THAI losses Bt12 billion in 2019
Thai Airways International (THAI) and its affiliates witnessed a net loss of Bt12.017 billion in 2019, Bt448 million – or 3.9 per cent – higher than the previous year, the airline announced today (March 2). This translates to Bt5.52 loss per share, Bt0.19 higher than the previous year, or 3.6 per cent.
Vice president of finance and accounting Nattaphong Smit-Ampaisal said that in 2019 the company was affected by several negative factors, including a slowdown in global economic expansion, the US-China trade war, natural disasters, the strengthening of the baht – which was the highest in six years – as well as a price war with other airlines.
“Furthermore, the company and its affiliates had to set aside Bt2.689 billion as a reserve fund for employees who wished to retire early,” he said, referring to the State Enterprise Labour Committee’s announcement that requires state enterprises to pay early retirement packages equal to 400 days of wages to employees who had been working more than 20 years, from the previous requirement of 300 days. The regulation came into effect at the start of the third quarter of 2019.
According to Nattaphong, in 2019 THAI and its affiliates earned Bt184.046 billion in revenue, Bt15.454 billion lower than the previous year, or 7.7 per cent.
“The revenue from passenger and cargo transport decreased by 8.6 per cent, or Bt15.767 billion, while the total expenditure stood at Bt196.470 billion, Bt12.088 billion, or 5.8 per cent, lower than last year.”
Nattaphong attributed the drop in expenditure to decreasing fuel cost by 9 per cent, or Bt5.421 billion.
THAI and its affiliates have 103 planes in operation, with an aircraft utilisation rate of 11.9 hours per day, lower than the previous year’s 12 hours per day. The reported cabin occupancy factor in 2019 was 79.19 per cent, higher than the previous year at 77.6 per cent, with 24.51 million passengers, an increase of 0.8 per cent from the previous year.
As of December 31, 2019, THAI and its affiliates possessed total assets of Bt256.665 billion, Bt12.056 billion lower than in 2018, or 4.5 per cent. Total debt in 2019 stood at Bt244.899 billion, Bt3.366 billion lower than the previous year, or 1.4 per cent. Shareholders’ equity was Bt11.766 billion – Bt8.69 billion, or 42.5 per cent, lower than the previous year.
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