Thai Airways’ comeback plan takes flight
Reduced debt, fleet expansion, and SET return on the horizon for THAI
Following a comprehensive business rehabilitation, Thai Airways International (THAI) has launched its Fly for the New Pride campaign, as it anticipates resuming trading on the Stock Exchange of Thailand (SET). The airline now operates with reduced debt and new revenue streams.
Celebrating its 65th anniversary, the airline has lowered its liabilities from approximately 400 billion baht to around 80 billion baht since creditors filed for business rehabilitation in 2020. Chief Executive Chai Eamsiri stated that the remaining debt is planned to be serviced through 2036, with 10 billion baht to be paid this year, already reserved for payment.
The carrier has divested 10 billion baht in assets and reduced its workforce to 14,000 from nearly 30,000, maintaining a headcount expense ratio of 13% to stay competitive.
Last year, THAI reported 188 billion baht in revenue, a 16.7% increase year-on-year, but faced a net loss of 26.9 billion baht due to a one-time accounting loss from debt-to-equity conversion under the rehabilitation plan, completed in November 2024.
The accounting losses were primarily due to debt-to-equity conversion rights exercised by creditors at lower-than-fair-value prices. Despite this, THAI has achieved operating profits over the past two years, with revenue returning to pre-covid levels, even though capacity was reduced by 20%.
To offset accumulated accounting losses, THAI announced a reduction in the par value of its shares from 10 baht to 1.3 baht, as part of its rehabilitation efforts. A capital increase of 76 billion baht through a debt-to-equity swap and rights offering has helped turn shareholders’ equity into a surplus, enabling the airline to seek court approval for a debt plan exit in the second quarter.
Spreading its wings
THAI has confirmed orders for 45 Boeing 787-9 Dreamliners as part of its fleet expansion, planning to procure an additional 35 aircraft, depending on market conditions. Currently operating 79 aircraft, the airline aims to increase its fleet to 103 by 2026 and 116 by 2027, with a long-term goal of 150 aircraft by 2033.
By mid-2027, the airline expects the first batch of new aircraft deliveries, with further deliveries over the next decade. Additionally, THAI is set to receive three leased Airbus A321 Neos later this year and four leased wide-bodies, plus 15 narrow-body jets by 2026, returning the fleet to its pre-pandemic capacity.
THAI is collaborating with Airports of Thailand to promote Bangkok as a transit hub, offering passengers various stopover options. This initiative aims to attract passengers for longer layovers, benefiting both THAI and the country.
Moreover, THAI has signed a memorandum of understanding with Bangkok Airways to develop an aircraft maintenance centre at U-tapao airport, valued at 10 billion baht. The collaboration aims to position Thailand as a regional aviation maintenance hub, enhancing national competitiveness.
The airline is also planning to develop a new cargo facility at Suvarnabhumi International Airport and expand its food retail business, seeking joint ventures to gain expertise. The winter 2025 flight schedule includes flights to 64 destinations with 883 total weekly flights, a year-on-year increase of 40, accommodating passenger demand on popular routes.
By fulfilling its rehabilitation plan and demonstrating sound performance, THAI expects to exit the business rehabilitation plan by May or early June, resuming share trading on the SET by July, reported Bangkok Post.
Chai highlighted that listing on the stock exchange provides more opportunities for future fund mobilisation and ensures corporate governance and management practices.
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