THAI announces results for the second quarter of 2017

THAI and its subsidiaries announces its second quarter of 2017 with operating loss at the amount of THB 1,542 million (13.5% less than the same period last year), resulting from the escalating jet fuel prices by 20.1% and passenger yield decreased by 10.9% compare to the previous year due to the intense competition and reduction of fuel surcharge, despite cabin factor was the highest in the 10 years. After deducting one-time expenses, a loss from changes in ownership interest in Nok Air, impairment loss of assets and aircraft and loss on foreign currency exchange, THAI and its subsidiaries reported the net loss of THB 5,208 million.

Mrs. Usanee Sangsingkeo, Executive Vice President of Commercial and Acting President of Thai Airways International Public Company Limited (THAI), stated that in the second quarter, THAI continued the third phase of its transformation plan "Sustainable Growth" from the previous quarter. In the second quarter, which is normally a low-season period, passenger traffic (RPK) in actuality increased by 21.9% from the same quarter of last year, with an increase in production traffic (ASK) of 7.1%. Cabin Factor averaged at 78.5%, up from 69.0% in the previous year, the highest in 10 years, with 97 aircraft in operation, whereby two more aircraft than at the end of 2016 from the delivery of the Airbus A350-900XWB. Aircraft Utilization increased by 4.5% with 5.87 million passengers carried representing a 14.9% increase from last year.

THAI and its subsidiaries' operating loss was down 13.5% from the previous year. Total revenue was THB 45,182 million, an increase of 9.6% from the same quarter of last year due to an increase of passenger and excess baggage revenue which resulted from the increase in passenger traffic by 21.9%, despite a drop in average passenger yield due to intense price competition. Freight and mail revenues increased from the recovery in the export sector. Revenues from other activities increased arising from the higher aircraft maintenance service. While total expenses amounted to THB 46,724 million, an increase of 8.6% due to an increase in fuel expenses of THB 527 million (4.5%) resulting from an increase of 20.1% in average jet fuel price. Non-fuel operating expense increased by THB 3,390 million (11.3%) from last year mainly from the increase in production and traffic as well as the increase in maintenance and overhaul expense.

In this quarter, THAI and its subsidiaries had one-time expenses at the amount of THB 575 million, a loss from changes in ownership interest, at the amount of THB 428 million resulting from the dilution of THAI's shareholding in Nok Air and impairment loss of assets and aircraft, at the amount of THB 390 million. In addition, there was a loss on foreign currency exchange at the amount of THB 2,431 million. Consequently, THAI and its subsidiaries reported the net loss of

THB 5,208 million. Loss attributable to parent amounted to THB 5,211 million. Loss per share was THB 2.39 per share, THB 1.05 or 78.4% higher loss than last year.

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