Bangkok: Thai Airways International, the nation's largest carrier, reported third-quarter profit of 136.4 million baht (Dh16.7 million), rebounding from a loss a year earlier as revenue increased.
Net income was 0.08 baht per share, compared with a net loss of 4.3 billion baht, or 2.37 baht, a year earlier, the company said yesterday. Profit was lower than the 168 million baht median estimate of eight analysts surveyed by Bloomberg.
Modernise fleets
Thai Air, which competes with Singapore Airlines and regional carriers to carry travellers to beach resorts including Phuket, has sold shares and taken loans to modernise its fleet and expand routes. The airline agreed in June to acquire 15 aircraft from Boeing Co and Airbus to replace ageing planes.
"The main driver squeezing net profit is a foreign- exchange loss of about 2.7 billion baht in the quarter," said Daowadee Teera-apisakkul, an analyst at Kim Eng Securities (Thailand). Higher fuel and inventory costs increased the company's operating expenses, limiting profit growth compared with the previous quarter, she said.
The company reported a 2.8 billion foreign-exchange loss in the period, little changed from a year earlier. It reported net income of 1.55 billion baht in the second quarter, when it had a 4.4 billion baht exchange gain. Total revenue in the third quarter rose 16 per cent to 45.4 billion baht.
The company's shares slipped 5.9 per cent to 44.25 baht as of 2.31pm in Bangkok. The stock has surged 137 per cent this year, compared with a 43 per cent gain in Bloomberg's Asia- Pacific Travel Index and a 36 per cent advance for Thailand's benchmark SET Index.
Travel demand returns
The third quarter "was the company's seasonal slow period," Thai Air said in a statement. "Nevertheless, the global economic recovery and the relative calm in the domestic political situation enabled air travel and freight shipment to pick up from previous quarter."
The company's average cabin load factor rose to 74.7 per cent in the third quarter, from 73.9 per cent a year earlier. Its freight load factor rose to 61.3 per cent.
