THAI suffers Q2 setbacks

15 Aug 2012  2043 | Business & Trade Fairs

BANGKOK, 15 August 2012: Thai Airways International and its subsidiaries posted a Bt1.526 million loss during the second quarter, but still managed to declare a Bt2.21 billion profit over the first half of fiscal year 2012.

During the second quarter, April to June, THAI’s consolidated revenues amounted to Bt48,506 million, which was an increase of Bt2,947 million or 6.5% from last year.

THAI’s consolidated expenses, excluding gain (loss) on foreign currency exchange rates amounted to Bt51,233 million, which was Bt285 million or 0.6% lower than last year.

The major factor causing the decrease was the lower employee benefit expenses and lease of aircraft and spare parts. The fuel expense increased 1.6% amounting to Bt19,679. The airline gained Bt716 million from fuel hedging.

However, THAI and its subsidiaries also recorded a Bt1,316 million gain on foreign currency exchange compared to last year, when THAI lost Bt2,265 million. Consequently, THAI and its subsidiaries reported a loss before foreign currency exchange and income tax of Bt2,727 million. It was a viewed as an improvement on last year when the loss reached Bt5,959 million.

THAI’s consolidated loss totaled Bt1,458 million. Loss attributed to shareholders (net loss) was Bt1,526 million, or Bt0.70 per share. The net loss decreased when compared to last year’s Bt7,874 million or Bt3.61 per share loss.

EBITDAR was Bt4,439 million, which increased by Bt2,944 million or 196.9% from last year.

Cabin factor stood at 75.1% compared to 66.4% during the same period last year. It carried 4.86 million passengers, up 15.7%.

Operating results of subsidiaries over the first six months showed a profit of Bt2,210 million. Profit attributed to owners of the parent amounted to Bt2,118 million or Bt0.97 per share compared to last year’s loss of Bt7,256 million or Bt3.32 per share.

Based on previous news regarding the company’s target that stated it would earn profit before foreign currency exchange and income tax of Bt6,000 million this year, the company confirmed that based on its six-month financial results, it might not reach the target by the end of the year.

THAI executive vice president, strategy and business development and acting president, Chokchai Panyayong, said that the promotion campaign designed specifically for the low season had much lower yield than during the first quarter of the year. Also, the remaining amount of the special fare tickets issued in late 2011 to stimulate more passenger traffic after the central plains flood were valid until June this year and impacted on passenger fare yields.

There were various expenses paid during this quarter which consisted of retrospective annual salary increment, which had been pending for adjustment since January, retrospective license allowance for pilots, which had been pending for adjustment since June 2011.

When compared to the same period last year, THAI’s cabin factor was considered satisfactory for the low season.

However, THAI was subjected to unfavorable world economic situation, intensified competition, which flattened fare revenue.

Simultaneously, fuel prices were still high, although THAI’s fuel hedging strategy lessened the impact. It said repairs to Suvarnabhumi Airport’s runway in June caused flight delays and increased expenses.

Sourced: ttrweekly

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