THAI Announces Third Quarter Results 2017
Thai Airways International Public Company Limited (THAI) and its subsidiaries announced its the third quarter results 2017 that had an operating profit of THB 739 million, an improvement from last year that had a reported loss of THB 836 million resulting from the continuing of transformation plan. Consequently, total revenue increased by 6.3% and non-fuel expenses were efficiently controlled; however, the jet fuel prices rose by 11.3%. After deducting one-time expenses which mainly comprised of impairment loss of assets and aircraft and loss on foreign currency exchange, THAI and its subsidiaries reported a net loss of THB 1,814 million.
Mrs. Usanee Sangsingkeo, Executive Vice President of Corporate Strategy and Sustainable Development, and Acting President of Thai Airways International Public Company Limited, said that in the third quarter, THAI continued the third phase of its transformation plan with “Sustainable Growth” from the previous quarter by taking delivery of new operating lease aircraft. When compared to the end of 2016, THAI added four new aircraft to its fleet, which grew to a total of 99 aircraft. Aircraft utilization increased by 4.3% from 11.6 hours to 12.1 hours when compared to the same period last year. Production traffic (ASK) increased by 7.9% but passenger traffic (RPK) increased by 14.9% from the same quarter of last year. The cabin factor averaged 78.2%, which was higher than 73.5 % last year and 5.99 million passengers were carried, and representing a 8.9% increase from last year.
THAI and its subsidiaries’ operating profit was THB 739 million, while there was a loss of THB 836 million last year. Total revenue was THB 46,928 million, an increase from the same quarter of last year by 6.3% due to an increase of passenger and excess baggage revenue by THB 2,470 million (6.9%) from the increase in passenger traffic by 14.9%, despite a drop in average passenger yield by 7.5% due to intense price competition. Freight and mail revenue increased by THB 577 million (12.7%) from the recovery in the export sector. While total expenses amounted to THB 46,189 million, an increase of THB 1,227 million (2.7%) due to an increase in fuel expenses by THB 1,032 million (9.5%) resulting from an increase of 11.3% in average jet fuel price. Non-fuel operating expense was close that of last year. Net finance cost decreased from last year by THB 112 million or 8.7% resulting from cash management and financial restructure.
This quarter, THAI and its subsidiaries had one-time expenses at the amount of THB 537 million and impairment loss of assets and aircraft at the amount of THB 1,502 million. In addition, the loss on foreign currency exchange was THB 829 million. Consequently, THAI and its subsidiaries reported a net loss of THB 1,814 million. Loss attributable to owners of the parent amounted to THB 1,825 million. Loss per share was THB 0.84 per share, THB 0.11 or a loss that was 15.1% higher than last year.
As of September 30, 2017, THAI’s consolidated total assets were THB 287,889 million, an increase of THB 4,765 million (1.7%) from December 31, 2016. Total liabilities were THB 257,961 million, which was an increase of THB 8,425 million (3.4%) from December 31, 2016. Shareholders’ equity totaled THB 29,928 million, a decrease of THB 3,660 million (10.9%) from December 31, 2016, due to loss from operations for the first nine months of 2017.