Thai Airways revenue soars over 23% year on year in the third quarter
Thai Airways International (THAI) has reported a net profit of 12.4 billion baht in the third quarter, higher than the profit in the first two quarters of the year, bolstered by increased revenue and favourable exchange rates.
As part of its ongoing rehabilitation plan, THAI is set to convert debt into equity. Creditors will have the opportunity to do so from November 19 to 21. The airline aims to seek court approval to end its business rehabilitation by the second quarter of 2025.
In a statement released on Friday, THAI and its subsidiaries reported total revenue, excluding one-time items, of 45.83 billion baht, marking a 23.8 increase compared to 37 billion baht during the same period last year. The airline carried 3.94 million passengers, achieving an average cabin factor of 76.1%, a slight decrease from 77.3% in the previous year.
Key financial highlights:
- Third quarter:
Revenue: 45.83 billion baht, a 23.8% increase year on year
Operating profit: 7.19 billion baht.
Net profit: 12.48 billion baht.
- First nine months of 2024:
Net profit: 15.22 billion baht.
As of September 30, THAI operated a fleet of 77 aircraft, including 20 narrow-body and 57 wide-body models. The airline received two new wide-body aircraft on operating lease in October, bringing the total for 2024 to nine new additions.
Meanwhile, THAI reported total assets of 263.74 billion baht, a 10.4% increase from December 31, while total liabilities rose by 3.4% to 291.68 billion baht. The shareholders' equity for THAI and its subsidiaries now stands at -27.94 billion baht, showing an improvement of 15.20 billion baht from the start of the year, attributed to positive financial performance. THAI also reported cash and near cash equivalents amounting to 82.59 billion baht as of the same date.
Throughout the first nine months of 2024, THAI has repaid 3.53 billion baht as per the rehabilitation plan.
Progress of rehabilitation plan
THAI is undergoing a significant restructuring process. Key components of the plan include:
- Debt-to-equity conversion: Creditors will have the opportunity to convert their debt into newly issued shares.
- Share issuance: The airline will issue new shares to existing shareholders.
- Court approval: THAI aims to seek court approval to exit its business rehabilitation by the second quarter of 2025.
The filings are currently under review by the Securities and Exchange Commission and the Stock Exchange of Thailand. Creditors are expected to express their intentions regarding the conversion of debt into capital from November 19 to 21, encompassing both voluntary conversions and new interest debt.
THAI vowed to remain committed to delivering sustainable long-term growth and strengthening its position in the global aviation industry.
