Improving Q3 Financial Results For Thai Airways International

Thai Airways International announced its third quarter operating results for 2015 with an operating loss of US$117.7 million/THB 4,239 million. This represents a year-on-year improvement of US$27.8 million/THB 1,002 million or 19.1%) compared to last year. For the first nine months of 2015, aviation operating losses reached US$126 million/THB 4,536 million. This shows an improvement of 72% compared to the same period of 2014. 

Thai Airways President Charamporn Jotikasthira, indicated that the company has been proceeding with the transformation plan since the second quarter of 2015. During the third quarter of 2015, Thai decommissioned one aircraft (Airbus A330-300) and took delivery of two aircraft (Boeing 787-8 and Boeing 777-300ER), bringing the total fleet to 95 aircraft.

Thai also implemented the Mutual Separation Plan (MSP) for employees in general and a Golden Handshake scheme for flight attendants to manage manpower to improve personnel and cost structure and reduce overall cost in the long run. A total of 428 staff participated in the first phase of the program, which took effect on 1 July 2015.

During the third quarter of 2015, there were 8.99 million passenger arrivals and departures through Suvarnabhumi Airport, an increase by 20.3% over last year with the recovery of the Thai tourism sector, economic growth in several countries, and increased Chinese tourist travel to overseas destinations. However, the bomb in Bangkok city centre on August 17 translated into a 25.2% decrease in passenger travel in September, compared to August. During the third quarter, a total of 5.15 million passengers flew Thailand national carrie’r, an increase of 8.8% compared to the same period last year with a cabin load factor that averaged 74.4%, up from 71.1% last year.

Thai Airways Int’l and its subsidiaries’ financial performance for the third quarter of 2015 resulted in an operating loss of US$77.4 million/THB 2,786 million, a 27.3% improvement over the same period last year due mainly to a 6.1% expense decrease primarily from fuel cost. Total revenue reached US$1.23 billion/THB 44,342 million, a 4.4% decline from last year mainly due to a 3.3% reduction in passenger and excess baggage revenue. The main reason for the decrease in revenue was the drop in average yield, down by 6.9% .

The airline indicated to suffer losses from the weakening of the Thai Baht by 8%-10% against major currencies.