CAPA said Thai was restructuring to improve the carrier’s long-term outlook after incurring more than B23 billion in operating losses over the last two years.
“It has accelerated the phase-out of A340-600s and Boeing 747-400 aircraft and is dropping freighter operations entirely as it cuts long-haul capacity,” the report said.
The flag carrier has so far decided to axe three of its 15 long-haul passenger destinations and one regional route. More network reductions are expected as the airline shrinks its wide-body fleet by 17 aircraft this year.
The airline’s president, Charamporn Jotikasthira, in a recent TV interview, said 22 aircraft would be put up for sale, but the airline continues to take delivery of new aircraft.
Most of the capacity cuts will focus on Europe, where Thai has suffered at the hands of Gulf carriers.
It will refocus growth on China and Japan, while offloading unprofitable regional routes to Thai Smile, a 100pc subsidiary that is a hybrid between a LCC and full-service product.
Thai cut Phuket-Seoul and Bangkok-Moscow from March 29 and has also ditched its Madrid route.
The suspension of Madrid and Moscow still leaves Thai with 11 destinations in Europe – Brussels, Copenhagen, Frankfurt, London Heathrow, Milan, Munich, Oslo, Paris, Rome, Stockholm and Zurich.
There are reports that the airline will reduce flights to London and Frankfurt from twice a day to once.
Thai’s only remaining long-haul destination outside Europe and Asia, Los Angeles, could also be cut.
Thai has stated it is looking to cut about 20 unprofitable routes in 2015. This would suggest another 16 of its nearly 70 international routes could be cut.
The airline incurred a net loss of B15.6 billion for 2014, compared with a net loss of B12.05 billion in 2013.
Thai has suffered losses since early 2013 adding up to seven consecutive quarters. Over those quarters the group has accumulated operating losses exceeding B23 billion, CAPA reported.
“More losses are expected in 2015, although they should be significantly reduced as the airline benefits from lower fuel prices and higher load factors.”