News & Announcements

THAI Announces Third Quarter Results

Thai Airways International Public Company Limited (THAI) announced that in the third quarter 2013, the Company and its subsidiaries had consolidated total revenues of THB 51,351 million baht with a consolidated operating loss of THB 2,087 million, which is lower than last year’s reported profit of THB 2,490 million due to high competition and impact from economic slowdown in various regions around the world.  This caused revenue to rise at a slower rate than the rate of increase in operating expense.
Dr. Sorajak Kasemsuvan, THAI President, said that in the third quarter of 2013, the Company and its subsidiaries posted its third quarter 2013 operating results that includes Thai-Amadeus Southeast Asia Company Limited, Wingspan Services, Thai Flight Training Company Limited, Royal Orchid Holidays Company Limited, but excluding Nok Airlines Company Limited (Nok Air)  as a result of from the change in shareholding structure along with the change in composition of the board of directors as the number of board members has increased since 18 January 2013.  The results was THAI no longer has controlling share over Nok Air through THAI’s representation on Nok Air’s Board of Directors.  In addition, on 20 June 2013, Nok Air issued 125 million shares through an IPO (Initial Public Offering), which reduced THAI’s proportion of share holding in Nok Air from 49 to 39.2 percent.

In the third quarter 2013, THAI’s consolidated total revenues amounted to THB 51,351 million baht and consolidated operating loss totaled THB 2,087 million, which is lower than last year’s reported profit of THB 2,490 million due to high competition and the economic slowdown of various regions throughout the world.  With greater competitive pressure, revenue rose at a slower rate than that of operating expense.  Passenger and excess baggage revenue, revenue from Business Units, and other activities revenue increased with higher passenger traffic demand due to increased traffic production.  However, revenue from freight and mail decreased due to heavy competition and globally weak trade.  THAI’s operating expenses increased in relation to the increase in traffic production.  The significant increase in personnel expense by 16.3 percent is attributable to higher overtime charge from THAI employees and outsourced staff due to worker shortage.

In the third quarter 2013, THAI’s consolidated loss before loss on foreign currency exchange and income tax was THB 3,238 million as compared to last year’s reported a gain of THB 2,021 million attributable to THAI’s operating loss, increase in other expenses, and higher financing cost with the increase in liabilities from investment in new aircraft.

THAI’s consolidated loss on foreign currency exchange was THB 2,890 million, THB 2,770 million higher than last year.  Consequently, THAI and its subsidiaries reported a net loss of THB 6,182 compared to last year’s profit of THB 1,857 million.  Loss attributable to owners of the parent was THB 6,195 million or a loss of 2.84 baht per share, a decrease from last year’s 0.80 baht per share profit.

Operating results of Thai Airways International Public Company Limited and its subsidiaries for the first nine months of 2013 (January – September 2013) is a loss of THB 544 million for the period as compared to last year’s profit of THB 5,576 million as traffic production increased by 8.5 percent with operating revenue increased at a lower rate than that of the rate of increase in traffic production while operating expenses increased with the rate slightly lower than the rate of increase in production. THAI was also impacted from the baht appreciation, reducing revenues from transportation activities in baht terms more than THAI benefiting from the baht appreciation, thus reducing operating cost.  THAI also recorded an impairment charge taken against aircraft held for sale of THB 3,592 million compared to last year where THAI took an impairment charge on aircraft of only THB 181 million.  Consequently, Thai Airways Public Company Limited and its subsidiaries reported a net loss of THB 6,313 million compared to the same period last year where THAI’s consolidated recorded profit was THB 5,629 million.  Loss attributable to owners of the parent is THB 6,351 million or a per share loss of THB 2.91, a decrease from last year where THAI reported a profit per share of THB 2.49.

As of 30 September 2013, THAI’s consolidated total assets were THB 324,518 million, an increase of THB 20,422 million or 6.7 percent from 31 December 2012.  Total liabilities reached THB 262,957 million, which was an increase of THB 28,679 million or 12.2 percent from 31 December 2012.  Total shareholders’ equity amounted to THB 61,561 million, which was a net decrease of THB 8,257 million from 31 December 2012 from operating loss, a dividend payment of THB 1,226 million was made to shareholders in 2013 and the effect of losing control in Nok Air increased THAI’s equity by THB 721 million.