THAI Reports Operational Performance Results for the Year Ended 31 December 2021

28 February 2022


Thai Airways International Public Company Limited (THAI) reports the operational performance results for the year ended 31 December 2021 of THAI and its subsidiaries with the operating loss excluding the one-time transactions at 19,702 million baht, lower than last year by 15,712 million baht or 44.4%. The total revenue was 23,747 million baht, lower than last year by 24,684 million baht or 51%, mainly due to a decrease in both passenger and cargo revenue by 24,599 million baht or 59.9% and a decrease of 1,545 million baht from other services. However, THAI reports an increase in other incomes of 1,460 million baht due to revenue from offsets for maintenance and refurbishment of engines. Total expenses amounted to 43,449 million baht which was 40,396 million baht or 48.2% lower than the previous year, mainly due to variable operating expenses and cost reduction program implemented under THAI’s Rehabilitation Plan and business reorganization. However, this was insufficient to offset decreasing revenue. THAI and its subsidiaries had one-time transactions with net profit totalled 81,525 million baht consisting of profits following the Rehabilitation Plan such as profit from debt restructuring, sale of unused properties and organizational restructuring. Consequently,THAI and its subsidiaries reported 55,113 million baht of net profit ended 31 December 2021.

As of 31 December 2021, the total assets of THAI and its subsidiaries were 161,219 million baht, which decreased by 48,078 million baht or 23% compared to the figure as of 31 December 2020. The total liabilities were 232,470 million baht, a decrease by 105,492 million baht or 31.2% from 31 December 2020. Shareholders’ equity amounted to -71,251 million baht, which is a negative decrease of 57,414 million baht compared to the figure as of 31 December 2020, due to THAI and its subsidiaries’ net profit in 2021.

Following the border reopening of many European countries at the end of 2021 and Thailand’s Test and Go program starting 1 November 2021, THAI reported an increase of passengers in average per day from 311 in October to 1,067 and 2,559 in November and December 2021 respectively. The ease of COVID-19 restrictions in Thailand has also resulted an increase in the number of passengers traveling on board THAI Smile Airways per day from 2,623 in September to 9,536 in December 2021. Despite the growing number of passengers for THAI and THAI Smile Airways, it accounted for only 20% of the number of passengers traveled during the period of normal operations.

ue to the heightened spread COVID-19 Omicron variant, the Government has cancelled the Test and Go program on 21 December 2021. As a result, the number of passengers in January and February 2022 dropped by 20% from December 2021. However, travel demand is recovering following the resumption of Test and Go program in Thailand and the border reopening in Germany, England, Sweden, Denmark, Australia, Nepal etc. THAI will increase flight frequency to London, Frankfurt, Copenhagen, Zurich, Singapore, and Kuala Lumpur. In the second quarter of 2022, the company will resume flight operations to more destinations such as Melbourne and other Indian destinations. This February, THAI Smile Airways introduced domestic flights from Suvarnabhumi Airport to Roi-Et and Trang and flights from Don Mueang airport to Chiang Mai.

THAI increased its revenue efficiency in Cargo & Mail delivery and Cargo services, which are the main revenue sources since the outbreak of COVID-19 when transport of air passengers was limited, fetching over 10-billion-baht revenue or almost 50 percent of total revenue in 2021. THAI is seeking 25-billion-baht loan from financial institutions for the implementation of the Rehabilitation Plan in 2022. The loan contract signing is planned in March 2022. The company is also amending the plan in loan structure to ease the burden for the Government and capital restructuring which would help THAI rapidly regain the positive status of shareholders’ equity. The company will file for the plan amendment to the Official Receiver in accordance with the legal process.