Record-setting second quarter profits for Thai Airways

A THAI Airways A320 on the tarmac.
Photo Credit: THAI Airways

Thailand’s flag carrier Thai Airways (THAI) has recorded the strongest second quarter in over 2 decades; revealed in the airline’s Operational Performance Results for the Second Quarter of 2023.

Record-Setting 2nd Quarter 

In the second quarter of 2023, Thai Airways International Public Company Limited (THAI) and its respected subsidiary reported an impressive total revenue, excluding one-time transactions at 37,381 million Thai baht.

This number is higher than the same period of last year (2022) recorded at 21,526 million baht. This is a 73.7% increase, but nevertheless 9.9% lower than the first quarter of 2023 due to the second quarter being quiet on the travel period of both inbound and outbound traffic. 

Photo Credit: Thai Airways

Increased Frequencies 

In light of the increased demand for THAI’s flights, the airline has increased its flights to destinations in Japan and China, with an overall total of 3.35 million passengers, with 79.% of an average in cabin factor, higher than 2022 of 60.3%. 

THAI’s subsidiaries reported a total expense of 28,805 million baht excluding one-time transactions. This is, however, higher than in 2022 which was at 22,825 million baht from an increase in variable costs.  

With an increase in variable cost as expected, the subsidiaries posted an operating before financial costs and excluding one-time transactions, at 8,576 million baht, an improvement from 2022 during the same quarter. In the 2022 quarter, however, reported an operating at 1,299 million baht. 

Highest in 20 Years! 

THAI has recorded the highest operating profit in 2023 in the 2nd Quarter of 2023. According to Financial Reporting Standard No. 9, the airline and its subsidiary’s financial costs stood at 3,967 million baht.

The airline and its subsidiaries had one-time items largely due to losses on the foreign exchange market, resulting in total expenses of 2,643 million baht. 

THAI and its subsidiaries reported a net profit of 2,273 million baht compared to the same period last year of a net loss of 3,213 million baht.

The profit largely attributed to the parent company which stood at 2,262 million baht. Moreover, earnings before interest, tax, depreciation, and amortization (EBITDA), including after cash paid for aircraft lease payments including Power by the Hour amounted to 9,307 million baht.  

In the first half of 2023, the airline and its subsidies reported a total revenue, excluding one-time transactions of 78,889 million baht, which is seemingly higher than the same period of 2022 which stood at 32,706 million baht. 

Total expense, on the other hand, the total expense excluding one-time transactions where at 57,280 million baht, much higher than 2022 levels at 37,175 million baht.  

THAI’s Fleet Portfolio and Utilisation  

The airline has a total of 67 active aircraft, with 20 of those narrow-bodied and 47 as widebodies. This is a huge decrease from the pre-pandemic of 100+ aircraft in service. 

In this quarter alone, the airline took two deliveries of two leased A350-900 and more to come. 

The first of this year witnessed an average aircraft utilization of THAI and her subsidies stood at 12 hours per day, while utilisations of only THAI’s aircraft were at 14 hours per day. 

Moreover, traffic production, or ASK rose by 76.9% while passenger traffic (RPK) rose by 192.8%, having a positive impact on the average cabin factor of 81.4%, which is higher than last year of 49.2%. 

Overall, THAI and its subsidiaries carried 6.87 million passengers, an increase of 126.7% year-on-year! 

By Indy Udol 4 Min Read
4 Min Read
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