THAI takes revenue hit from fuel

THAI remains upbeat about its full-year revenue growth target of 5-10% despite a 47.3% drop in net profit in Q1 amid fierce competition and fuel price hikes. Usanee Sangsingkeo, THAI's acting president, said Monday that the company posted a Q1 net profit of 3.17b baht, down 47.3% year-on-year. The company's total revenue in the first three months was 49.8b baht, down 0.8% year-on-year, due to lower passenger and excess baggage revenue, decreasing fuel surcharges and tougher competition. Total expenses rose by 9.1% to 46.9b baht as fuel expenses climbed 18.5% to 2b baht. Jet fuel prices rose by 45.8% in the quarter. Usanee said high competition in the aviation industry resulted in the decline of the company's passenger yield by 12% from 2.5 baht per head per kilometre to 2.2 baht per head per kilometre. The profit decline was mainly attributed to the fuel price hike, she said, adding that fuel prices increased to an average of US$62 (2,141 baht) over the<br/>period, compared to $48 in Q1 last year. THAI's cabin factor in Q1 was as high as 82.8% with total passengers of 6.52m people, up from 77.5% in the same period of last year and higher than the industry's average cabin factor rate of 80.1%," Ms Usanee said.<br/>