Bangkok--13 May--Thai Airways
Thai Airways International Public Company Limited (THAI) today announces its 1st quarter operating results for 2011. Profits before foreign currency exchange and tax totaled 4.11 billion baht, while the loss from foreign currency exchange was 3.36 billion baht, resulting in a comprehensive income of 618 million baht.
Mr. Piyasvasti Amranand, THAI President, said the 1st quarter (1 January — 31 March) operating results for 2011 fiscal year was lower compared to the same quarter in 2010 due to a number of unfavorable factors occurring during the period. Although the aviation industry was benefiting from world economic recovery during the quarter, the rapid rise of jet fuel price and the devastating Japan earthquake and tsunami in early March culminated in a drastic drop in passenger volume in the region. With THAI also facing difficulty in increasing passenger fuel surcharge to offset the rising fuel price, while encountering fierce competition among the airlines, the operating profit was lower compared to the same period last year.
In the first quarter of 2011, the total revenue amounted to 51.85 billion baht, which was an increase of 2.05 billion baht or 4.1% over the same period last year. The revenue from sales or services increased by 2.11 billion baht, or 4.3%. Total expenses, excluding gains (losses) of foreign currency exchange, but including share of profits (losses) from investments by the equity method and finance costs, amounted to 47.74 billion baht which was 3.33 billion baht, or 7.5% higher than the same quarter last year. The major factor causing a dramatic increase in cost was the rapid rise in average jet fuel price, which was 33.5% higher than the same period in 2010.
Furthermore, in the first quarter of 2011, the company recorded losses on foreign currency exchange in the amount of 3.36 billion baht compared to the recorded gains on foreign currency exchange of 5.70 billion baht in the same quarter last year. Consequently, THAI earned profits before income tax in the amount of 754 million baht, which was a decline of 10.34 billion baht compared to the same period last year. However, excluding the gains (losses) of foreign currency exchange, profits before foreign currency exchange and tax amounted to 4.11 billion baht, a decrease of 1.28 billion baht or 23.8 % year-on-year.
The company's comprehensive income was 618 million or 0.28 baht per share. EBITDAR was 11.19 billion baht, which was 559 million baht, or 4.8%, less than last year.
As of 31 March 2011, the company’s total assets were 291.55 billion baht, a decrease of 5.0 billion baht from the end of December 2010. Total liabilities totaled 214.54 billion baht, which was a decrease of 5.64 billion baht. Total shareholders’ equity amounted to 77.02 billion baht, which was an increase of 633 million baht.