THAI's loss doubles in Q3

THAI's loss doubles in Q3

The management of Thai Airways International on Thursday night announces its doubled loss in the third quarter due to several factors. (File photo)
The management of Thai Airways International on Thursday night announces its doubled loss in the third quarter due to several factors. (File photo)

Thai Airways International (THAI) reported an operating loss of 3.69 billion baht in the third quarter, up 103% year-on-year from 2017.

THAI president Sumeth Damrongchaitham, who has pledged to cut and then eliminate the airline's losses, blamed the bleak July-to-September financial results "partly" on natural disasters, decreasing numbers of Chinese tourists and rising oil prices.

Mr Sumeth said the loss came despite a 2.2% rise in total revenue of THAI and its subsidiaries - 47.95 billion baht between July 1 and Sept 30, including income from passengers, excess baggage, freight and mail.

But operating costs hit 3.69 billion baht, up 1.87 billion baht compared with the same three-month period last year.

Passenger loads dropped slightly to 77.5%, compared with 78.2% in the corresponding period of 2017.

Mr Sumeth said the third quarter was normally the low season. At the same time, the national airline had to cancel many flights due to Typhoon Jebi that hit Japan, an earthquake in Hokkaido and Typhoon Mangkhut that struck Hong Kong. The decreasing number of Chinese tourists was also a shock to the bottom line.

He said that total expenses in the third quarter rose by 11.3% year-on-year, mostly due to rising fuel costs. But the quarterly report said non-fuel operating expenses increased by 5.5% year on year, a factor he said was "due mainly" to higher maintenance and overhaul costs, along with rising aircraft and spare part leases.

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Vocabulary

  • bottom line (noun): how much money a company makes; the last line in a financial report that shows how much the company made - ผลคะแนน, ผลการแข่งขัน, ผลสรุป
  • corresponding (adj): matching or connected with something that you have just mentioned - ที่สอดคล้อง
  • eliminate: to get rid of completely - กำจัดหรือขจัดให้หมดไป
  • lease: a legal agreement in which you pay money in order to use a building, piece of land, vehicle, etc. for a period of time - สัญญาเช่า
  • natural disaster: an unexpected natural event, such as a very bad storm or flood that kills a lot of people or causes a lot of damage - ความหายนะธรรมชาติทาง, ภัยพิบัติธรรมชาติทาง
  • overhaul (noun): an examination of a machine or system, including doing repairs on it or making changes to it - การปรับปรุงใหม่
  • pledge: to make a serious promise to do something - สัญญา
  • shock: a strong feeling of surprise as a result of something happening, especially something unpleasant; the event that causes this feeling - ช็อค, ความสะดุ้ง, อาการช็อค
  • subsidiary: (of a business company) owned or controlled by another company - บริษัทในเครือ

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