Airlines see steep plunge in Q2 as Covid-19 ravages business
The performance of airlines listed in the Stock Exchange of Thailand crashed due to travel restrictions imposed to prevent the spread of Covid-19 as well as intensified competition in the second quarter, experts said.
Chansin Treenuchagron, Thai Airways International (THAI) acting president, explained that in the second quarter of this year, the company lost Bt5.339 billion, down from Bt6.883 billion in the same period of the previous year.
"Revenue totalled Bt2.492 billion, down 94.1 per cent from Bt40.017 billion in the same period of the previous year, while expenses amounted to Bt16.193 billion, down 67.4 per cent due to temporary flight suspension and decline in personnel expenses as a result of cost reduction measures," he said.
"In the first six months this year, the company lost Bt28.016 billion, up 355 per cent from Bt6.438 billion in the same period of the previous year."
He said as of June 30, THAI had circulating liabilities higher than circulating assets of Bt262.244 billion, while the capital deficit was Bt18.228 billion, adding that the airline has been suffering losses since 2013.
"Therefore, the company is currently preparing a rehabilitation plan to propose to debtors," he said.
He said in the second quarter of this year, the Covid-19 pandemic had severely impacted the global aviation industry, while passengers temporarily cancelled flights.
"The company organised only cargo and charter flights during the second quarter, causing the volume of available seat kilometres and passenger transport to drop by 96.5 per cent and 99.5 per cent, respectively," he said.
"The passenger ratio was 10.3 per cent, down from 74.7 per cent in the same period of the previous year, while the number of passengers was 0.08 million people, down 98.6 per cent year on year."
Nok Air's net loss in the first quarter this year was Bt2.330 billion, up from Bt304.15 million in the same period of the previous year.
As of March 31 this year, the company and its subsidiaries' assets were worth Bt31.148 billion, while liabilities totalled Bt36.286 billion, up 94.68 per cent from December 31, 2019 due to recognition of Bt16.532 billion lease liabilities after using the International Financial Reporting Standards 16.
Asia Aviation (AAV)'s net loss in the second quarter was Bt1.141 billion, up from Bt482.47 million in the same period of the previous year.
In the first six months this year, the company's net loss was Bt1.812 billion, against the Bt14.72 million net profit it made in the same period of the previous year.
As of June 30 this year, the company's liabilities were Bt52.118 billion, up Bt16.904 billion, or 48 per cent.
Although Bangkok Airways has not announce its performance, an analyst at Capital Nomura Securities expected the company to lose approximately Bt1.581 billion, up both year on year and quarter on quarter.
