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Thai Airways narrowed its second quarter loss as passenger travel demand increased due to the opening of borders.
The national carrier, which is undergoing a business restructuring, posted an operating loss of Bt1.3 billion ($36.6 million) for the quarter to June 30, down from a loss of Bt4.4 billion in 2021.
Revenue for the quarter tripled to Bt21.5 billion, with passenger revenue jumping 14 times year-on-year.
The carrier flew nearly seven times as many passengers in the quarter to just over 2 million passengers, quadrupling capacity year over year.
Thai Airways more than doubled its expenses every quarter, with operating costs rising due to increased flights. Carrier Star Alliance added that rising fuel prices are driving up costs.
Thai Airways It reverted to a loss of Bt3.2 billion in the quarter, compared to a net profit of Bt23.3 billion in 2021. This is due to foreign exchange losses and one-time property damage costs.
Some of the losses were one-time income, primarily gains from debt restructuring, as well as gains on investments and asset sales.
In the first half of the year, Thai Airways and its affiliates narrowed their operating loss from Bt11.4 billion in 2021 to Bt4.5 billion this year.
Revenue at Bt32.7 billion more than tripled year-on-year, reflecting a 72 percent increase in spending to Bt37.1 billion.
In his view, he said the carrier will continue to add frequencies on its global network as Thailand moves to fully reopen the country on July 1.
On the ongoing restoration plans, the carrier says: “[Thai Airways] Revised the business plan and increased revenue resulting in…better cash flow levels that changed dramatically. Hence, the rate of demand for new loans is reduced from the beginning.
“[It is] It is a major step in laying the foundation for Thailand’s growth and profitability as the national flag carrier, the main profitable airline for the country, and to support and promote Thailand’s economic recovery. In the future,” he adds.
The extensive losses of the parent of Thai Airasia
Separately, compatriot Thai AirAsia’s parent company widened its second-quarter operating loss, despite a sharp increase in revenue due to the reopening of borders.
Compared to a second quarter loss of Bt2.8 billion in 2021, Asia Aviation was in the red by Bt5 billion.
The company’s quarterly revenue more than doubled to 2.8 billion, while its expenses doubled year-on-year to nearly 7.8 billion.
Asia Aviation blamed higher fuel prices for the quarter’s higher costs, sales and services, as well as EMR costs, as the airline ramped up its operations.
Still, the company said it is optimistic this year, with domestic tourism expected to lead the recovery.
“Currently, Thailand’s AirAsia aims to maintain its domestic capacity there by the end of 2019 before the Covid-19 outbreak. It is working together with the opening plan of the destination country to open more international routes.
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