Thai Airways

THAI Announces Operating Results for 3rd Quarter 2011

Press Release   •   Nov 10, 2011 14:05 SGT

Thai Airways International Public Company Limited (THAI) announced the Company’s financial statements and its subsidiaries for the 3rd quarter of 2011. The Company’s total revenues amounted to THB 49,961 million which was an increase of THB 4,547 and reported net profit of THB 2,447 million baht.

 Mr. Piyasvasti Amranand, THAI President, announced the Company’s operating results for the third quarter of fiscal year 2011, which was impacted by consistently high fuel price in the global market that increased by 44.5 percent over the same period last year. Due to fierce competition in the commercial airline industry, especially on European routes, THAI was not able to sufficiently adjust fuel surcharge to cover the rapid rise in fuel cost. In the third quarter, passenger traffic increased by 15.3 percent from the second quarter 2011, which was also higher than third quarter of last year by 4.3%. Cargo and Commercial Mail has been effected by Japan’s earthquake and tsunami since March 2011 and financial crises in Europe and the United States of America, which resulted in decreased freight demand.

In the third quarter 2011, the Company’s total revenues amounted to THB 49,961 million which was an increase of THB 4,547 million or 10.0% over the same period last year. Total expenses exclude gains on foreign exchange but include share of profits on investments by the equity method and finance costs total THB 49,668 million which was THB 6,945 million or 16.3 percent higher than the same quarter last year, due to increased cost of jet fuel prices that was 44.5 percent higher than the same period last year. In this quarter, THAI posted gains on foreign currency exchange in the amount of THB 2,299 million baht and the Company reported a net profit of THB 2,447 million or THB 1.12 per share. When compared to the same period in 2010 that had a loss of THB 15 million or THB 0.01 per share. EBITDAR was THB 6,719 million, which was THB 2,972 million or 30.7% less than the same period last year.

Operating results for the nine-month period of fiscal year 2011 (1 January – 30 September 2011), the Company reported a net loss of THB 4,809 million or THB 2.20 per share due to a THB 3,325 million loss on foreign currency exchange and increased cost of jet fuel by 41.5 percent when compared to the same period last year where the Company posted a net profit of THB 11,958 million or THB 6.99 per share. Of the profits earned last year THB 7,317 million was from gains on foreign currency exchange.

 As of 30 September 2011, Thai Airways International Public Company Limited and subsidiaries have total assets totaling THB 277,044 million, a decrease by THB 19,514 million with total liabilities of THB 208,225 million which was THB 11,951 million lower. Total shareholders’ equity amounted to THB 68,819 million, which decreased by THB 7,563 million. As of October 2011, the Company’s liquidity remains strong and the Company’s cash and revolving credit lines was 18 percent of total revenue.