THAI reports B28.1bn net profit

THAI reports B28.1bn net profit

Thai Airways International (THAI) reported a jump in revenue and logged a net profit of 28.1 billion baht last year due to a recovery in the aviation and tourism sectors and a significant increase in passenger travel demand.

Piyasvasti Amranand, chairman of THAI's committee overseeing the airline's rehabilitation, said the total revenue, excluding one-time transactions, amounted to 161 billion baht last year, mainly due to a 79.3% jump in passenger revenue. The airline's cash flow exceeded 67 billion baht, so it had the liquidity to continue its business operations and service debts stipulated in its rehabilitation plan, said Mr Piyasvasti.

"THAI's total debt is 120 billion baht, with the first repayment of 10 billion baht to be made this year. We must repay it in 12 instalments. Considering THAI's financial performance, the airline can service its debts," he said.

Mr Piyasvasti also said the airline is expected to file for the resumption of trading of THAI shares on the Stock Exchange of Thailand within the next year, noting that earnings before interest, tax, depreciation, and amortisation after deducting aircraft lease payments are higher than the projection in the rehabilitation plan.

The SET suspended the trading of THAI shares in May 2021 due to the risk of de-listing because of negative equity and signs of non-compliance. The company has until 2025 to resolve the issues.

THAI recently confirmed it had placed an order with Boeing for at least 45 aircraft, which would be added to the fleet between 2027 and 2033.

"The fleet will not be paid by the taxpayers' money. THAI didn't receive a single baht from the government during the Covid-19 pandemic," he said.

Chai Eamsiri, THAI's chief executive officer, said the aircraft acquisition programme is a pure business decision to support the airline's business while noting that the company has yet to decide if it opts to pay with cash.

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