Forex gains push THAI's Q3 earnings
Thai Airways International Plc posted the third-quarter net profit of Bt2.45 billion, despite the average 44.5 per cent increase in fuel prices over the same period last year.
The performance was a big improvement, compared to the net loss of Bt15 million in the same period last year. Yet, it was due mainly to the foreign exchange gains of Bt2.3 billion, as the baht weakened against US dollar and the euro. Over half of the company's revenue is booked in dollar and euro.
The airline showed a 10 per cent increase (Bt4.5 billion) in the quarterly revenue, to Bt49.96 billion.
THAI President Piyasvasti Amranand said that the airline witnessed consistently high fuel price in the quarter. Given fierce competition in the commercial airline industry, especially on European routes, THAI was not able to sufficiently adjust fuel surcharge to cover the rapid rise in fuel cost.
In the third quarter, passenger traffic increased by 15.3 per cent from the second quarter 2011, which was also higher than third quarter of last year by 4.3 per cent. Cargo and Commercial Mail has been effected by Japan’s earthquake and tsunami since March 2011 and financial crises in Europe and the United States of America, which resulted in decreased freight demand.
