Thai Airways Reports Loss for Q2 2011

Thai Airways International and its subsidiaries’ total revenues amounted to THB 45,559 million with an operating loss of THB 5,959 million in Q2 2011 (1 April - 30 June 2011).

The company also incurred a THB 2,265 million loss from foreign currency exchange, resulting in a net loss of THB 7,874 million.

Thai Airways said the loss was caused primarily because of high fuel prices, intense competition from low cost and other airlines, as well as the reduction in travellers following the earthquake in Japan.

During the period, the average cabin factor was 66.4% However, as the political situation was much more stable than compared to the troubles seen the year before, the number of passengers increased 13.2% y-o-y. Revenue Passenger Kilometer (RPK) was 9.8% higher than the same period in 2010 and the average freight load factor decreased by 0.8% from the same period last year.

THAI’s operating results for the first half of fiscal year 2011 (1 January - 30 June 2011) was an operating loss of THB 1,847 million while foreign currency exchange loss totalled THB5,623 million. This resulted in the company’s total net loss of THB 7,256 million or a loss of THB 3.32 per share as compared to the previous year‘s net profit of THB 11,973 million, or THB 7.05 per share. In addition, the company’s fuel cost was THB 8,788 million higher than the same period last year. EBITDA was THB 9,775 million which was THB 4,433 million lower than last year.

Operating results for July 2011 saw the cabin factor and RPK improve dramatically with RPK reaching 5,234 million which was an increase of 7.6% compared to the same period last year. Cabin factor was 25% higher in July 2011 compared to June 2011 hitting 77.3%, the highest level for the same month over the past four years. The main routes with increased cabin factor are as follows:

• Regional Routes: The average cabin factor was 74.4%, which was 6.8% higher than June 2011.

• European Routes: The average cabin factor was 79.8%, which was 31.7% higher than last month (June).

• Northern Routes (such as China, Korea, Japan): The average cabin factor was 77.3%, which was 8.1% higher than last month (June).

• Indochina Routes (such as Vietnam, Hanoi, Phnom Penh): the average cabin factor was 77.5%, which was 17.05% higher than last month (June).

• Middle East Routes: The average cabin factor was 83.9%, which was 13% higher than last month (June).

• Australia and New Zealand: The average cabin factor was 79.2%, which was 18.9% higher than last month (June).

• African Routes: The average cabin factor was 81.3%, which was 35.6% higher than last month (June).

• Domestic Routes: The average cabin factor was 78.8%, which was 25.1% higher than last month (June).

As of 30 June 2011, total assets for Thai Airways International Public Company Limited and its subsidiaries was THB 283,028 million, a decrease of THB 13,530 million from 31 December 2010. The company’s total liabilities amounted to THB 216,662 million representing a decrease of THB 3,514 million. The Net Interest Bearing Debt was THB 120,254 million and shareholders’ equity was THB 66,366 million which resulted in the Net Interest Bearing Debt to Equity ratio of 1.81 times. The company’s liquidity for the second quarter and first half of 2011 was satisfactory, with the company’s cash and revolving credit line at 20.6% of total revenue.

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