38 baht.
The airline, under the leadership of Charamporn Jotikasthira, is into the second phase of a transformation plan to return it to long lost profitability. "We have been restructuring for one year and eight months. The first two years are the most difficult as we need to get rid of fat and costs," Charamporn said.
The former Stock Exchange of Thailand president told Orient Aviation in June that the goal for this year is a load factor greater than 80%, to be achieved with more rational capacity management, more efficient sales and marketing and better network planning. “Above 80%, and we’ll make a profit for sure,” he said, but admitted “this year will be a tough one”.
THAI will take delivery of the first of twelve on-order A350s on August 29. The new aircraft will be used on crew familiarization flights between Bangkok, Phuket and Chiang Mai from September 4 through to September 15. Thereafter, the A350 will be deployed on the Bangkok-Melbourne route.
In other Thai aviation updates, Thai VietJet Air will begin domestic services on September 15. The LCC initially will fly its two A320s between its Suvarnabhumi base and Chiang Mai and Phuket, as well as on the Chiang Rai-Phuket route.
