Home Business & Finance Thai Airways announces first and second quarter results 2020

Thai Airways announces first and second quarter results 2020

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BANGKOK: Thai Airways International Public Company Limited (THAI) and its subsidiaries announced its first and second quarter results for 2020, whereby the total revenue for the first quarter was THB 38,001 million that was THB 11,790 million or23.7% less than the same period last year and the second quarter was THB 2,492 million that was THB 40,017 million or 94.1% less than the same period last year.
 
Mr. Chansin Treenuchagron, THAI Acting President, said that as a result of the Covid-19 outbreak, the governments of countries worldwide issued preventive measures and issued travel restrictions, resulting in a grave reduction of demand for international and domestic travel.  Therefore, THAI reduced its flight frequencies to reflect passenger travel demand.  In addition, several financial and cash flow management measures were implemented. In the first quarter 2020, THAI and its subsidiaries earned a total revenue of THB 38,001 million that was THB 11,790 million or 23.7% less than the same period last year, due to reduced passenger travel and cargo carried.  Total expenses amounted to THB 42,609 million that was THB 8,010 million (15.8%) less than last year. THAI and its subsidiaries incurred a net loss of THB 22,676 million, compared to a profit of THB 456 million during the same period last year.
 
In the second quarter 2020, the global aviation industry was highly affected by the Covid-19 outbreak and the Civil Aviation Authority of Thailand (CAAT) temporarily prohibited international flight arrivals into Thailand, whereby THAI had to temporarily suspend all flight operations and continued to implement strict preventive measures that were initiated during the last quarter.  In order for THAI to maintain its financial liquidity and maximize its cash flow, THAI operated charter and cargo flights as well as special flights to repatriate Thai people.  Production traffic (ASK) reduced by 96.5%, passenger traffic (RPK) decreased by 99.5%, with an average cabin factor that was 10.3% less that than same period last year at an average of 74.7%, with a total of 0.08 million passengers that was 98.6% less than the same period last year.  The average freight load factor was 99.9%, which was 52.8% higher than last year. 

As the Company temporarily closed, THAI and its subsidiaries lacked revenue from airline business, but earned alternative revenue from cargo operations, special flights, customer airline services, and THAI Catering consumable products that amounted to THB 2,492 million, which was THB 40,017 million or 94.1% less than the same period last year.  During the second quarter, THAI was better able to control expenses as THAI’s Board of Directors, Management, and employees voluntarily reduced their salaries from April to December 2020. The Company’s total expenses were THB 16,193 million, which was THB 33,428 million (67.4%) less than the same period last year.  As a result, THAI and its subsidiaries incurred a net loss of THB 5,353 million, which was 1,525 million (22.2%) less than last year.

BIZ TODAY MONITOR

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