Thai Airways posts quarterly loss as fuel bill rises

Higher fuel spending pushed Thai Airways into its first loss-making quarter of the year, according to results announced on November 12. The carrier reported a ฿418 million net loss for July–September, reversing the ฿4,421 million profit recorded a year earlier.

There were differing figures for the quarterly loss: business outlets put it at ฿431.6 million, citing a results summary lodged with the Stock Exchange of Thailand. Revenue increased by 12.9% to ฿50,128 million, but spending grew faster, rising 29.1%.

Thai Airways attributed the 59.8% year-on-year increase in its average fuel cost to renewed Middle East unrest from early July. Spending excluding one-off items totalled ฿46,286 million. Before financing charges, operating profit was ฿3,842 million, a decline of 55.1%.

Financing charges reached ฿3,362 million, up ฿225 million. One-off items resulted in a ฿1,126 million net expense, chiefly reflecting flood damage and currency losses. Derivatives gains offset part of that expense, but the carrier did not disclose the amount attributable to flooding.

Passenger traffic totalled 3.97 million during the quarter. Seat occupancy was 76.5%, versus 76.8% a year earlier. Following increases in fuel surcharges, income from passenger fares and excess baggage reached ฿39,498 million, rising 10.7%.

Across the January–September period, net profit amounted to ฿11,226 million, down from ฿26,394 million a year earlier. Thai Airways described bookings ahead of the year-end tourism season as healthy and said it was adapting its operations to external pressures.