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THAI posts profit of B51bn

BANGKOK: Struggling Thai Airways International (THAI) generated a net profit of B51.1 billion in the first nine months of the year, according to Piyasvasti Amranand, a member of a THAI panel overseeing a court-monitored debt rehabilitation plan.

transporttourismCOVID-19Coronavirus
By Bangkok Post

Tuesday 16 November 2021, 08:50AM


Photo: Bangkok Post

Photo: Bangkok Post

Mr Piyasvasti yesterday (Nov 15) attributed the turnaround largely to the adoption of the debt-restructuring plan which involves the sale of its assets and a workforce revamp, among other measures, reports the Bangkok Post.

He said the company has solid financial security with sufficient cash flow to sustain its operations until a fresh loan is procured. The loan will be vital for keeping up the pace of the restructuring.

The airline was waiting to see if the Finance Ministry, which is one of the airline’s large shareholders, will come to the financial support of the company.

Last week, Finance Minister Arkhom Termpittayapaisith said the airline may need a loan of only B25bn to boost its financial liquidity, instead of an initially estimated B50bn.

The minister said the company will make a decision on the borrowing method and there will be no need for the Finance Ministry to guarantee the loan.

Yesterday, Mr Piyasvasti said without the ministry guaranteeing the loan, the airline has a few options at its disposal. One is to convert debt into equity worth B13bn.

Without the conversion and with no loan guarantee, the ministry’s shares in the company will be drastically reduced from 48% at present to 8%.

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Mr Piyasvasti said THAI was performing reasonably well so far. Last month, its revenue from passenger and cargo transport amounted to B1.2bn, of which 90% was generated by cargo traffic.

It was the airline’s highest monthly earning since the pandemic struck the country early last year.

The reopening of the country’s tourism industry has pushed up passenger demand.

The first 10 days of reopening on Nov 1 saw international passengers rising to 750 a day, up from 300 a day prior to Nov 1. He expected THAI to earn at least B50bn in revenue next year if there are no more serious outbreaks of COVID-19.

Meanwhile, the International Air Transport Association’s latest survey of airlines CFOs and Heads of Cargo, conducted in early October, shows improvements in airline profitability continued in the third quarter.

Respondents were also optimistic about profits in the next 12 months, indicating that improvements in the bottom line may extend further.

A large majority of respondents reported improving passenger and cargo volumes in the third quarter of 2021 compared to the same period in 2020, and they also expect this to continue on both sides of the business for the coming 12 months.

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christysweet | 18 November 2021 - 09:58:15

Better to read a misspelled but easily comprehended and  valid opinion  than the vacuous insult posts. 

JohnC | 17 November 2021 - 09:35:36

Please Kurt buy a dictionary for all of us suffering from your destruction of the English language.

JohnC | 17 November 2021 - 09:33:44

So for Thai Airways to ever be profitable at all they need the covid virus pandemic to stay so they can keep their planes grounded. TIT!

GerryT81 | 16 November 2021 - 16:30:41

"This article reflex the intelligents,skills,and moral behaviour of the Thai management." Yes Kurt,and your comment reflects your English skills too ! 

Kurt | 16 November 2021 - 13:44:26

This article reflex the intelligents, skills, and moral behavior of the  THAI management. Is that management really thinking that even people in the street'' believe their nonsense? Real international air industry professionals are laughing about THAI.

CaptainJack69 | 16 November 2021 - 11:24:29

It says it right there in the second paragraph, they sold a bunch of assets. That's not profit that's 'collateral contraction'. They wouldn't be very 'profitable' if they sold all their planes now would they.

Why does Thai culture act as if people will believe these things? People aren't stupid and it's only the Thais that have been conditioned to ignore thei...

Fascinated | 16 November 2021 - 09:37:55

Clearly they borrowed TAT's magic calculator. No airline is in profit in the current situation, let alone one that is famous for its pork benefits and mis-management. Just a shuffling of numbers that no sane person will believe.

 

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