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THAI records 11% yield slippage in second quarter
August 18th 2017
Thai Airways International’s (THAI’s) turnaround efforts have stalled in the second quarter to June 30. Read More »
The Thai flag carrier and Star Alliance founding member has posted a net loss of 5.2 billion baht (US$157 million) for the second quarter, a 79% year-on-year increase, which wiped out its first quarter profit and tipped the carrier into a two billion baht first-half net loss.
THAI has attributed the loss to mounting costs, including 20% higher fuel expenses and foreign exchange losses, and intense competition that has caused a year-on-year yield slippage of 10.9%.
More positively, passengers are returning to the carrier. Traffic through to June 30 was up 21.9% on a 7.1% capacity increase, resulting in an average load factor of 78.5%, up by 9.5% year-on-year, which THAI said was the highest in a decade.
The Thai flag carrier has a fleet of 77 widebody aircraft and 20 A320s operated by its Thai Smile subsidiary. It has taken delivery of two A350s in the past three months and will receive another three of the type before year-end, as well as two B787-9s.
THAI will launch a four-weekly Suvarnabhumi-Vienna B777-300ER route on November 16, its first long-haul addition in more than two years.
Its Thai Smile offshoot continues dabbling with its network. Thai Smile will terminate its four-weekly Suvarnabhumi-Kota Kinabalu service on September 1, launched just four months ago.
