THAI Announces Third Quarter Results 2018

09 November 2018

Thai Airways International Public Company Limited (THAI) and its subsidiaries announced its operating results for the third quarter 2018 that had a total revenue of THB 47,953 million, a 2.2% increase from the same quarter last year, and an operating loss of THB 3,686 million partially due to the natural disaster in Japan and decrease in Chinese tourists.  The world oil price rose more than 40%, which caused the operating cost to increase.

Mr. Sumeth Damrongchaitham, THAI President, said that in the third quarter, the Company accomplished the following:
•    Decommissioned 2 Boeing 737-400 and as a result a total of 103 active aircraft remained in the fleet of THAI and its subsidiaries (as of 30 September 2018), which is 4 more aircraft than the same period last year.
•    Aircraft utilization was 12.1 hours, equivalent to the same period last year.
•    Production traffic (ASK) increased by 2.0%, while passenger traffic (RPK) increased by 1.0%
•    Average cabin factor was 77.5%, lower than 78.2% last year.
•    A total of 6 million passengers were carried, which was nearly the same as the same period last year.

THAI and its subsidiaries had a total revenue of THB 47,953 million and total revenue increased by THB 1,025 million or 2.2%, due to the following reasons:
•    Increase in passenger and excess baggage revenue at THB 304 million or 0.8% from an increase in passenger traffic.
•    Freight and mail revenue increased by THB 561 million or 10.9%  
•    The Company’s other revenue also increased by THB 360 million or 12.3%

Normally, the third quarter of each year is low season. Competition in the aviation industry continues to remain intense with rising world oil prices that caused a reduction in travel demand while operating cost increased.  In September 2018, THAI was also affected by the result of natural disasters that included Typhoon Jebi that hit Japan and resulted in temporary closure of Kansai International Airport due to damaged and flooded runways. The earthquake in Hokkaido and Typhoon Mangkhut struck Hong Kong and forced THAI to cancel flights to several destinations.  
In addition, there was a decrease in number of Chinese tourists.  During the third quarter, total expenses from last year increased by THB 5,259 million or 11.3% due to an increase in fuel expenses of THB 3,499 million or 29.4% from rising fuel cost that increased by 41.0%.  Non-fuel operating expenses increased by 1,862 million or 5.5% from last year, mainly due to the rise in maintenance and overhaul expenses as well as the increase in aircraft and spare part leases.  During this quarter, THAI had a one-time expense that consisted of impairment loss of assets and aircraft at THB 371 million, gains on foreign currency exchange at THB 299 million from balance sheet revaluation.  Consequently, THAI and its subsidiaries reported the net loss of THB 3,686 that was THB 1,872 million more than last year.  Loss attributable to owners of the parent amounted to THB 3,701 million or a loss per share of THB 1.70 per share, which is THB 0.86 more loss than last year.

As of 30 September 2018, total assets totaled THB 277,607 million, a decrease of THB 3,168 million or 1.1% from 31 December 2017.  Total liabilities were THB 249,219 million, which increased by THB 457 million or 0.2% from 31 December 2017.  In addition, shareholders’ equity totaled THB 28,388 million, a decrease of THB 3,625 million or 11.3% from 31 December 2017 due to the operating loss of THAI and its subsidiaries in the first nine months of this year.

The Company remains committed to proceeding with its organizational transformation plan, to increase revenue and other revenue, with ongoing cost control measures.