Thai Airways reports Q2 profit, pushing H1 earnings to 2.7bn baht
Revenue in second quarter rises 17.7% but earnings plummet by nearly 2 billion baht on rising operational costs and currency depreciation
Thai Airways (THAI) and subsidiaries reported a steep decline in second-quarter 2024 profit, with net earnings falling to 314 million baht – a drop of 1,959 million baht from the same period last year. Profit attributable to the parent company was 306 million baht, according to THAI’s report to the Stock Exchange of Thailand (SET) on Friday.
This translates to earnings per share of 0.14 baht, a drop of 0.90 baht (86.5%) from last year.
Friday's announcement took the airline’s H1 2024 profit to 2.7 billion baht, down from 14.7 billion baht the previous year.
As of June 30, 2024, THAI operated 77 aircraft and reported total assets of 270.526 billion baht and liabilities of 310.956 billion baht.
The total number of passengers carried in Q2 was 3.81 million, a year-on-year increase of 3.4%.
The airline also signed a long-term fleet acquisition agreement with Boeing for up to 80 wide-body 787 aircraft, aiming to increase capacity and replace older planes by 2036.
The fall in Q2 profit was attributed to several factors. The company experienced a 32.1% increase in total expenses, driven by expanded operations, higher raw material costs, and a weaker baht, which inflated expenses denominated in foreign currencies. Additionally, one-off items such as foreign exchange losses and asset impairments further weighed on the financial performance.
Despite these setbacks, THAI and subsidiaries recorded total revenue of 43.981 billion baht for the quarter, an increase of 17.7% from the same period last year.
Revenue growth was driven by the increased number of flights and routes to meet the rising passenger demand.
THAI said it will resume services on the Bangkok-Brussels route on December 1 this year, while increasing flight frequencies to Nagoya, Lahore, Islamabad, and Denpasar.
The airline is currently preparing its securities offering statement and draft prospectus to the Securities and Exchange Commission and the SET as part of capital restructuring under its rehabilitation plan.
THAI expects to complete its debt-to-equity conversion and issue additional common shares by the end of this year, as stipulated in the rehab plan.
