Thai Airways International Public Company Limited (THAI) and its subsidiaries announced Q1-2016 operating profit of THB 7,180 millio,n representing 62.6% improvement from the same period last year. After deducting impairment loss of assets and aircraft, maintenance provision expense for lease aircraft and loss on foreign currency exchange, the net profit was THB 6,011 million.
Mr. Charamporn Jotikasthira, President of Thai Airways International, stated that THAI entered into the second phase of the transformation plan “Strength Building” by embarking on four main strategies: 1) uplifting revenue through all possible channels; 2) managing cost, cash and balance sheet management; 3) improving capabilities such as network management and optimization, fleet plan and revenue management enhancement; 4) building service excellence in continuing from last year initiatives such as business class service upgrade.
In this quarter, THAI had a total of 95 active aircraft, nine less than the same period last year. With adjustment in routes and aircraft types to suit market demand, the aircraft utilization increased to 11.5 hours from 10.7 hours in 2015. As a result, production traffic (ASK) reduced only by 1.8% while passenger traffic (RPK) increased by 0.9%. Average cabin factor was 77.5% comparing to 75.4% last year with 5.92 million passengers carried representing a 5.3% increase from last year.
THAI and its subsidiaries’ total revenue decreased by 2.7% when compared to the same period last year due to the reduction of passenger and excess baggage revenue on the back of decreasing fuel surcharge as well as higher competition. However, the number of passengers carried was 5.3% higher than last year while total expenses decreased by 8.8% resulting from falling jet fuel prices. Non-fuel expense decreased from last year mainly from production decrease in conjunction with ongoing cost management.
THAI and its subsidiaries’ financial performance showed an operating profit of THB 7,180 million, showing a 62.6% increase from last year. Special items include THB 174 million impairment loss of assets and aircraft, THB 1,153 million maintenance provision expense for lease aircraft and THB 681 million loss on foreign currency exchange. Net profit for the period was THB 6,011 million with profit per share of THB 2.75, showing a THB 0.67 increased from last year.
As of March 31, 2016, total assets were THB 303,761 million, an increase of THB 1,290 million (0.4%) from as at December 31, 2015, resulting from net cash from operation activities. Total liabilities totaled THB 265,295 million, which was a decrease of THB 4,250 million (1.6%) from as of December 31, 2015. Shareholders’ equity totaled THB 38,466 million, an increase of THB 5,540 million (16.8%) from December 31, 2015.