Thai Airways International Public Company Limited (THAI) announced its third quarter operating results for 2015 with an operating loss of THB 4,239 million (a year on year improvement of THB 1,002 million or 19.1%) in conjunction with impairment of assets and aircraft and foreign exchange rate loss of THB 4,631 million that resulted in a net loss of THB 9,894 million. For the first nine months of 2015, aviation operating losses was THB 4,536 million, which was 72% better than the THB 16,224 million loss during the same period last year.
Mr. Charamporn Jotikasthira, President of Thai Airways International Public Company Limited (THAI), said that the Company has been proceeding with the transformation plan since the second quarter of 2015. During the third quarter of 2015, THAI decommissioned one aircraft (Airbus A330-300) and took delivery of two aircraft (Boeing 787-8 and Boeing 777-300ER), bringing the total fleet to 95 aircraft. The Company also implemented the Mutual Separation Plan (MSP) for employees in general and a Golden Handshake scheme for flight attendants to manage manpower to improve personnel and cost structure and reduce overall cost in the long run. A total of 428 staff participated in the first phase of the program, which took effect on 1 July 2015.
During the third quarter of 2015, there were 8.99 million passenger arrivals and departures through Suvarnabhumi Airport, an increase by 20.3% over last year with the recovery of the Thai tourism sector, economic growth in several countries, and increased Chinese tourist travel to overseas destinations. However, the Rajprasong incident on 17 August 2015 caused a 25.2% decrease in passenger travel in September, compared to August. During the third quarter, a total of 5.15 million passengers flew THAI, an increase of 8.8% compared to the same period last year. Revenue Passenger–Kilometer: RPK increased by 3.9% while Available Seat-Kilometer: ASK decreased by 0.8 %, which resulted in a Cabin Factor that averaged 74.4%, which was higher than the same period last year which was an average of 71.1%. Cargo business was affected by the export downturn and reduced freight production due to decommissioned freighter aircraft, causing freight traffic to fall by 15.2% compared to the same period last year.
THAI and its subsidiaries’ financial performance for the third quarter of 2015 resulted in an operating loss of THB 2,786 million, a 27.3% improvement over the same period last year due mainly to a 6.1% expense decrease primarily from fuel cost. Total revenue was THB 44,342 million which was a THB 2,029 million or 4.4% decline from last year mainly due to a 3.3% reduction in passenger and excess baggage revenue and 19.7% reduction in freight revenue. The main reason for the decrease in revenue was the yield drop (6.9% in passengers and 5.2% in freight), due to lower fuel surcharge and intense competition.
Furthermore, non-operating profit and loss items included a loss of THB 99 million incurred from impairment of assets and aircraft, foreign exchange loss of THB 4,532 million resulting from an 8-10% depreciation of the Thai Baht against major currencies, and THB 1,453 million in financial cost. The total net loss incurred was THB 9,894 million for the quarter. Loss attributable to owners of the parent amounted to THB 9,901 million. Loss per share was THB 4.54 compared to gain per share of THB 0.50 last year.
As of September 30, 2015, THAI’s consolidated total assets were THB 300,436 million, a decrease of 2.2% or THB 6,831 million mainly from aircraft impairment. Total liabilities were THB 280,249 million, an increase THB 14,278 million or 5.4%. Total shareholders’ equity were THB 20,186 million, a decrease of THB 21,110 million or 51.1%.