Thai Airways tops THB10bn Q1 profit as cost curbs blunt Middle East risk
Thai Airways says Q1 net profit rose 2.7% to THB10.107 billion as lower fuel and finance costs helped offset weaker revenue and passenger traffic.
- Thai Airways reported a net profit of THB10.107 billion for the first quarter, a 2.7% increase compared to the same period last year.
- The profit was achieved through effective cost management, including a 10.7% reduction in fuel costs and a 14.2% drop in finance costs, which offset a slight 1.2% decrease in total revenue.
- The airline benefited from geopolitical tensions in the Middle East, as revenue on European routes grew 2.8% from passengers choosing non-stop flights to avoid stopovers in conflict zones.
- Despite challenges, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 4.9% to THB17.548 billion.
Thai Airways International Public Company Limited (THAI) announced its operating results for the first quarter of 2026 on Thursday (May 14, 2026), showing strength and a continued recovery.
Thai Airways recorded a net profit of THB10.107 billion, up THB268 million (+2.7%) from the same period last year.
Net profit attributable to owners of the parent was THB10.093 billion, representing earnings per share of THB0.36, up from THB0.35 in the same period last year.
EBITDA was THB17.548 billion, up THB819 million (+4.9%) year on year.
That came despite challenges on several fronts, including a slowing global economy and intensifying geopolitical tensions in the Middle East.
In the first quarter of 2026, Thai Airways had total revenue, excluding one-off items, of THB51.029 billion, down slightly by 1.2% year on year.
The main reason was a decline in transport services revenue in line with a 3.5% fall in capacity and passenger traffic, with total passenger numbers at 4.18 million.
However, the company managed expenses effectively, with total expenses, excluding one-off items, at THB37.282 billion, down 1.8%.
A key factor was a 10.7% fall in fuel costs, due to capacity management and the baht’s appreciation, despite a slight rise in global oil prices.
This resulted in EBITDA of THB17.548 billion, up 4.9%.
Finance costs also fell by 14.2%, or THB494 million, due to the conversion of aircraft contracts from leases to purchases for Boeing 777-300ER and Airbus A320-200 aircraft.
In the quarter, the company recorded net income from one-off items of THB1.088 billion.
Key factors were a gain of THB1.435 billion from aircraft lease cancellations, arising from the change from lease to purchase contracts, and a gain of THB649 million from derivative instrument valuation.
For asset management, the company sold unused aircraft, comprising one Airbus A380-800 and one Boeing 777-200, to improve the efficiency of its fleet structure.
European routes outperform as Asia routes decline
Results by region showed:
European routes: revenue rose 2.8% to THB16.082 billion, benefiting from the situation in the Middle East, which led more passengers to choose Thai Airways’ non-stop flights to avoid stopovers in conflict areas.
The cabin factor reached 90.5%.
Australian routes: revenue grew 1.7% due to increased connecting travel from Europe.
Asian routes: revenue fell 6.2% because of intense competition and reduced frequency on some routes, such as Nagoya, as well as the cancellation of the Kochi route.
Domestic routes: revenue was THB2.143 billion, down 2.2%, following seat reconfiguration on Airbus A320-200 aircraft to add business class.
Upgrading service with technology and a new fleet
Thai Airways continued to move ahead with efforts to improve passenger satisfaction, launching its first Airbus A321neo on Friday (January 16, 2026).
The aircraft features the “Your Personal Room Concept” in business class, with seats that recline into a 180-degree flat bed and a 4K in-flight entertainment screen.
It has also installed high-speed multi-orbit internet, supporting maximum speeds of 200-300 Mbps, to meet digital-era lifestyle needs.
Financial position and liquidity remain strong
As of Tuesday (March 31, 2026), Thai Airways had total assets of THB324.542 billion, up 6.7% from the end of 2025, with cash and cash equivalents of THB85.318 billion, reflecting its strong ability to generate operating cash flow.
Including other current financial assets, such as fixed deposits with maturities of more than three months but not more than one year, the company had total cash and cash equivalents of THB132.32 billion, up THB8.76 billion from the end of 2025.
Total liabilities stood at THB235.92 billion, up 3.4% due to obligations under new aircraft lease contracts.
However, the interest-bearing debt-to-equity ratio, or IBD/E, fell from 1.55 times to 1.35 times, indicating a stronger financial structure.
Six proactive measures to address challenges
Despite its strong performance, Thai Airways continued to monitor future risk factors, particularly a fuel shortage that IATA expected could lead to the cancellation of some flights in Europe and Asia in May 2026.
This also included the Tourism Authority of Thailand’s reduction of its foreign tourist arrival target to 30-34 million, due to obstacles from the trade war and oil price volatility.
To cope with this uncertainty, Thai Airways has set out six proactive management measures:
- Managing fuel costs and hedging risks
- Adjusting route network and frequency plans in line with demand
- Managing revenue and setting appropriate ticket prices
- Strictly controlling expenses and delaying non-urgent investments
- Maintaining adequate liquidity
- Conducting stress tests and scenario analyses to prepare for all situations
Thai Airways confirmed its readiness to provide services under its 2026 summer schedule, covering 62 routes worldwide, and is preparing to resume daily flights on the Bangkok-Amsterdam route from Wednesday (July 1, 2026) onwards.
