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    THAI Reports Operational Performance Results for the Third Quarter of 2023

    10 November 2023

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    In the third quarter of 2023, Thai Airways International Public Company Limited (THAI) and its subsidiaries reported the total revenue, excluding one-time transactions, at 37,008 million baht, higher than the same period last year which was 32,860 million baht, or 12.6%. The total number passengers carried was 3.27 million, 2.19 million by THAI and 1.08 million by THAI Smile Airways. An average cabin factor was 77.3%, (THAI: 77.1% and THAI Smile Airways: 80.9%), approximating to that in the same period last year, which was 77.0%.

    THAI and its subsidiaries reported the total expenses, excluding one-time transactions, at 29,289 million baht, higher than the previous year which was 28,940 million baht due to an increase in variable costs and fuel expense which was 11,995 million baht (or 41% of the total expenses). THAI and its subsidiaries reported the operating profit, before financial costs and excluding one-time transactions, at 7,719 million baht, improved from that in Q3/2022 which reported the operating profit at 3,920 million baht. THAI and its subsidiaries’ financial costs, according to Financial Reporting Standard No. 9 (TFRS 9), was 3,722 million baht. THAI and its subsidiaries had one-time items mainly due to loss on foreign exchange rates resulting total expenses of 2,732 million baht. Consequently, THAI and its subsidiaries reported a net profit of 1,546 million baht while in the same period last year, it was reported a net loss of 4,780 million baht. Earnings before interest, tax, depreciation and amortization (EBITDA) after cash paid for aircraft lease payment including Power by the Hour amounted to 8,360 million baht.

    In the first nine months of 2023, THAI and its subsidiaries reported the total revenue, excluding one-time transactions, at 115,897 million baht, higher than the same period last year which was 65,567 million baht, while the total expenses, excluding one-time transactions, at 86,567 million baht, higher than the previous year which was 66,115 million baht. THAI and its subsidiaries reported the operating profit, before financial costs and excluding one-time transactions, at 29,330 million baht, improved from the same period in 2022 which reported the operating loss at 548 million baht. THAI and its subsidiaries’ financial costs, according to Financial Reporting Standard No. 9 (TFRS 9), was 11,237 million baht. THAI and its subsidiaries had one-time items mainly due to loss on foreign exchange rates resulting total expenses of 2,390 million baht. Consequently, THAI and its subsidiaries reported a net profit of 16,342 million baht while in the same period last year, it was reported a net loss of 11,237 million baht. EBITDA after cash paid for aircraft lease payment including Power by the Hour amounted to 31,720 million baht. 

    Currently, THAI and its subsidiaries have a total of 68 active aircraft consisting of 20 narrow-bodied aircraft and 48 wide-bodied aircraft. THAI took deliveries of one operating lease wide-bodied aircraft in September making the total of three operating lease aircraft in 2023. During the first nine months of 2023, the average aircraft utilization of THAI and its subsidiaries was 12.0 hours per day while THAI average aircraft utilization was 13.7 hours per day and THAI Smile Airways average aircraft utilization was 8.2 hours per day. Traffic production (ASK) increased by 53.3% while passenger traffic (RPK) increased by 100.7% affecting an average cabin factor of 80.0% (THAI 80.0% and THAI Smile Airways 80.4%), higher than the previous year which was 61.1%. The total number of passengers carried was 10.13 million, an increase of 77.4%, 6.50 million by THAI and 3.63 million by THAI Smile Airways.

    As of 30 September 2023, total assets were 234,290 million baht, an increase of 36,112 million baht (18.2%) from 31 December 2022. Total liabilities were 288,996 million baht, an increase of 19,794 million baht (7.4%) from 31 December 2022. The shareholders' equity of THAI and its subsidiaries amounted to -54,706 million baht, a negative decrease from 31 December 2022, by 16,318 million baht. From the positive operational performance results, as of 30 September 2023, THAI has cash, bill of exchange, time deposit and debenture with maturity more than three months and less than twelve months of 63,387 million baht.

    During Q4/2023 and Q1/2024, amidst the high season and rising travel demand in many regions, the aviation industry is forecasted to be highly competitive as airlines resume services utilizing aircraft similar to the pre-pandemic level; for instance, the resumption of Bangkok-Copenhagen service of SAS and the utilization of A380 in Bangkok-Munich route of Lufthansa. The slow recovery of Chinese tourists resulted from the country's economic recess, rising fuel price, and costs of overseas ground customer services remain the challenges to THAI in managing yield, optimizing expenses, and implementing the organizational transformation plan to complete the processes of debt and capital restructuring as required by the timeframe in the rehabilitation plan. 
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