Thai Airways reports huge loss but promises strong comeback
Thai Airways International has assured stakeholders that its massive loss for fiscal year 2024 is due to a one-off debt-to-equity conversion and will not hinder its operational performance or planned exit from its rehabilitation programme.
The airline reported a staggering loss of 26.901 billion baht, primarily caused by a one-time accounting loss of 45.271 billion baht from the debt-to-equity conversion completed in November last year. Most of this loss—about 40.582 billion baht—resulted from creditors converting debt to equity at prices below fair value. Despite this, Thai Airways emphasised that these were accounting losses unrelated to its core business and would not impact its financial health.
Piyasvasti Amranand, chairman of the rehabilitation plan administrator, clarified that the airline’s total revenue excluding exceptional items increased by 16.7% to 187.989 billion baht in 2024. Operating profit before financial costs grew by 3.2% to 41.515 billion baht, with an EBIT margin of 22.1%, exceeding projections in the rehabilitation plan.
Thai Airways also reported a positive EBITDA of 41.473 billion baht by the end of 2024, more than double the 20 billion baht required under the rehabilitation plan. The company’s equity rebounded to 45.495 billion baht, a significant improvement from the negative 43.352 billion baht recorded in 2023. This turnaround eliminates any risk of delisting from the Stock Exchange of Thailand and supports the airline’s planned exit from rehabilitation.
Looking ahead, Thai Airways is set to hold an extraordinary general meeting of shareholders on April 18 to appoint new directors, including industry veterans and independent board members. The meeting will also discuss reducing the company’s share par value from 10 baht to 1.30 baht, decreasing registered and paid-up capital from 283.033 billion baht to 36.794 billion baht to address accumulated losses.
Piyasvasti assured that this adjustment would not affect creditors, overall equity, or share value. Instead, it aims to facilitate future dividend payments and boost investor confidence.
“We will exit the rehabilitation plan as scheduled. While pursuing profitability and growth, we remain committed to full debt repayment, expecting to repay approximately 10,000 million baht annually until 2036.”
CEO Chai Eamsiri revealed plans to expand flight frequencies in 2025, with nine new aircraft expected by mid-year. While no new destinations are planned, routes to Mumbai, Germany, Pakistan, and Western Europe will see increased flight frequencies, reported The Nation.
Thai Airways is also focusing on network sales to diversify revenue streams and reduce market dependence. With a fleet of 79 aircraft, the airline aims to increase weekly flights to 883 in 2025 to meet growing travel demand.
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