Thai, Bangkok Airways report first-quarter earnings surge

Thai Airways International Plc and Bangkok Airways Plc have experienced a significant increase in their first-quarter earnings as tourists return to Thailand in growing numbers.

Thai Airways reported a net income of 12.51 billion baht for the three months through March, a considerable improvement from the 3.25 billion baht net loss they incurred during the same period last year. Meanwhile, Bangkok Airways’ net income amounted to 875 million baht, in contrast to their 1.02 billion baht net loss for the corresponding period of the previous year.

As visitors are attracted back to Thailand’s beaches and temples, the Finance Ministry anticipates international arrivals to near the 30 million mark in 2023, up from the 11.2 million recorded last year.

Thai Airways saw its first-quarter total operating revenue more than triple to 41.5 billion baht, up from 11.2 billion baht the previous year when borders remained closed to curb the spread of Covid-19. In comparison, Bangkok Airways’ total revenue increased by an impressive 238% to 5.74 billion baht.

Thai Airways is set to exit court-supervised debt restructuring towards the end of 2024. The airline filed for bankruptcy protection in 2020 before the majority of its creditors agreed to extend terms under a US$5.3 billion rehabilitation plan.

The government is hopeful that the return of Chinese travellers will provide an additional boost to the revitalisation of the tourism sector. According to the Tourism Authority of Thailand, monthly arrivals from China are on track to reach one million from October, a figure not seen since before the pandemic began, reports Bangkok Post.