Thai Tourism Giants Defy Slowdown with Strong Profits
Major airlines and hotel groups post solid earnings despite a dip in tourist arrivals, showcasing robust management and diverse revenue streams
- Despite a slowdown in foreign tourist arrivals, particularly from the Chinese market, Thailand's major publicly listed airline and hotel companies reported significant profits in the first half of 2025.
- Three major Thai airlines collectively earned a net profit of 25.66 billion baht, a massive increase from 5.31 billion baht the previous year, largely driven by Thai Airways' 702.5% profit surge.
- Major hotel chains also demonstrated resilience, with companies like Minor International and Asset World Corporation posting multi-billion baht profits, supported by increased room rates and strategic growth.
Thailand’s tourism sector is showing a paradox.
While foreign visitor numbers have slowed in the first half of 2025 compared to last year, primarily due to a downturn in the key Chinese market, the country's major publicly listed airline and hotel businesses have reported significant profits, demonstrating resilience amid global economic fluctuations and other challenges.
Airlines Post 25 Billion Baht Profit
In the first six months of 2025, the airline industry as a whole saw a positive trend. The three main Thai carriers listed on the Stock Exchange of Thailand (SET)—Thai Airways, Thai AirAsia, and Bangkok Airways—together generated revenues of 134.88 billion baht, an increase from 129.25 billion baht in the same period last year.
More impressively, their combined net profit soared to 25.66 billion baht, a remarkable increase of 20.36 billion baht from the 5.31 billion baht they made the previous year.
The surge was largely driven by Thai Airways (THAI), which saw its net profit jump by 702.5% to 21.97 billion baht, up from 2.72 billion baht. This reflects the airline’s successful management under its business rehabilitation plan.
Following its exit from the rehabilitation programme, THAI’s shares were relisted on the SET on 4 August and were well-received by the market. With its share price trading at 16-18 baht, the company’s market capitalisation now stands at 418 billion baht, making it the 10th largest company on the SET.
Meanwhile, Thai AirAsia successfully turned a 325 million baht loss into a 1.60 billion baht profit, even though its revenue decreased slightly. This was attributed to a slowdown in tourist numbers from its key Asian markets.
Bangkok Airways also managed to remain profitable in the first half of the year despite a minor drop in revenue.
Hotels Show Resilience
Most major hotel chains also posted profits in the first half of the year.
The exception was Dusit Thani, which recorded a loss but still saw revenue growth compared to the previous year, thanks to increased earnings from its Dusit Thani Bangkok and Dusit Residence properties.
Minor International (MINT) posted the highest net profit at 3.50 billion baht, a drop of 11% year-on-year, though its operating revenue exceeded 80 billion baht.
The company's performance was bolstered by a 6% increase in average room rates across its hotels in Europe and America, a 23% rise in the Maldives, and a 4% increase in Thailand.
Asset World Corporation (AWC) reported a net profit of 3.37 billion abht, up 18.4%. The company, which saw the highest revenue growth at 10.9% to 11.40 billion baht, credits its "Growth-Led Strategy," the addition of new properties, and a diversified portfolio.
AWC also recently launched "Jurassic World The Experience" at Asiatique The Riverfront to attract tourists during the low season.
S Hotels and Resorts (SHR), a subsidiary of Singha Estate, recorded the highest profit growth rate, with a net profit of 200 million baht, a remarkable 399% increase.
This was the highest first-half net profit in the company's history, driven by a downward trend in interest rates and its ability to refinance high-cost loans to lower-cost sources, thereby reducing interest expenses.
Positive Outlook for the Second Half
Both the airline and hotel sectors remain optimistic about the second half of the year and have plans to maintain growth.
Chai Eamsiri, CEO of Thai Airways, said the airline’s revenue is on track and meeting its targets. He noted that the company’s passengers are primarily from long-haul markets, which are less affected by the slowdown in Asian tourism.
As of 30 June 2025, Thai Airways had a cash reserve of 120.01 billion baht, and its strong performance will allow it to expand its fleet and improve services.
Santisuk Klongchaiya, CEO of Asia Aviation (AAV), stated that Thai AirAsia will continue its flexible management approach in the second half of the year.
The airline will reduce capacity on less popular routes and increase flights on domestic and "Fifth Freedom" routes. Thai AirAsia launched new routes from Suvarnabhumi to Buri Ram, Surat Thani, and Narathiwat on 1 July and will add Chiang Rai and Nakhon Si Thammarat on 1 October.
The airline is also expanding its international routes to places like Phuket-Kochi (India) and Phuket-Medan (Indonesia), as well as new Fifth Freedom routes, "Don Mueang-Hong Kong-Okinawa" and "Chiang Mai-Taipei-Sapporo."
Wallapa Traisorat, CEO of AWC, said her company is set to open its new "Lannatique Kalare" project in Chiang Mai. She noted that AWC is benefiting from the government's "Teaw Thai Kon La Khrueng" domestic tourism stimulus programme, which has particularly boosted business at its hotels in Hua Hin and Pattaya.
The company's partnership with a global network of over 710 million tourists has also increased direct bookings to as high as 70%, with significant growth in advance bookings in major tourist provinces like Chiang Mai, Samui, Krabi, and Pattaya.
