Bangkok--12 Aug--Thai Airways
Thai Airways International Public Company Limited (THAI) today announces the Company’s financial statements and its subsidiaries for the 2nd quarter of 2011. The Company’s total revenues amounted to THB 45,559 million with operating loss of THB 5,959 million and also incurring a THB 2,265 million loss from foreign currency exchange, resulting in a net loss of THB 7,874 million.
Mr. Piyasvasti Amranand, THAI President, announced the company’s operating results for the second quarter of fiscal year 2011 (April 1 - June 30, 2011), which is the Company’s seasonally slow period where passenger traffic to and from Thailand is normally weak. As a result, the average cabin factor was 66.4% and due to a rapid increase in jet fuel price by an average of 46.3%, from USD 95 in the same period last year to USD 139 this year. Consequently, the cost of fuel increased from the same period last year by THB 5,569 million. Although the Company received compensation from fuel hedging by THB 430 million, the intense competition from all market areas, especially, increased competition from low-cost airlines, there was pressure on the Company’s ability to raise ticket prices. In addition, the tragic earthquake in Japan, which is a major market for THAI, also resulted in the decrease in the number of passengers travelling to and from Thailand and adversely impacting freight volume, cargo and mail.
However, the stable political situation during the second quarter resulted in a 13.2 percent increase in the number of passengers compared to the same period last year. Revenue Passenger Kilometer (RPK) was 9.8% higher than the same period in 2010. Cabin Factor averaged 66.4%, which was 64.6% posted the same period the previous year, while the average freight load factor decreased by 0.8% from the same period last year.
THAI’s operating results for the first half of fiscal year 2011 (January 1 - June 30, 2011) was a operating loss of THB 1,847 million while foreign currency exchange loss totalled THB5,623 million. This resulted in the company’s total net loss of THB 7,256 million or a loss of THB 3.32 per share as compared to the previous year‘s net profit of THB 11,973 million, or THB 7.05 per share. In addition, the company’s fuel cost was THB 8,788 million higher than the same period last year. EBITDA was THB 9,775 million which was THB 4,433 million lower than last year.
Operating results for July 2011 saw the cabin factor and RPK improve dramatically with RPK reaching 5,234 million which was an increase of 7.6% compared to the same period last year. Cabin factorwas 25% higher in July 2011 compared to June 2011 hitting 77.3%, the highest level for the same month over the past four years. The main routes with increased cabin factor are as follows:
- Regional Route, the average cabin factor was 74.4%, which was 6.8% higher than June 2011.
- European Route, the average cabin factor was 79.8%, which was 31.7% higher than last month (June).
- Northern Route (such as China, Korea, Japan), the average cabin factor was 77.3%, which was 8.1% higher than last month (June).
- Indochina Route (such as Vietnam, Hanoi, Phnom Penh), the average cabin factor was 77.5%, which was 17.05% higher than last month (June).
- Middle East Route the average cabin factor was 83.9%, which was 13% higher than last month (June).
- Australia and New Zealand the average cabin factor was 79.2%, which was 18.9% higher than last month (June).
- African Route, the average cabin factor was 81.3%, which was 35.6% higher than last month (June).
- Domestic Route, the average cabin factor was 78.8%, which was 25.1% higher than last month (June).
As of June 30, 2011, total assets for Thai Airways International Public Company Limited and its subsidiaries was THB 283,028 million, a decrease of THB 13,530 million from December 31, 2010. The Company’s total liabilities amounted to THB 216,662 million was a decrease of THB 3,514 million. The Net Interest Bearing Debt was THB 120,254 million and shareholders’ equity was THB 66,366 million which resulted in the Net Interest Bearing Debt to Equity ratio of 1.81 times. The company’s liquidity for the second quarter and first half of 2011 was satisfactory, with the company’s cash and revolving credit line at 20.6% of total revenue.