Thai Airways reveals rising revenue in third-quarter results this year

Thai Airways International Public Company Limited and its subsidiaries announced their third-quarter performance results today, showing a total revenue of 37,008 million baht.

This is an increase from the same period last year, which stood at 32,860 million baht, marking a rise of 12.6%. The company and its subsidiaries transported a total of 3.27 million passengers, with Thai Airways accounting for 2.19 million, and Thai Smile for 1.08 million. The average Cabin Factor was 77.3%, similar to the same period last year, which averaged 77%.

The company and its subsidiaries had a total expenditure (excluding one-time occurrences) of 29,289 million baht, slightly higher than the previous year’s 28,940 million baht. This increase was mainly due to the variable costs associated with increased production and transportation volumes. The most significant expense was fuel costs, amounting to 11,995 million baht (41% of total expenditure).

Thai Airways and its subsidiaries reported a pre-financial cost operating profit (excluding one-time occurrences) of 7,719 million baht, a significant increase from the 3,920 million baht profit in the third quarter of last year. However, due to financial costs recognised under the TFRS 9 financial reporting standard, amounting to 3,722 million baht, and one-time occurrences mainly resulting from foreign exchange losses totalling 2,732 million baht, the company and its subsidiaries reported a net profit of 1,546 million baht.

In contrast, the previous year saw a loss of 4,780 million baht. The EBITDA, after deducting cash paid for debt repayment under aircraft rental contracts and actual aircraft usage charges (Power by the Hours), was 8,360 million baht.

For the first nine months of this year, Thai Airways and its subsidiaries reported a total revenue (excluding one-time occurrences) of 115,897 million baht, a substantial increase from the same period last year, which was 65,567 million baht.

Costs and expenditures

Meanwhile, total expenditure (excluding one-time occurrences) was 86,567 million baht, higher than the previous year’s 66,115 million baht. The company and its subsidiaries reported a pre-financial cost operating profit (excluding one-time occurrences) of 29,330 million baht, a stark contrast to the 548 million baht loss in the same period last year.

After considering financial costs recognised under the TFRS 9 financial reporting standard, amounting to 11,237 million baht, and one-time occurrences mainly resulting from foreign exchange losses totalling 2,390 million baht, the company and its subsidiaries reported a net profit of 16,342 million baht.

In contrast, the previous year saw a loss of 11,237 million baht. The EBITDA, after deducting cash paid for debt repayment under aircraft rental contracts and actual aircraft usage charges (Power by the Hours), was 31,720 million baht.

As of September 30, the company and its subsidiaries had total assets of 234,290 million baht, an increase of 36,112 million baht (18.2%) from December 31 last year. Total liabilities amounted to 288,996 million baht, an increase of 19,794 million baht (7.4%). The equity attributable to the company and its subsidiaries was negative at 54,706 million baht, a decrease from the negative 16,318 million baht, reported KhaoSod.

Despite entering the tourist season in several regions, the aviation industry is expected to face fierce competition as airlines gradually resume operations to pre-Covid-19 levels. This can be seen from the opening of new routes and frequency enhancements of various airlines. For example, Scandinavian Airlines has resumed its Bangkok-Copenhagen route, and Lufthansa has reintroduced its Airbus A380 in its Bangkok-Munich route.

However, these developments, coupled with slow economic recovery in China and rising fuel prices, mean Thai Airways will continue to focus on managing yields and cost efficiency while strictly adhering to its organisational reform plan and business operations discipline.