Thailand’s two full-service operators were in the black in their second-quarter earnings, as passenger traffic grew and revenues remained strong.
However, the two carriers – flag carrier Thai Airways International and regional operator Bangkok Airways – differed in revenue and cost increases, reflecting the different operating environment they face.
Thai posted an operating profit of Bt5.9 billion ($167 million) for the three months ended 30 June, down nearly 31% year on year.
The Star Alliance carrier, which is undergoing business rehabilitation, attributed the profit shortfall to an increase in expenses, which outpaced a rise in revenue. For the quarter, Thai recorded an 18% jump in revenue to around Bt44 billion, led by a 16% increase in passenger revenue.
Thai carried 3.8 million passengers during the quarter, up 13.7% year on year. Capacity grew by 21%, far outpacing an 11% increase in traffic.
The airline also managed to keep its yields stable, with passenger yields growing 3% year on year.
However, quarterly expenses rose 32% to Bt38 billion, with both fuel and non-fuel costs increasing. The rise in costs came as Thai added four aircraft to its fleet – three Airbus A350s and a single Boeing 787-9 – and the Thai Baht depreciated against the US Dollar.
Thai reported a net profit of Bt306 million, a steep decline of 86% year on year, as the airline took on larger impairment losses from the sale of four A380 engines. It also saw finance costs go up compared to last year, which impacted net profits.
The airline expects to complete capital restructuring by the end of the year - effectively wrapping up its business rehabilitation - with the goal of being re-listed on the national burse by the second quarter of 2025.
The move will see the airline cease to be a state-owned enterprise, which allows to “have flexibility in its management, to elevate its competitiveness and effectively transform its business”
BANGKOK AIRWAYS’ PROFIT GROWS
Meanwhile, compatriot Bangkok Airways posted an operating profit of Bt976 million during the quarter, up 23% year on year.
Unlike Thai, the carrier saw revenue growth outpace rising costs. Bangkok Airways reported a 16.8% jump in revenues to Bt5.8 billion.
Passenger volumes, at around 950,000, were up 4% compared to the year-ago period. The airline also saw a slight rise in passenger yields, which helped revenues.
Quarterly expenses rose 14.7% to Bt4.8 billion, led by operational-related costs, especially in fuel and maintenance.
Bangkok Airways reported a net profit of Bt712 million, up 6% year on year.
