Thai Airways sees surge in bookings despite pandemic and global conflict
Thai Airways International (THAI) reported a surge in bookings on its European and Australian routes for the fourth quarter of this year, signalling a robust recovery for the airline even amid an ongoing pandemic. Despite the broader global economic slowdown and the Israel-Hamas war, these routes have witnessed heavy bookings. However, the Chinese market remains slow, possibly due to various factors including domestic economic challenges and security concerns about Thailand.
THAI President Chai Eamsiri disclosed this information yesterday. He cited that while the demand from Europe and Australia is promising, the Chinese market hasn’t shown substantial recovery. The average capacity of bookings from China is hovering around 60%.
One of the potential reasons behind the sluggish Chinese demand could be the October 3 shooting at Siam Paragon. The unfortunate event resulted in the death of a Chinese mother of twins and left another Chinese tourist injured. This incident has seemingly reignited safety concerns among Chinese travellers about visiting Thailand.
In terms of financial performance, Eamsiri further expressed optimism about the airline’s recovery. He reiterated that the national carrier is on track to exit its rehabilitation plan by the end of next year, as its financial performance continues to exceed expectations. The company’s current cash flow stands at roughly 51 billion baht, reported Bangkok Post.
THAI is scheduled to report its third-quarter earnings in mid-November. Its second-quarter revenue reached 37.3 billion baht, marking an impressive 73.7% increase from the same period last year. This surge was driven by improving travel demand. The net profit for the quarter stood at 2.26 billion baht, a significant improvement from a net loss of 3.2 billion a year earlier.
In related news, THAI announced operational changes at the beginning of September regarding using A320 for routes previously managed by Thai Smile Airways. Read more about this story HERE.
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