THAI may miss Bt180 bn revenue goal
Play
Thai Airways International (THAI) President Charamporn Jotikasthira said yesterday that the airline may not achieve the Bt180-billion revenue targeted for this year, amid delay in some cost-cutting plans and the occurrence of several non-current expenses
He pointed out that the carrier would be unable to meet its plan to cut costs by Bt10 billion this year. In the first half, the airline failed to cut any costs, but still hopes it will be able to cut Bt5 billion over the rest of the year.
Yesterday, THAI reported a net loss of Bt12.76 billion in the second quarter. Of the total, Bt3.7 billion was on account of early-retirement programmes and another Bt3.68 billion from foreign exchange losses.
Thanks to flight adjustment plans, the airline saw a 20-per-cent rise in the number of passengers in the quarter and an 11-per-cent increase in Revenue Passenger-Kilometre (RPK). The cabin factor rose from 63.5 per cent last year to 69.2 per cent. Yet, total revenue
dropped by 4 per cent on year to Bt41.8 billion due to the decommissioning of cargo aircraft. Total expenses showed a 9-per-cent drop to Bt45 billion, thanks mainly to the lower fuel prices.
According to Charamporn, the airline would lower its load-factor projection for this year the initial forecast of 85 per cent to 76 per cent. The revised forecast will still be higher than the 71 per cent seen last year.
To gain more passengers, the airline plans to open several new routes to China, which has become one the top four markets for THAI.
Narongchai Wongthanavimok, the airline’s executive vice president and chief financial officer, said the company had been considering selling properties in Thailand and overseas, particularly offices and staff residences, and divesting shares in other business. Properties to be sold could be worth up to Bt10 billion.
Details of the plan will soon reach the board of directors for consideration.
Last year, the airline sold 10 old aircraft as part of its cost-cutting plans. So far this year, it has sold another 17 planes. It is placing 21 aircraft on the market for sale.
Meanwhile yesterday, Asia Aviation, major shareholder of Thai AirAsia, said its earnings for the second quarter were Bt6.8 billion, up 26 per cent year on year. Net profit was Bt374 million, reversing losses from the same period of last year on the back of higher average fare income due to greater demand and lower average fuel costs. In the first half, revenue was Bt14.6 billion and net profit Bt1.2 billion.
Bangkok Airways yesterday reported that its revenue in first half was Bt12.2 billion, up 12 per cent from Bt10.9 billion in the first six months of last year.
