Thai Airways announces losses over 12 billion baht for 2019

Thai Airways International and its affiliates incurred a net loss of 12.017 billion baht last year, that’s 448 million baht more than the year before. The airline has been accumulating losses year on year for over a decade.

Speaking about the losses at the announcement yesterday, the vice president of finance and accounting Nattaphong Smit-Ampaisal says that the airline was affected by several negative factors, including a slowdown in global economic expansion, the US-China trade war, natural disasters, the strength of the baht, and price wars with other airlines.

Thai Airways’ (and its affiliates) revenue was 184.046 billion baht in 2019, That’s 15.454 billion baht lower than the previous year, or 7.7%.

“The revenue from passenger and cargo transport decreased by 8.6%, or 15.767 billion baht, while the total expenditure stood at 196.470 billion baht, or 5.8%, lower than last year.”

Nattaphong attributed the drop in expenditure to fuel costs dropping by 9%.

The national airline, and its affiliates, have a total of 103 planes in operation, with an aircraft “utilisation rate” of 11.9 hours per day, slightly lower than the previous year’s 12 hours per day. Cabin occupancy factor in 2019 was 79.19%, higher than the previous year’s 77.6%, with a total of 24.51 million passengers, an increase of 0.8%.

“Furthermore, the company and its affiliates had to set aside 2.689 billion baht as a reserve fund for employees who wished to retire early.”

This refers to the State Enterprise Labour Committee’s announcement that requires state enterprises to pay early retirement packages equal to 400 days of wages to employees who had been working more than 20 years, from the previous requirement of 300 days. The regulation came into effect at the start of July, 2019.

Assets for the airline, and its affiliates, as of the end of last year, was 256.665 billion baht, 4.5% lower than the year before. Total accumulated debt in 2019 stood at 244.899 billion baht.

The airline announced a reduction in salaries and other perks of between 15 – 25% for executives from the president down, to trim costs following the impact from the novel coronavirus outbreak. The announcement was made last week.

Thai Airways president Sumeth Damrongchaitham says the cut started on March 1 and will last for six months.

“The national flag carrier has felt the pinch of the outbreak, which has resulted in a decline in passenger numbers. It has also reduced its flights on many routes, including those to China and Japan. This situation has prompted the carrier to cut costs.”

SOURCE: The Nation