THAI Announces its 3Q 2016 Financial Results

14th Nov 2016

Thai Airways International announced its 3Q 2016 results and the carrier, alongside its subsidiaries, had an operating loss of 836 million Thai baht (THB). THAI, however, also recorded a decrease in loss of 3,403 million baht from the same period in 2015, or 80.3 per cent down.

The drop in losses can mainly be attributed to a decrease in fuel costs (5,504 million baht or 33.6 per cent) and a consequent fall of jet fuel prices of around 15.3 per cent as well as a more strategic fuel risk management.

On the other hand, other operating expenses (non-fuel related) increased by 6.7 per cent during this 3Q 2016. This was mainly because of higher overhaul and maintenance expenses resulting from a larger number of repaired engine spare parts compared to 3Q 2015, as well as a higher engine maintenance rate.

Additionally, THAI reported a net loss of 1,591 million baht, less than last year’s 8,303 million.  THAI and its subsidiaries also had a 624 million baht impairment loss on aircraft expenses and assets, but a 120 million baht gain on foreign currency exchange.

Speaking about THAI’s 3Q 2016 results, company President Charamporn Jotikasthira said the airline introduced the second stage of its transformation plan, called “Strength Building” in this period. This stage, said Mr. Jotikasthira, included refining THAI’s business unit work processes and improving its efficiency via IT in order to strengthen revenue management effectiveness for vital services such as “Fare Management System”, “Route Management System” and “Service Ring”.

Concluding with 30^th September this year, Thai Airways International’s consolidated assets were at 287,356 million baht. That’s 5.00 per cent or 15,115 million baht less when compared with the end of 2015. Additionally, total liabilities decreased by 5.8 per cent or 15,667 million baht and totaled 253,878 million baht. Shareholder’s equities increased exactly 1.7 per cent compared to 31^st December, 2015, or by 552 million baht and are now at 33,478 million THB.

During this quarter, THAI secured delivery of a single Airbus A350-900XWB aircraft (on 29^th August) and decommissioned one Boeing 777-200 which it had on a lease arrangement. The airline managed to increase its aircraft utilization rate to 11.6 hours in 2016 from 10.8h in 2015 and carried 7.6 per cent more passengers than in 2015, a total of 5.50 million so far.

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