Thai Airways profits up nearly 50% for Q1

[webfact]

Thai Airways profits up nearly 50% for Q1

By The Thaiger & The Nation

 

  

Thai Airways International and its subsidiaries have been able to notch up an operating profit of 3,836 million baht for the first quarter of 2018. This represents a 49.4% improvement over the same period last year, despite rising fuel costs.

 

That cashes out as a net profit of 2,737 million baht, still 432 million baht (13.6%) short of last year’s Q1 performance. Thai Airways claims this is mainly due to rising fuel costs.

 

The airline is attributing its better performance to revenue increases from fares and excess baggage, freight and mail plus revenue from other activities as well as foreign exchange gains.

 

Full story: https://thethaiger.com/news/Thai-Airways-profits-up

 

-- © Copyright The Thaiger 2018-05-21

[zaphod reborn]

There's been a lot of cost-cutting and their fleet of airplanes is way too old.  However, are they going to give any credit to the token ex-pat Sales VP they hired to turnaround their performance?  https://loyaltylobby.com/2016/01/22/thai-airways-appointment-of-foreign-executive-as-sales-vp-causes-local-uproar/

 

Of course not, because this is Thailand.  

[geriatrickid]

Considering the fact that  almost all of the international airlines have been reporting bumper profits,  the modest profit posted by TG is nothing special. It's called increased yields and more efficient  aircraft. The addition of the new  AB350s and B787 have made a significant difference. 

 

If one wishes to sing praises, then please have a kind thought for 

former TG president Piyasvasti Amranand, currently the chairman of PTT. He joined TG in 2009 to turn it around and he did. He was the one  who was behind the creation of Thai Smile which slashed domestic costs, and it was during his administration that the decision was made to order AB350s and B787. These are the aircraft which have provided the equipment best suited to the TG routes. This guy deserves praise and recognition for what he did. His strategy  is now paying dividends.

[petermik]

Who has done the maths..........

[Bob12345]

Their morning (10am) flight from phuket to bangkok last Saturday...

[RichardColeman]

Must be all those fatties paying the fatty tax !

[kevvy]

Qantas has reported a record $976 million profit for the December half, beating its own forecasts, and announced a $500 million return for its shareholders.Feb 22, 2018

[wump]

Who would've thought finally offering competitive prices increases profit? What kind of sorcery is this?

But seriously: By all means fly Thai, but stay far far away from ThaiSmile. Freaking less leg room than Airasia. If you are above 185 cms tall you cannot sit with you legs straight. Ridiculous.

[realenglish1]

I would not give them any credit for the profit A lot of it has to do with exchange rates and increased fair Notice then did not say increased riders Why would I go in Thai airways with older equipment when I can pick another airline at 20 to 30% less with newer aircraft.

They are still not tackling the route problem They are too expensive for less service

 

This is a dying airline business model.

[observer90210]

No worry !!...with Trump's latest global scam on sanctions against Iran (just to hike the oil prices for the trader pals),  air fare tickets will soar.

 

Perhaps some carriers will be tempted to hike the prices not only to cover fuel rise, but to add a bit more profit obviously,

Edited May 21, 2018 by observer90210

[Hummin]

1 minute ago, observer90210 said:

No worry !!...with Trump's latest global scam on sanctions against Iran (just to hike the oil prices for the trader pals),  air fare tickets will soar.

 

Perhaps some carriers will be tempted to hike the prices not only to cover fuel rise, but to add a bit more profit obviously,

I can live with higher airticket prices as long the oil prises goes up and up and up. Oil is to cheap, why to cheap

[Chelseafan]

Yes this is a jump on Q1 2017 but don't forget Q1 Profits in 2016 were 6,011m baht.

 

Nothing to write home about....

 

[observer90210]

6 minutes ago, Hummin said:

I can live with higher airticket prices as long the oil prises goes up and up and up. Oil is to cheap, why to cheap

Obviously if one takes a plane every decade, the hike in air fares won't have much impact.

 

But tourism will suffer and the correlated cash pumping will drop.

[Hummin]

14 minutes ago, observer90210 said:

Obviously if one takes a plane every decade, the hike in air fares won't have much impact.

 

But tourism will suffer and the correlated cash pumping will drop.

Hm, Im not so worried about the tourist drop to be honest with you. 

[Srikcir]

11 hours ago, webfact said:

operating profit of 3,836 million baht for the first quarter of 2018. This represents a 49.4% improvement over the same period last year, despite rising fuel costs.

 

That cashes out as a net profit of 2,737 million baht, still 432 million baht (13.6%) short of last year’s Q1 performance. Thai Airways claims this is mainly due to rising fuel costs

So the 2018Q1 "operating profit" is not the same as the "net profit" because the former excludes fuel costs. Which if included, the 2018Q1 net profit is less than 2017Q1. So while THAI is touting its 49.4% improvement 2018Q1 over 2017Q1, the shareholders are seeing less value because the net profit for 2018Q1 is less than in 2017Q1.

https://www.google.com/search?q=thai+airways+stock+price&ie=utf-8&oe=utf-8&client=firefox-b

How does that qualify as an improvement?

 

[Skeptic7]

I'm in and out on TG frequently to Narita on the A-350 Jumbo. Previously it had been only about half full, but from the last quarter of last year through just the other night...nearly filled to capacity in economy class. Much  preferred it before...could kick back in an entire row of empty seats!  

[AsiaHand]

On 5/21/2018 at 9:29 AM, zaphod reborn said:

There's been a lot of cost-cutting and their fleet of airplanes is way too old.  However, are they going to give any credit to the token ex-pat Sales VP they hired to turnaround their performance?  https://loyaltylobby.com/2016/01/22/thai-airways-appointment-of-foreign-executive-as-sales-vp-causes-local-uproar/

 

Of course not, because this is Thailand.  

Ah Yes,When the maintenance goes down ,the  profits go up.