Thai Airways posts H1 loss

Dino D'Amore
By Dino D'Amore August 14, 2015 16:56

Thai Airways posts H1 loss

Thai Airways has posted a first half 2015 net loss of THB 8,218 million. Its primary aviation business operating results incurred a net loss of THB 297 million – representing an improvement of 97% from the net loss of THB 10,986 million in the same period last year.

THAI is in the midst of a transformation plan to cut losses, reduce expenses and increase revenue and sales. During the second quarter of 2015, THAI produced a 20% increase in passengers flown, 11% increase in Revenue Passenger-Kilometer (RPK) and only 2% increase in Available Seat-Kilometer (ASK) when compared to the same period last year. Hence, the load factor showed an improvement of 5.7% from 63.5% last year to 69.2% in this reporting quarter. The losses from operations reduced by THB 2,986 million (improved by 39%) from last year. The total revenue of THB 41,807 million (THB 1,557 million baht or 4% decline) were primarily due to the drop in cargo and commercial mail revenue as a result of the drop in imports together with cargo aircraft decommission. The total expenses were THB 45,111 million showing a decrease of THB 4,362 million (9%) mainly from average fuel cost reductions.

During this quarter, the Company had special expenses as high as THB 7,827 million comprised of personnel expenses of THB 3,722 million from implementation of the transformation plan by lowering staff size through the Mutual Separation Plan (MSP) and Golden Handshake programs, THB 426 million from aircraft impairment, foreign currency exchange loss of THB 3,679 million. These caused a net loss of THB 12,759 million in the second quarter of 2015, higher loss than last year by THB 5,097 million. This quarter loss was 5.85 baht per share comparing to a loss of 3.51 baht per share last year.

For operating results in the first half of the year 2015, the company had a net operating loss of THB 8,218 million, an improvement of 20% compared to the same period last year, with special one-off expenses of THB 9,977 million comprised of THB 3,722 million for the early retirement programs, THB 12,230 million from assets and aircraft impairment offset with THB 5,975 million in foreign currency exchange gain. Should we include these special one-off expenses, the Company’s operating results would be a loss of THB 297 million which was a 97% improvement from the same period last year.

Dino D'Amore
By Dino D'Amore August 14, 2015 16:56