Competition from low-cost airlines, Middle East-based airlines and recent terror attacks in Europe are among key factors behind Thai Airways International Plc's (THAI) second-quarter net loss of 2.91 billion baht.
The national carrier's performance fell back into the red after the company recorded net profit of 5.99 billion baht in the first quarter of this year.
The company has posted a net loss for three consecutive years since 2013.
However, second-quarter losses this year were a lot lower than the 12.75-billion-baht loss in the same period last year.
As a result, THAI still registered a 3.08-billion-baht profit in the first half of this year, compared to 8.21 billion baht in losses in the same period last year.
THAI president Charamporn Jotikasthira said the drop was due to the fact that the second quarter is low season.
Charamporn: Blames low season, terrorism in Europe
He also noted fierce competition in the Asia Pacific from budget airlines and Middle East carriers as well as terrorism in Europe, which is the airline's key market.
Referring to the likely impact of the bombings and arson attacks in seven Thai provinces last week, he said the short-term effect may not be severe, though further assessment on the effect on passenger numbers and tourism is needed.
According to Mr Charamporn, the second quarter this year saw a 0.2% drop in average cabin factor -- a measurement of the capacity utilisation of an airline -- to 69% compared to figures from the same period last year.
Second-quarter losses were lower this year due to a 3.18-billion-baht, or 21.3%, reduction in fuel expenses, he said.
THAI aims to bolster sales through its alliances which offer flights to destinations where the national carrier does not operate, Mr Charamporn said.
Negotiations are under way with 10 airlines flying to Europe to increase ticket sales to that market, he added.
"We have passed the worst and most exhausting point of this year," Mr Charamporn said, adding the airline is in a two-year rehabilitation process to stem losses and the situation is expected to improve.