Thai Airways loss doubles in Q2

Thai Airways International’s second-quarter loss more than doubled as the global economic slowdown, fierce competition and a strengthened baht took their toll on revenue.

The national carrier reported a net loss of 6.88 billion baht in the second quarter, compared with 3.1 billion a year earlier, according to a filing to the Stock Exchange of Thailand late Friday after the market closed. Revenue fell 10% year-on-year to 42.5 billion baht. Total expenses dropped 0.8% to 49.6 billion baht on lower fuel prices.

For the first six months of the year, the airline said its net loss was 6.44 billion baht (2.95 baht a share), compared with a loss of 381.6 million (0.17 baht a share) in the first half of 2018.

THAI has faced mounting pressure on its revenue as it struggles to operate with ageing aircraft, declining tourist arrivals and a stronger currency. The baht’s 8% appreciation against the US dollar in the past year is the strongest in a basket of emerging-market currencies tracked by Bloomberg.

“The baht appreciation greatly affected the Thai tourism situation,” the company said.

Transport Minister Saksayam Chidchob said last week that he supported Thai Airways’ plan to buy new aircraft to improve its services. In the current quarter, the company had total of 103 active aircraft, two fewer than a year earlier after it decommissioned a pair of Boeing B737-400s.

THAI shares closed on Friday on the SET at 9.45 baht, down 25 satang, in trade worth 34.3 million baht.