THAI misses cost-cutting target, but expects to swing to annual profit: CFO

THAI is likely to miss its annual cost-reduction target, but will swing to a profit for 2016 after three straight years of losses due to lower fuel costs, a top company executive said Monday. The carrier is one of several state-controlled firms undergoing reform in the country since the military seized power in May 2014. Over the past two years, it has cut unprofitable routes, while a plunge in oil priceshas provided it a tailwind by lowering its single-biggest expense - jet fuel. However, it has fallen short of its target to cut expenses by 10 percent for the year as "cost reduction plans have not been fully implemented", CFO Narongchai Wongthanavimok said. The company's total operating expenses fell by 7.9% over the first nine months of the year, he said. Hit by fierce competition and a weak economy, Thai Airways has reported annual losses since 2013. But the outlook has improved this year, underpinned by restructuring and lower fuel costs. Last week, the carrier posted Q3 results, which showed losses narrowing from year-ago levels. THAI expects a profit in Q4 as more people travel during the holiday season, Narongchai said. This is in line with what analysts have been expecting.<br/>