News
THAI returns to operating profit in third quarter
November 17th 2017
Thai Airways International’s (THAI’s) financials managed to return to an operating profit in the third quarter through to September 30, although exchange rate losses and other special items dragged down the carrier’s results to a show heavier net loss (1,814 million baht; US$55 million) than in the year-ago period. Read More »
THAI and its subsidiaries produced an operating profit of 739 million baht in the third quarter, a steep improvement from last year’s loss of 836 million baht in the corresponding period. The Star Alliance member said the reversal was the result of the successful implementation of its business transformation plan.
THAI’s total revenues in the three months to September amounted to 46,928 million baht, a significant 6.3% year-on-year increase, which the flag carrier attributed to an increase of passenger and excess baggage revenue by 2,470 million baht (+ 6.9%) and a 14.9% growth in passenger traffic.
THAI’s passenger yield, however, dropped another 7.5%, which the carrier blamed on “intense price competition”.
Embattled THAI appears to be doing a lot of things right. The airline improved its aircraft utilization by 4.3% from 11.6 hours to 12.1 hours when compared to the same period last year. ASKs grew 7.9% and RPKs 14.9%, resulting in a much better load factor at 78.2%, up from 73.5% last year.
THAI told Orient Aviation earlier this month that it expects to post a net profit again in 2018.
Separately but nonetheless related, Thailand’s ‘boutique’ Bangkok Airways on Thursday posted 157 million baht net loss for the third quarter, reversing a 681 million net profit in the year-ago quarter. Bangkok Airways corroborated THAI’s story; it, too, felt the impact of intense pricing competition and foreign exchange losses.
