Thai Airways International reported group net profit of 2.2 billion baht ($62.6 million) for quarter ending June 2023 reversing the Bt3.2 billion loss in the year-ago period citing passenger demand and rebound in travel especially in China and Japan markets. Total revenue, excluding one-time transactions, increased 74% on the year to 37.3 billion baht.
Thai Airways had filed for bankruptcy protection in 2020 taking a hit of 3.2-billion-baht net loss in the April-June quarter of last year. The group noted that this is its fourth consecutive profitable quarter, after it undertook business restructuring amid the pandemic.
Thai Airways had initially aimed to complete its restructuring in 2025 but is now on track to do so as early as 2024. It aims to relist on the Thai stock exchange soon after to raise fresh funds.
“In the first five months of 2023, THAI and its subsidiary Thai Smiles achieved an impressive 82.2% cabin factor at Suvarnabhumi International Airport,” commented Chai Emansiri, chief executive, THAI. “I am confident in THAI’s successful rehabilitation, debt-to-equity conversion, and organizational restructuring efforts, projecting a prompt exit from rehabilitation by Q3 2024 and a return to trading on the Stock Exchange of Thailand.”
Anticipating earnings before interest, taxes, depreciation, and amortization (EBITDA) to surpass THB20 billion within a year, Chai said the national carrier is committed to fulfilling the conditions to exit the rehabilitation program.
Thai carried 3.35 million passengers during the quarter, about 67% more than the year-ago period. Capacity grew about 47%, while traffic leapt 93% year on year. Costs for the quarter rose about 25% to Bt28.8 billion, with non-fuel expenses, like flight service and crew costs leading the increase.
As part of the reorganization, THAI plans to dissolve Thai Smiles and reintegrate 20 Airbus A320-200 planes and staff by February 2024. THAI’s fleet will be bolstered by these additions, along with the acquisition of 11 A350-900 planes. The airline presently serves 57 destinations across 19 countries.
The airline served 3.35 million passengers in the April-June quarter, up 67% on the year.
It also aims to start code-sharing flights with Singapore Airlines to the US and South Africa by November 2023.