Thai Airways earns higher operating profit in first quarter of 2018
- A Monitor Report 01 Jun, 2018 | 281 Views | -+
An aircraft of Thai Airways
Bangkok : Thai Airways International Public Company Limited (THAI) and its subsidiaries announced its first quarter results of 2018 that had an operating profit of THB 3,836 million, 49.4 per cent over the same period last year.
The higher operating profit is resulting from increase in revenue including; a) passenger and excess baggage revenue; b) freight and mail revenue; and c) revenue from other activities. However, fuel expenses increased in line with rising jet fuel prices. The one-time expense for that quarter was mainly from impairment loss of assets and aircraft at THB 2,473 million. THAI had a THB 583 million gain on foreign currency exchange which was mainly from balance sheet revaluation.
Consequently, THAI and its subsidiaries reported a net profit of THB 2,737 million.
Usanee Sangsingkeo, THAI Acting President, said that THAI established a business transformation plan for 2018 with the objective to ensure continuous and sustainable operating results and to increase efficiency and improve quality of service to be comparable to global standards. The plan consisted of five core strategies: 1) Creating profits from increasing revenues, controlling cost structure by adopting low-cost business models; 2) Transforming business units to profit centers by seeking new business opportunities and increasing efficiency in asset management; 3) Improving and integrating service ring for better customer engagement, 4) Implementing digital applications to increase performance and got competitiveness; and 5) Developing human resources focused on organizational structure and culture, leadership, and human resource development.
During that quarter, THAI and its subsidiaries received delivery of four new Airbus A350-900 aircraft that will be operated on intercontinental and regional routes. As of March 31 2018, there are 104 aircraft in the fleet, with nine more aircraft than the same period last year. Production traffic (ASK) increased by 4.9 per cent while passenger traffic (RPK) increased by 2.2 per cent Average cabin factor was 80.6 per cent , which almost matched the 80.9 per cent industry average but lower than last year's cabin factor of 82.8 per cent with 6.25 million passengers carried, representing 4.1 per cent less than last year.
THAI and its subsidiaries' total revenue was THB 53,466 million, which increased by THB 3,662 million or 7. per cent when compared to the same period last year, due to the increase in passenger and excess baggage revenue, freight and mail revenue, and increased revenue from other activities. Total expenses were THB 49,630 million, increased by THB 2,393 million (5.1 per cent) on the back of the increase in fuel expenses by THB 1,189 million (9.3 per cent).