Thai Airways reports first-quarter 2023 earnings despite ailing financial situation

Thai Airways unveiled its financial and operating results for the first quarter of 2023. Despite struggling financially, Thailand’s national airline posted a profit between January and March, mainly thanks to the lifting of mobility restrictions in some of its major markets.

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Thai Airways posts January-March profit

Chaim Eamsiri, CEO of Thai Airways, praised the results and said the airline expects to carry about 9 million passengers in the first quarter of the year. He also said they expect to continue to make profits in the coming months.

In the last few hours, as part of the strategic restructuring plan proposed by its management, the company decided to dissolve its subsidiary Thai Smile Airways, which has been making losses since its creation more than a decade ago. In doing so, it will consolidate the fleet of both under a single name with the aim of reducing operating costs.

Once regulatory authorities approve the move, all operations, as well as flight and route planning, will be under the control of Thai Airways, which will operate under its operator’s certificate. According to Eamsiri, the merger will improve the company’s asset management and operational efficiency.

Since the start of the process, the company has already sold 19 aircraft: ten Boeing 747 and nine Airbus A340. In addition, it will soon start selling its six Airbus A380. Its long-haul fleet currently consists of Boeing 777-300ER, 787 Dreamliner and Airbus A350-900 aircraft. In the second quarter, the airline should take delivery of two of the eleven A350 ordered as part of the new aircraft acquisition plan.

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See also: Restructuring Thai Airways: Merging with Thai Smile Airways to Boost Competitiveness

Thai Airways’ key financial and operational results for the first quarter of 2023

• Revenues of almost 1.2 billion dollars. The figure represents a remarkable 271% increase over the same period last year. This is mainly explained by the re-establishment of air connections in East Asia. Flights to South Korea and Japan, for example, are among the most profitable due to the popularity of these destinations within Thai tourists.
• Operating profit, before finance costs and excluding non-recurring transactions, reached 386 million dollars. This was a significant improvement from the loss of 93 million in the previous year.
• Total expenses reached 842 million dollars between January and March. In the first quarter of 2022, the company had reported expenses of 424 million.
• Fuel spending increased 9.7% from the same period last year, the company said.
• As of 31 March 2023, Thai Airways and its subsidiary had a total of 65 aircraft in operation, more than a hundred fewer than before the start of the pandemic.