Thai Airways Sees Profit Drop, Restructuring Nears

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Thai Airways company has stated recently its second quarter operating profits in financial year 2024 reduced while the airline enhances its capital restructuring programs. It is preparing to file registration statement for the use on offering of securities and draft prospectus with Thailand Securities and Exchange Commission. This is part and parcel of the company’s plan to effect a debt-to-equity conversion and a new share sale by the year end. Such actions are aimed at putting Thai Airways in the ‘positive equity’ in the 2024 AFS which is an important ingredient in the success of ongoing rehabilitation plan.

For the Q2 of the current fiscal, Thai Airways incurred net profit of THB 306 million, a drop from the THB 2. Of which $3 billion profit it reported in the same quarter of the preceding fiscal. This the airline blamed on a myriad of factors even though passenger traffic recorded a 17 per cent increase in the same period. Shown an overall total revenue growth of 7% and it hit THB44 billion.

Notably, passenger revenue by was up 15. 9% year-on-year. But this was achieved at the backdrop of increase in the number of cases by 32. a high operating cost of 1 percent more than the previous year. The increase in cost was as a result of increased operation, higher cost of raw material and foreign exchange effect arising from depreciation of Thai baht. Foreign exchange losses and impairment charges were also amongst the other significant NG expenses that also put pressure on the airline’s financial results.

Tourism Surge Anticipated in 2024

Thai Airways anticipate a tremendous increased in tourism as the number of the foreign tourist that flow in Thailand is expected to rise by 25%. 9% to 35. 5 million in 2024. Some of this anticipated growth is attributed to Thailand’s expanding visa-free policy that was launched on 15th July this year.

As for fleet acquisition, Thai Airways says that it will own two Airbus A330-300s in late November or early December. Also starting in the fourth quarter, the airline moves to refurbish the cabins of A320 planes it operates. This consists of the managing of the retrofit of 12 business class seats on each A320neo which will change the aircraft to a two-class cabin with 12 business class seats and 144 economy seats.

Non-operational and decommissioned aircraft as of 30 June were one and 21, and active aircraft included 77 but also 21 ready for sale. The airline also ordered 45 Boeing 787-9s in later years, proposed to be delivered between the years 2027 and 2033. This order forms one of the fleet modernization and expansion strategies of Thailand’s national Flag carrier, Thai Airways. The airlines’ plan is to have a fleet size of 96 aircraft by the year 2033, with a possibility to get to 131 in the event where all the 35 Boeing 787 options are taken.

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