News
THAI narrows second quarter loss
August 17th 2018
Thai Airways International (THAI) continues to struggle, although somewhat less. Read More » In the second quarter ended June 30, the government-controlled airline reported a net loss of THB3.1 billion (US$95 million), an improvement on the THB5.2 billion net loss posted in the corresponding period in 2017. The carrier’s yield was down 0.9%, to THB2.10 (US$6.6 cents).
Through to June 30, THAI achieved revenues totalling THB47.24 billion, a 4.6% year-on-year increase achieved through 0.7% higher passenger revenues and 13.9% stronger mail and freight earnings.
THAI also gained THB655 million from the sale of its hotel business and THB632 million from other property sales during the second quarter.
The airline said the quarterly net loss was largely the result of high jet fuel prices and intense competition.
Following the “unsatisfactory” result, the THAI board is urging the airline’s management team to achieve greater synergies with its budget subsidiaries, Thai Smile and Nok Air, The Nation reported on Wednesday, citing THAI sources.
The airline’s poor financial performance also impacts its fleet renewal programme. THAI was due to place a wide body order last December, but the board did not approve the proposal because of the airline’s dire financial state. This position will hardly have changed now.
THAI is hoping to get approval to place orders for 17-23 Airbus and Boeing aircraft to modernize and simplify its fleet. The Star Alliance member now operates ten aircraft types: 15 A330-300s, 12 A350-900s, six A380s, 32 B777s (-200s, -200ERs, -300s and -300ERs), 10 B747-400s and eight B787s (six -8s, two -9s).
After 18 months without a permanent leader, THAI announced in May that Sumeth Damrongchaitham is the new president and CEO of the airline. He is scheduled take up the position next month following the retirement of acting president, Usanee Sangsingkeo.
