Thai Airways could lose blue chip status over ballooning losses

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Thai-A380Thailand’s national carrier Thai Airways International may soon be kicked out of the stocks listed in the SET 50 index of the Stock Exchange of Thailand in the latter half of this year, brokerage houses said.

Kim Eng Securities (Thailand) noted that Thai Airways is likely to show a bigger loss than expected this year. At an analysts meeting last week, the airline estimated that it would show $108 million loss in the first quarter.

However, Kim Eng said the actual loss could be 20 per cent higher. The airline will face the low season in the second quarter, while political conflicts would dent traveling demand among Asian travelers who account for 51 per cent of the company’s revenue.

Meanwhile, analysts were told that Thai Airways plans to decommission two more aircraft, to bring the total to 15 this year. It also announced a cut in the investment budget by 28 per cent to $554 million and the layoff of up to 3,000 employees in the next three years.

The SET 50 index is calculated from the stock prices of the top 50 listed companies in terms of market capitalisation, high liquidity and compliance with requirements regarding the distribution of shares to minor shareholders.

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Reading Time: 1 minute

Thailand’s national carrier Thai Airways International may soon be kicked out of the stocks listed in the SET 50 index of the Stock Exchange of Thailand in the latter half of this year, brokerage houses said.

Reading Time: 1 minute

Thai-A380Thailand’s national carrier Thai Airways International may soon be kicked out of the stocks listed in the SET 50 index of the Stock Exchange of Thailand in the latter half of this year, brokerage houses said.

Kim Eng Securities (Thailand) noted that Thai Airways is likely to show a bigger loss than expected this year. At an analysts meeting last week, the airline estimated that it would show $108 million loss in the first quarter.

However, Kim Eng said the actual loss could be 20 per cent higher. The airline will face the low season in the second quarter, while political conflicts would dent traveling demand among Asian travelers who account for 51 per cent of the company’s revenue.

Meanwhile, analysts were told that Thai Airways plans to decommission two more aircraft, to bring the total to 15 this year. It also announced a cut in the investment budget by 28 per cent to $554 million and the layoff of up to 3,000 employees in the next three years.

The SET 50 index is calculated from the stock prices of the top 50 listed companies in terms of market capitalisation, high liquidity and compliance with requirements regarding the distribution of shares to minor shareholders.

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