The flag carrier of Thailand, Thai Airways International Public Company Limited (THAI) reported a fruitful year that ended in a strong fourth quarter.
In the fourth quarter, the airline’s total revenue was 36,902 million baht or 1 billion USD. This is 367% higher than the same period last year. However, the total expenses accumulated to 28,020 million baht or approximately 802 million dollars.
The airline’s operating profit (EBIT) was recorded at 8,882 million baht or 229 million USD, which is significantly higher than last year of an operating loss of 2,579 million baht.
Last quarter’s figures signify a continuous profit in the last two quarters of 2022, due to the pent-up demand for air travel in Asia and the incoming traffic to Thailand.
Thai Airways net profit totalled 11,1154 million baht or 318 million USD. Its earnings before interest, tax, depreciation and amortization (EBITDA) stood at 11,061 million baht or 316 million USD, which is significantly higher than last year by 660%.
The Thai airline recorded a total revenue of 97,514 million baht or 2.7 million dollars respectively, which is higher than in 2022, by 341% due to an increase in both traffic from passenger and cargo revenue.
However, expenses also increased as expected, which stood at 86,307 million baht or 2,4 million USD, which is higher than last year’s number of 127%.
Most cost-related factors are due to the rise in the costs of transportation, including wages and oil prices.
The airlines operating profit stood at 11,207 million baht or 320 million USD, which is higher than last year which stood at a staggering loss of 15,906 million baht or 455 million USD.
The airline and its subsidiaries recorded an Available Seat Kilometers (ASK) 243% higher than the previous fiscal year (2021). Moreover, Revenue Passenger Kilometers (RPK) stood at 1,118% higher than last 2021, while cabin factor came in at 67.9%, which was higher than 19.1% in 2021.
The cabin factor may not seem impressive, but with China reopening, we would see this figure improving dramatically. Moreover, the total number of passengers recorded at 9 million, which is 449% higher than in 2021.
Moving forward cautiously
Thai Airways is now bracing for a busy year ahead with revamp in its global operations and course, the reopening of China.
The summer of 2023, will be a busy period for the airline, as Thai will increase its frequencies to destinations such as Tokyo (Narita and Haneda), Osaka, Seoul, Taipei, Hong Kong, Singapore, Kolkata and Mumbai.
Moreover, we also have covered an article that Thai will also resume flight services to destinations in China namely Beijing, Shanghai, Kunming, Chengdu and Guangzhou.
These destinations in China are cause for optimism for the Thai carrier, as they are nearly out of the pandemic woods.
With that being said, the airline still hasn’t restored its flights to Europe and Australia, and even to Japan and South Korea completely. These destinations include Busan, Brisbane, Brussels, Milan, Rome, Oslo and Vienna.
With the continuous rise in demand, the airline is eyeing fleet expansion, with a proposed plan to introduce 6 new Airbus A350s into the fleet by the end of this year.