Bangkok--26 Feb--Thai Airways
Today (26 February, 2010) at the Head Office of Thai Airways International Public Company Limited, the Board of Directors Meeting was chaired by Mr. Ampon Kittiampon, THAI’s Chairman of the Board of Directors, reaching the following resolutions :
1. THAI Announces Financial Results for Fiscal Year 2009
THAI’s Board of Directors approved the financial results for fiscal year 2009 (1 January - 31 December 2009), and noting that the Company is still affected by the various crises including the ongoing global recession and the lingering Influenza A (H1N1) pandemic, caused a dramatic downturn in demand for international air travel during the second quarter. The Thai political unrest also had negative impact on the Company’s operations during the first nine months. The Company reduced flights on regional and intercontinental routes, and adjusted flight capacity to suit market conditions. However, the Company did launch direct service between Bangkok and Oslo, Norway to meet current market demands, with further expansion opportunity.
During the fourth quarter, the world economy began to improve as forecast coinciding with the time of peak travel demand. The Company gradually increased its flight operations as planned combined with the implementation of measures to increase quality revenue, employing strict cost control measures and investments under the Turnaround Plan, the Company was able to achieve established targets and to regain profitability in the fiscal year 2009.
In the fiscal year 2009, the Company’s total operating revenue amounted to THB 163,875 million, a decrease of THB 38,731 million or 19.1% from the same period last year. The decrease was mainly due to intense competition on fares, a decline in load factor as well as lowered fuel surcharge following the reduction in the average fuel costs. Operating expense totalled THB 155,768 million or a 31.1 percent
decrease from the same period last year, due to the decline in the average fuel costs from last year and because of lower production and transportation volume. Cost reduction, cost control and cost management according to the Turnaround Plan and foreign exchange gain, in contrary to the foreign exchange loss of last year, enabled the Company to earn a net profit of THB 7,344 million or a profit of THB 4.32 per share in 2009. In comparison to last year, the Company had a net loss of THB 21,379
million or a loss of THB 12.58 per share. EBITDA in 2009 was THB 30,297 million, THB 16,678 million higher than last year.
The holiday period in January 2010 led to higher passenger traffic and a record cabin factor of 82 percent, an increase of 6.8 percent from the same period last year.
2. Distribution of Dividend
THAI’s Board of Directors also approved the proposal to submit for approval at the 1st Annual General Shareholders’ Meeting 2010, the distribution of dividend for fiscal year 2009 (1 January - 31 December 2009) in the amount of 0.25 baht per share. The dividend payment is scheduled for Thursday, 27 May 2010.