Thai Airways reports $94 million loss in first quarter despite revenue surge

Thailand’s indebted national airline Thai Airways International suffered another net loss of 3.24 billion baht ($94 million) on revenue of 11.18 billion baht ($342 million) in the first quarter of this year despite its rehabilitation efforts and the recent recovery of its aviation business.

Still, revenue, excluding one-time transactions, marked a 155 per cent year-on-year increase.

In its financial performance report for the period, the airline said operational revenue had increased by 6.79 billion baht compared to the same period last year. However, it incurred expenditure inflicting a loss of 3.17 billion baht as higher fuel costs weighed heavily on the airline’s performance.

The carrier noted in the report that its loss, which also excludes one-time transactions, dropped by 54.7 per cent year on year.

Increased liabilities

As of March 31, Thai Airways and its subsidiaries had total assets valued at 162.42 billion baht, an increase of 1.25 billion baht from December 31, 2021, while total liabilities stood at 236.91 billion baht, an increase of 4.44 billion baht.

In the wake of a recovery in international and national air travel, demand for passenger seats had continually increased in the first five months of this year because the government had gradually eased Covid-19 travel restrictions, according to the report.

Higher passenger and cargo load

The report further said that Thai Airways and its subsidiary Thai Smile transported 10,238 passengers and 10,870 passengers on domestic and international flights, respectively, in the first 10 days of May, compared to 4,929 passengers and 269 passengers, respectively, in October last year. The figures showed a significant increase in the number of passengers after the government relaxed travel restrictions, the report added.

Goods transportation by its planes has returned to 50 per cent of the pre-Covid-19 level in 2019, the carrier said.

Thai Airways was forced to enter a court-supervised rehabilitation after reporting its worst-ever net loss of 141 billion baht in 2020 as a result of the Covid-19 pandemic. The company returned to a net profit of 55.1 billion baht in 2021 – the first net profit in five years – following restructuring efforts that included improving management efficiency and selling assets.

However, business recovery of Thai Airways – and the broader aviation sector – was most recently affected by the Ukraine war and China’s zero-Covid-19 policy with an unclear outlook for both fuel prices and tourism numbers.



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Thailand’s indebted national airline Thai Airways International suffered another net loss of 3.24 billion baht ($94 million) on revenue of 11.18 billion baht ($342 million) in the first quarter of this year despite its rehabilitation efforts and the recent recovery of its aviation business. Still, revenue, excluding one-time transactions, marked a 155 per cent year-on-year increase. In its financial performance report for the period, the airline said operational revenue had increased by 6.79 billion baht compared to the same period last year. However, it incurred expenditure inflicting a loss of 3.17 billion baht as higher fuel costs weighed heavily on...

Thailand’s indebted national airline Thai Airways International suffered another net loss of 3.24 billion baht ($94 million) on revenue of 11.18 billion baht ($342 million) in the first quarter of this year despite its rehabilitation efforts and the recent recovery of its aviation business.

Still, revenue, excluding one-time transactions, marked a 155 per cent year-on-year increase.

In its financial performance report for the period, the airline said operational revenue had increased by 6.79 billion baht compared to the same period last year. However, it incurred expenditure inflicting a loss of 3.17 billion baht as higher fuel costs weighed heavily on the airline’s performance.

The carrier noted in the report that its loss, which also excludes one-time transactions, dropped by 54.7 per cent year on year.

Increased liabilities

As of March 31, Thai Airways and its subsidiaries had total assets valued at 162.42 billion baht, an increase of 1.25 billion baht from December 31, 2021, while total liabilities stood at 236.91 billion baht, an increase of 4.44 billion baht.

In the wake of a recovery in international and national air travel, demand for passenger seats had continually increased in the first five months of this year because the government had gradually eased Covid-19 travel restrictions, according to the report.

Higher passenger and cargo load

The report further said that Thai Airways and its subsidiary Thai Smile transported 10,238 passengers and 10,870 passengers on domestic and international flights, respectively, in the first 10 days of May, compared to 4,929 passengers and 269 passengers, respectively, in October last year. The figures showed a significant increase in the number of passengers after the government relaxed travel restrictions, the report added.

Goods transportation by its planes has returned to 50 per cent of the pre-Covid-19 level in 2019, the carrier said.

Thai Airways was forced to enter a court-supervised rehabilitation after reporting its worst-ever net loss of 141 billion baht in 2020 as a result of the Covid-19 pandemic. The company returned to a net profit of 55.1 billion baht in 2021 – the first net profit in five years – following restructuring efforts that included improving management efficiency and selling assets.

However, business recovery of Thai Airways – and the broader aviation sector – was most recently affected by the Ukraine war and China’s zero-Covid-19 policy with an unclear outlook for both fuel prices and tourism numbers.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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