Thai Airways records recovery with US$782 million profit in 2023

Thai Airways International Public Company Limited witnessed a significant rebound in its earnings following an increase in air travel demand. The airline reported a net profit of 28.1 billion baht (US$782 million) in 2023, a substantial recovery from the 272-million-baht loss experienced in the previous year.

This is the second-highest annual net income recorded by the company, surpassed only by the 55-billion-baht profit in 2021, primarily attributed to an 81.5 billion baht gain from debt restructuring.

The operating profit, excluding one-time items, also saw an upturn, reaching 24.6 billion baht, a stark contrast to the 4.59-billion-baht loss in 2022. The total operating revenue witnessed a 53% surge, amounting to 161 billion baht. However, the carrier has not released its fourth-quarter earnings yet, reported Bangkok Post.

Passenger numbers grew substantially, reaching 13.76 million, marking a 53% increase from 2022, when Thailand began to lift Covid-related travel restrictions. The airline also reported a one-time gain of 3.96 billion baht from debt restructuring, in comparison to a 5.24-billion-baht loss from similar transactions the previous year.

This marks only the third time Thai Airways has reported an annual profit since 2013. The airline, which filed for bankruptcy protection in 2020, managed to secure an agreement from most creditors to extend terms and reduce some interest repayments as part of a rehabilitation plan. Currently, it plans to conclude its court-supervised debt restructuring ahead of schedule, by the end of 2024.

In response to increasing passenger demand, Thai Airways recently agreed to order 45 aircraft from Boeing Co, with an option to extend the order to 80. The United States planemaker confirmed this order to be the largest in Thai history. The airline also intends to add three new Airbus A350-900 aircraft this quarter to accommodate a surge in bookings.

In addition, Thai Airways confirmed the completion of its capital restructuring by 2024 to bolster its financial status and allow for the resumption of stock trading on the Thai exchange in 2025. The shares have been suspended from trading since May 2021.

In related news, Transport Minister Suriya Juangruangreangkit announced that the Civil Aviation Authority of Thailand (CAAT) is in discussions with six airlines in Thailand, including Thai Airways, to increase the number of flights during holidays and reduce the flight price ceiling to address high fares.