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THAI 2018 losses deepen to B11.6bn

BANGKOK: Thai Airways International Plc’s consolidated net loss deepened to B11.6 billion last year compared with a loss of B2.1bn in the previous year due to higher fuel and repair costs.

Saturday 2 March 2019, 03:15PM

Thai Airways International reports a loss of 11.6 billion baht for 2018, compared to a loss of B2.1 billion in 2017. Photo: Bangkok Post file

Thai Airways International reports a loss of 11.6 billion baht for 2018, compared to a loss of B2.1 billion in 2017. Photo: Bangkok Post file

Losses per share stood at B5.33 compared with B0.97 in 2017, the flag carrier told the Stock Exchange of Thailand yesterday (Mar 1).

While operating income rose 3.9% year-on-year to B199.5bn, operating expenses exceeded that figure by B6bn, the flag carrier said on its official Thai-language “Thai Airways” Facebook yesterday afternoon.

Sumeth Damrongchaitham, who was named president of the airline in September 2018, said that during the year THAI took delivery of five planes and decommissioned two Boeing B737-400s, resulting in a net addition of three planes to its fleet to 103 as of the end of last year. The utilisation rate remained at 12.0 hours, the same level as last year.

Available seat kilometres (ASK) rose 2.9% last year while revenue passenger kilometres (RPK) climbed 1%. The cabin factor averaged 77.6%, down from 79.2% in 2017.

In 2018, THAI flew 24.3 million passengers in total, down 1% year-on-year.

During the year, the airline adopted some accounting changes. The estimated remaining value of planes and parts was cut to 6% from 10% of initial costs, resulting in depreciation costs rising by B3.1 million.

Sold tickets which have not been used were also booked as revenue after 15 months instead of 24 months, resulting in a B1bn increase in fare revenue.

The company said competition remained high in 2018 and fuel prices were at the highest levels in four years.

Consolidated revenue rose 3.9% to B199.5bn last year from fare and excess baggage incomes, postal fees and other incomes.

At the same time, operating costs jumped 10.3% to B205.6bn, mainly due to higher fuel costs, up 19.7% compared with a 30% average increase in fuel prices.

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Excluding fuel prices, operating expenses rose 7.3%, or B9.8bn, mainly due to higher repair and maintenance costs, plane rentals and depreciation costs.

Meanwhile, net financial costs fell 4.7% to B215mn thanks to better cash management and ongoing financial restructuring.

Due to these factors, operating losses totalled B9bn last year compared with an operating profit of B2.8bn in the previous year.

The carrier also booked a one-time expense last year after realising B3.4bn in losses from asset and plane depreciation while profit from foreign exchange totalled B911mn.

Assets stood at B268.7bn, down 4.3% year-on-year while liabilities fell 0.2% to B248.3bn. Shareholders’ equity plunged 36.1% to B20.4bn due to the losses.

THAI said it would adhere to its rehabilitation plan, which involves fleet modernisation and “Ground to Sky” service integration. Other focuses are digital marketing, additional income sources such as the maintenance repair and overhaul centre at U-Tapao airport.

THAI shares closed down 3.8% to B12.60 in trade worth B96.8mn yesterday, compared to a 0.73% decrease of the Stock Exchange of Thailand index.


Read original story here.



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