THAI Rebounds With 1Q Positive Earnings

13th May 2015

Charamporn Jotikasthira, Head of Thai Airways International (THAI) announced that the company made a rebound as January to March operations resulted to positive earnings.

Lower fuel prices during the period as well as gains from Forex transactions helped boost THAI's revenues to a level of 51 billion baht. Corresponding net income amounted to more than 4.5 billion baht.

The airline's fuel costs went down by 30 percent or approximately 6 billion baht for the months January to March. On top of this, THAI also reported an unrealised forex gain of more than 9 billion baht.

Percentage of seats sold also improved by 7 percentage points from 69% to 76%.

The airline's president committed to reduce the company's 2015 expenses by around 9 billion baht. Part of the cost-reduction plan is the implementation of the golden handshake project which was already given a go signal by the company's board. The project's budget however hasn't been approved yet though it is expected that the board will soon act on it by mid-year.

THAI also implemented a sizeable cut in its manpower from a hefty 25,000 to a very lean force of 1,800. It has also disposed old and outdated air carriers.

In addition, the airline has cancelled flight routes that are no longer feasible. These include flights from Bangkok to Johannesburg and Moscow as well as from Phuket to Seoul.

This year might prove to be better one for THAI given that last year, the airline had reported losses of about 15 billion baht.

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