Thai Airways narrows Q2 losses as travel recovers

Thai Airways narrowed its Q2 loss, as passenger travel demand soared with the reopening of borders. The embattled national carrier, which is undergoing business restructuring, posted an operating loss of Bt1.3b ($36.6m) for the quarter to 30 June, narrowing the Bt4.4b loss in 2021. Revenue for the quarter increased three-fold to Bt21.5b, with passenger revenue registering a 14-time jump year on year. The carrier flew nearly seven times more passengers in the quarter, at just over 2m, with capacity quadrupling year on year. Thai Airways doubled its quarterly expenses, with operational costs increasing with the ramp-up of flights. The Star Alliance carrier adds that an increase in fuel prices is driving its expenses up. Thai Airways swung back to a net loss of Bt3.2 billion for the quarter, compared to the Bt23.3 billion net profit in 2021. It attributes this to losses on foreign currency exchange, as well as one-time asset impairment costs. Some of the losses were offset by one-time revenue, mainly from gains on debt restructuring, as well as gains on sales of investment and assets. On a half-year basis, Thai Airways and its subsidiaries also narrowed its operating loss, from 2021’s Bt11.4b to this year’s Bt4.5b. Revenue, at Bt32.7b, was over three times higher year on year, outpacing a 72% increase in costs to Bt37.1b. In its outlook, the carrier says it will continue to increase frequencies across its international network, as Thailand moves to fully reopen the country on 1 July. On its ongoing rehabilitation plans, the carrier states: “[Thai Airways] has revised its business plan and increased revenue resulting in…better cash flow levels in operations that have changed significantly. Therefore, the requested level for new loans has decreased from the original.” <br/>