THAI Q2 profit falls as fuel costs surge; Bangkok Airways H1 profit rises

Thai Airways International (THAI) reported a net profit of 1.54 billion baht for the second quarter of 2026, down from 12.13 billion baht in the same period last year, as the Middle East conflict drove jet fuel prices sharply higher.

Bangkok Airways, meanwhile, reported a first-half net profit of 2.43 billion baht, an increase of 16.3% year on year, despite continued economic volatility and the impact of the conflict on the aviation industry.

THAI revenue rises but fuel costs weigh on earnings

THAI recorded second-quarter revenue, excluding one-off items, of 48.62 billion baht, up 3.79 billion baht, or 8.5%, from the same period last year.

The airline attributed the increase mainly to a 20.3% rise in average passenger yield, including fuel and insurance surcharges but excluding excess baggage revenue. THAI had reviewed its fuel surcharges to reflect prevailing jet fuel prices and competitive market conditions.

However, expenses excluding one-off items surged 29.7% year on year to 44.93 billion baht, mainly because of higher jet fuel prices resulting from unrest in the Middle East. Average fuel prices were 104.6% higher than in the same quarter last year.

The airline recorded an operating profit before finance costs, excluding one-off items, of 3.69 billion baht.

Finance costs totalled 3.17 billion baht, while net one-off items contributed revenue of 335 million baht. THAI consequently posted quarterly net profit of 1.54 billion baht and earnings before interest, tax, depreciation and amortisation, or EBITDA, of 8.18 billion baht.

Passenger traffic declines after flight reductions

As of June 30, THAI operated a fleet of 84 aircraft, with average utilisation of 12.9 hours per aircraft per day. The airline carried 3.66 million passengers during the quarter.

Available seat kilometres fell 4.4% year on year to 16.78 billion seat-kilometres, after the airline reduced flights in response to the Middle East conflict and weaker passenger demand.

Revenue passenger kilometres declined 11.3% to 11.99 billion passenger-kilometres, lowering the average cabin factor to 71.5%, from 77% in the same period last year.

As of June 30, THAI had total assets of 322.09 billion baht, up 5.9% from the end of 2025. Total liabilities rose 5.3% to 240.25 billion baht, while shareholders’ equity increased 7.8% to 81.83 billion baht.

Cash and cash equivalents, together with other current financial assets, totalled 123.76 billion baht.

THAI posts 11.65bn-baht first-half profit

For the first six months of 2026, THAI recorded revenue excluding one-off items of 99.65 billion baht, up 3.3% from the same period last year.

Expenses excluding one-off items rose 14.4% to 82.21 billion baht, leaving operating profit before finance costs of 17.44 billion baht.

Finance costs amounted to 6.15 billion baht, while net one-off revenue totalled 1.42 billion baht, mainly from gains related to the termination and modification of aircraft lease agreements.

THAI posted a net profit of 11.65 billion baht for the first half of the year.

During the period, the airline took delivery of five narrow-body Airbus A321neo aircraft, three wide-body Boeing 787-8s and one Boeing 787-9 to strengthen its fleet and support future route expansion.

THAI said it would continue to monitor the Middle East situation closely and adjust its operating plans accordingly, while maintaining disciplined cost management and sufficient liquidity to support competitiveness and sustainable growth in the second half.

Bangkok Airways first-half profit rises 16.3%

Bangkok Airways Public Company Limited announced on August 11 that its total revenue in the second quarter reached 6.05 billion baht, an increase of 5.5% year on year.

Total expenses rose at a faster rate of 11.7% to 5.53 billion baht, leaving the airline with quarterly net profit of 332.6 million baht.

For the first six months of 2026, Bangkok Airways recorded total revenue of 13.93 billion baht, up 3%, while expenses increased 2.3% to 10.62 billion baht.

The airline’s first-half net profit rose 16.3% from the same period last year to 2.43 billion baht.

Puttipong Prasarttong-Osoth, president of Bangkok Airways, said the results reflected the company’s ability to generate revenue and manage costs efficiently despite economic volatility and the continuing conflict in the Middle East.