THAI reports first quarter gains

14 May 2013  2042 | World Travel News

BANGKOK, 14 May 2013: Net profit soared 58.3% during Thai Airways International’s first quarter 2013, the airline announced Monday stating it was mainly due to consolidated gains on foreign currency exchange.

The public listed company declared a net profit of Bt8,295 million, which was Bt3,054 million, or 58.3%, higher than the same quarter last year.

A net profit margin of 14.8%, compared with 9.7% last year.

However, THAI President Dr Sorajak Kasemsuvan said the global economic growth in 2013 was likely to slow mainly due to economic weakness in the European Union, although Asian economic indicators were robust and there were signs of recovery in the US economy.

During the first quarter of 2013, the airline industry enjoyed higher passenger traffic and air cargo showed signs recovery after Asia-Pacific airlines reported soft performance last year of year.

According to the airline president, THAI continues to adhere to its strategic initiatives and will concentrate on building brand reputation, and delivering an appropriate level of profitability.

During the first quarter of 2013, THAI added five new aircraft to its fleet, while decommissioning older aircraft.

Available Seat Kilometers (ASK) increased by 5.5% over the same period last year, while Revenue Passenger Kilometres (RPK) also increased 7.7%.

Consequently, cabin factor averaged at 79.8% as compared to last year’s 78.2%. THAI continued to adhere to its corporate portfolio strategy through the expansion of THAI Smile’s routes between Bangkok – Mandalay and Bangkok – Ahmedabad starting 31 March. Other routes that THAI Smile also plans to launch include Phuket – New Delhi, Phuket – Mumbai and Phuket – Kuala Lumpur.

THAI and its subsidiaries’ financial performance in the first quarter of 2013 showed an operating profit of Bt4,443 million, which was Bt180 million, or 3.9%, lower than last year resulting from a more rapid increase in costs.

The slight decline in operating profitability was attributed to weaker revenue earned from cargo, but the expenses side rose due to increased traffic production, payment of staff performance incentives and accrued annual staff welfare.

The depreciation charge for the first quarter also declined resulting from the change in depreciation estimates. All aircraft are to be depreciated  over 20 years from the previous policy of 15 years.

There was also an adjustment on impairment of aircraft held for sale in the amount of Bt2,260 million. Consequently, profit before foreign currency exchange and income tax was Bt1,903 million, a decrease of Bt3,011 million or 61.3% from last year.

THAI’s consolidated gain on foreign currency exchange was Bt6,129 million, which was Bt5,602 million higher than last year. Consequently, THAI and its subsidiaries reported net profit of Bt8,295 million, an increase of Bt3,054 million or 58.3% from last year.

Profit attributable to owners of the parent was Bt8,283 million or Bt3.79 per share, an increase from last year where was Bt2.39 per share. Net profit Margin was 14.8%, which was higher than the same quarter last year where recorded 9.7%.

EBITDAR was Bt10,266 million, which decreased by Bt700 million or 6.4% over last year. EBITDAR margin was 18.3% lower than last year’s 20.3%.

Sourced: ttrweekly

Recommended Cambodia Tours

Cambodia Day Tours

Cambodia Day Tours

Angkor Temple Tours

Angkor Temple Tours

Cambodia Classic Tours

Cambodia Classic Tours

Promotion Tours

Promotion Tours

Adventure Tours

Adventure Tours

Cycling Tours

Cycling Tours