Thai airlines report surge in earnings as tourism rebounds

Thai Airways International Public Company Limited and Bangkok Airways Public Company Limited have experienced a significant increase in their earnings for the first quarter, as tourists have started to return to Thailand in increasing numbers.

In the first three months up to March, Thai Air recorded a net income of 12.51 billion baht (US$370 million), a considerable turnaround from their net loss of 3.25 billion baht the previous year. Bangkok Airways also saw a leap in net income, reaching 875 million baht after having experienced a net loss of 1.02 billion baht in the same period last year.

The Finance Ministry is predicting that international arrivals will approach 30 million in 2023, a substantial increase from the 11.2 million tourists who visited the country last year. Bangkok Airways’ shares experienced an increase of up to 4.9%, reaching 14.90 baht, their highest level in three months. Meanwhile, Asia Aviation Public Company Limited, which has control over Thai AirAsia Company, saw its shares rise by as much as 3.7%. The earnings for this company are set to be revealed on May 15. Thai Air’s shares, however, have been suspended from trading since May 2021 as the company undergoes debt restructuring reports Bangkok Post.

Thai Air’s total operating revenue for the first quarter has more than tripled to 41.5 billion baht, up from 11.2 billion baht a year earlier when Covid border closures were in place. Bangkok Airways has also experienced a revenue boost, with a 238% increase to 5.74 billion baht.

Thai Air intends to exit its court-supervised debt restructuring towards the end of 2024. The airline filed for bankruptcy protection in 2020 before the majority of creditors agreed to prolong terms as part of a US$5.3 billion rehabilitation scheme.

The government anticipates that the return of Chinese travelers will further strengthen the tourism sector, with monthly arrivals from China predicted to reach 1 million from October, a figure that has not been seen since the start of the coronavirus pandemic. Furthermore, Thailand is looking to attract affluent visitors from the Middle East during the latter half of this year, which could potentially become a new engine for growth. This information was reported by the Bangkok Post, which cited Apichai Chatchalermkit, the Tourism Authority of Thailand’s (TAT) deputy governor.