THAI announces operating results 2015


Thai Airways International Public Company Limited (THAI) and its subsidiaries announced an operating loss for 2015 from airline business, at the amount of THB 1,304 million, which is better than last year’s loss of THB 23,019 million. THAI has a one-time cost that occurred from the Transformation Plan and impairment of aircraft and assets, the total amount of THB 16,324 million and gain on foreign currency exchange, the amount of THB 3,512 million, respectively. Consequently, the total net loss for 2015 was THB 13,047 million. The Transformation Plan has partially helped to outstandingly push THB 570 million of operating profit from airline business, much improved when compared to loss of THB 22,439 million last year.

Mr. Charamporn Jotikasthira, President of Thai Airways International Public Company Limited, said since the first quarter of 2015 THAI implemented the Transformation Plan approved by the State Enterprise Policy Committee on January 26, 2015. The Transformation Plan in the first phase aimed to stop the bleeding by reducing flight frequency and/or discontinuing the non-profitable routes, cut unnecessary cost items, and generated revenue by adjusting sales strategies, increasing ancillary revenues and enhancing product and services competitiveness. Moreover, THAI launched the Mutual Separation Plan (MSP) for general employees and Golden Handshake scheme for flight attendants to manage manpower affected by the reduction of flights and routes in order to improve the personnel and cost structure and reduce overall costs for the long-term. A total of 1,401 staff joined the program, with 1,277 staff effective in 2015.

THAI received new 8 aircraft and decommissioned 15 aircraft following the fleet strategy that reduced the fleet to 95 aircraft, effective December 31, 2015, which decreased from 102 aircraft last year. Nevertheless, the flight frequency adjustment and change of aircraft to match the passenger demand resulted in more effective aircraft utilization, which caused the increase of passenger production (ASK) by 0.6% while passenger traffic (RPK) increased by 6.5%. Cabin factor was 72.9% higher than last year’s 68.9%. The numbers of passengers carried were 21.25 million passengers, an increase of 11.3% from last year.

In accordance to the strategies and Transformation Plan that were closely monitored by the Management and Board of Directors, THAI and its subsidiaries’ financial performance for 2015 showed an operating loss from airline business of THB 1,304 million, a THB 21,715 million (94.3%) improvement from the same period last year due mainly to decreased total expenses by 11.2% primarily from decrease of fuel and non-fuel expense resulting from rigid cost controlling and management program. Total revenue declined 1.2% from last year mainly from 1.5% reduction in passenger revenue and 21.0% reduction in cargo revenue. The main reasons were from reduction of fuel surcharge, the strengthened value in Baht compared to major currencies which made lower revenue when translated to the Baht term, and the high competition.

In 2015, THAI had THB 3,512 million gain on foreign currency exchange, THB 4,167 million one-time cost occurred from the Transformation Plan and THB 12,157 million in aircraft and asset impairments. Including all these items, the total net loss for 2015 was THB 13,047 million. Loss attributable to owners of the parent amounted to THB 13,068 million. Loss per share was THB 5.99 which was less loss by THB 1.16 (16.2%).

As of December 31, 2015, total assets were THB 302,471 million, a decrease of THB 4,796 million (1.6%) from December 31, 2014, mainly due to impairment loss of aircraft. Total liabilities as of December 31, 2015 totaled THB 269,545 million, which was an increase of THB 3,574 million (1.3%) as of December 31, 2014. Total shareholders’ equity amounted to THB 32,926 million, which was a decrease of THB 8,370 million (20.3%) as compared to December 31, 2014.