THAI Reports Nine-Month Operational Performance Results in 2022

11 November 2022

Thai Airways International Public Company Limited (THAI) reports the operational performance results of the third quarter of THAI and its subsidiaries with the operating profit excluding the one-time transactions at 3,920 million baht comparing to 5,310 million baht loss in the same period last year. The total revenue was 32,860 million baht, higher than the same period last year by 582%. The passenger and cargo revenue was 30,890 million baht mainly due to an increase of flight frequencies in the first six months of the year in London, Frankfurt, Chennai, Bengaluru, Delhi, Mumbai, Lahore, Karachi, Islamabad, Hanoi, Ho Chi Minh, Phnom Penh, Jakarta, Dhaka, Denpasar, Taipei, Singapore, Copenhagen, Munich and Zurich and flight resumption in the routes operated before COVID-19 in Penang, Tokyo (Haneda) and Brussels.  The cabin factor was escalated to 77.0% comparing to 9.9% in the same period last year.  THAI and its subsidiaries reported total operating expenses at 28,940 million baht, which is 186% higher than last year due to the variable operating expenses in which 44% was aviation fuel price, that was risen by 80% higher than last year.  The auditor reported review results with unconditional assumption for the first time since THAI’s under the Rehabilitation Plan. 

In the Q3/2022, THAI and its subsidiaries had financial costs of 3,672 million baht which was higher than last year by 2,160 million baht due to the adjustment of interest expenses.  Despite profit from debt restructuring and one-time sales of assets, THAI reported loss on foreign currency exchange from the Baht depreciation and impairment loss on assets.  Therefore, THAI reported net one-time expenses totaling 5,212 million baht and operating net loss at 4,780 million baht.  Loss attributable to owners of the parent amounted to 4,785 million baht.  However, THAI and its subsidiaries’ EBITDA after cash paid for lease liabilities was 6,181 million baht while last year’s loss was 3,100 million baht.  If the company’s EBITDA is higher than 20,000 million baht within twelve months, THAI’s operation under the Rehabilitation Plan can be terminated.

As of 30 September 2022, the total assets of THAI and its subsidiaries was 183,289 million baht, an increase of 22,070 million baht from 31 December 2021. The total liabilities was 265,788 million baht, an increase of 33,318 million baht from 31 December 2021.  Shareholders’ equity amounted to -82,499 million baht.  As a result of rising ticket sales and over two billion baht monthly EBITDA (earnings before interest, tax, depreciation, and amortization), cash and cash equivalent mounted from 6,017 million baht on 31 March 2022 to 13,474 million baht on 30 June 2022 and to 23,308 million baht at the end of Q3/2022.

In 2022, as the travel and cargo demand has significantly increased, the Cabin Factor in October was escalated to 80.4%. THAI and THAI Smile international passengers increased to 21,557 per day, which is 30% of total inbound and outbound Suvarnabhumi airport international passengers, and the number is counting especially during the high season in November and December.  With a 28% segment contribution in cargo, THAI operations revenue estimated one billion baht.

In response to the growing travel demand, THAI plans to increase flight frequencies and destinations including Stockholm, Taipei, Tokyo (Haneda), Fukuoka, Sapporo, New Delhi, Mumbai, Hyderabad, Kolkata, Jeddah, Singapore, Melbourne, Guangzhou, and Kunming. In accordance to the Rehabilitation Plan, THAI will expand its fleet utilizing its existing aircraft and leasing new aircraft to better optimize route and flight planning.