Airlines see steep plunge in Q2 as Covid-19 ravages business

By The Nation

 

 

The performance of airlines listed in the Stock Exchange of Thailand crashed due to travel restrictions imposed to prevent the spread of Covid-19 as well as intensified competition in the second quarter, experts said.

 

Chansin Treenuchagron, Thai Airways International (THAI) acting president, explained that in the second quarter of this year, the company lost Bt5.339 billion, down from Bt6.883 billion in the same period of the previous year.

 

"Revenue totalled Bt2.492 billion, down 94.1 per cent from Bt40.017 billion in the same period of the previous year, while expenses amounted to Bt16.193 billion, down 67.4 per cent due to temporary flight suspension and decline in personnel expenses as a result of cost reduction measures," he said.

 

"In the first six months this year, the company lost Bt28.016 billion, up 355 per cent from Bt6.438 billion in the same period of the previous year."

 

He said as of June 30, THAI had circulating liabilities higher than circulating assets of Bt262.244 billion, while the capital deficit was Bt18.228 billion, adding that the airline has been suffering losses since 2013.

 

"Therefore, the company is currently preparing a rehabilitation plan to propose to debtors," he said.

 

He said in the second quarter of this year, the Covid-19 pandemic had severely impacted the global aviation industry, while passengers temporarily cancelled flights.

 

"The company organised only cargo and charter flights during the second quarter, causing the volume of available seat kilometres and passenger transport to drop by 96.5 per cent and 99.5 per cent, respectively," he said.

 

"The passenger ratio was 10.3 per cent, down from 74.7 per cent in the same period of the previous year, while the number of passengers was 0.08 million people, down 98.6 per cent year on year."

 

Nok Air's net loss in the first quarter this year was Bt2.330 billion, up from Bt304.15 million in the same period of the previous year.

 

As of March 31 this year, the company and its subsidiaries' assets were worth Bt31.148 billion, while liabilities totalled Bt36.286 billion, up 94.68 per cent from December 31, 2019 due to recognition of Bt16.532 billion lease liabilities after using the International Financial Reporting Standards 16.

 

Asia Aviation (AAV)'s net loss in the second quarter was Bt1.141 billion, up from Bt482.47 million in the same period of the previous year.

 

In the first six months this year, the company's net loss was Bt1.812 billion, against the Bt14.72 million net profit it made in the same period of the previous year.

 

As of June 30 this year, the company's liabilities were Bt52.118 billion, up Bt16.904 billion, or 48 per cent.

 

Although Bangkok Airways has not announce its performance, an analyst at Capital Nomura Securities expected the company to lose approximately Bt1.581 billion, up both year on year and quarter on quarter.

 

Source: https://www.nationthailand.com/business/30393047

 

-- © Copyright The Nation Thailand 2020-08-17

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

you think??????

5 hours ago, webfact said:

Airlines see steep plunge in Q2 as Covid-19 ravages business

Ditto Q3 & Q4

1 minute ago, hotchilli said:

Ditto Q3 & Q4

I don't see how any of them can survive.

The planes cost a lot of money even when they don't fly.

And most of them are on lease.

 

The governments of the world have deliberately destroyed Aviation, cruise ships and tourism with no real justification. Even a world war wouldn't have been this destructive to the world economy.

Edited August 17, 20205 yr by BritManToo

So they lost less in the this year than last !! Maybe Covid is a good thing.

Was that a Rooster pun?? 

58 minutes ago, BritManToo said:

I don't see how any of them can survive.

The planes cost a lot of money even when they don't fly.

And most of them are on lease.

 

The governments of the world have deliberately destroyed Aviation, cruise ships and tourism with no real justification. Even a world war wouldn't have been this destructive to the world economy.

mass movement of human beings is dead for the time being. without mass vaccination, heard immunity or a revert back to how life was this is looking like a decade or so of unbelievable change on this planet. personally i am making plans now to do some travelling within thailand before many of the tourist areas become very desolate and not safe areas to be in. 

 

awesome time to be 43. 

7 hours ago, webfact said:

Chansin Treenuchagron, Thai Airways International (THAI) acting president, explained that in the second quarter of this year, the company lost Bt5.339 billion, down from Bt6.883 billion in the same period of the previous year.

So during an enforced shutdown the company lost less money than when they were fully operational..........Hmmmmm.......

Probably because they were not subsidising Hi So's and hangers on with all the free trips. Or certain people were not getting the usual shares from the trough.

Flag carriers may survive as subsidized by taxpayers not passengers.

One cannot imagine really bumping into hi-so VIPs on the VIP bus in LOS?

 

The real tragedy will be that efficient budget airlines with shareholders who offered a discount product while needing to make a profit will be those who'll disappear.

Many of the staate airlines have large pension liabilities.

Even once a 100% safe vaccine universally appled  ) even to the humblest cleaner in your transit airport etc) many will think twice about discretionary travel plus many people will have less disposable cash to flash. Even if covid ends tomorrow I think it'll be years before airline travel becomes as cheap and easy as before, this of course will overlap onto nations heavily reliant on International tourism.

28 minutes ago, RubbaJohnny said:

Even once a 100% safe vaccine universally appled  ) even to the humblest cleaner in your transit airport etc) many will think twice about discretionary travel plus many people will have less disposable cash to flash. Even if covid ends tomorrow I think it'll be years before airline travel becomes as cheap and easy as before, this of course will overlap onto nations heavily reliant on International tourism.

Nah, the travel restrictions are never going away.

I'd be on a plane to Cambodia/Vietnam tomorrow if there were cheap flights and no silly (and expensive) hoops.

COVID is a fake fear that only the foolish have bought into.

Edited August 17, 20205 yr by BritManToo

on a bright side, politicians around the world gets a hint what the world will

be like if they continue follow the folly of co2 nonsense,

and discontinue the entire brain fart altogether.

we can only hope

This morning the Bankruptcy court approved THAI Airways rehabilitation plan so obviously the majority of creditors are going along with it too.

large numbers of pilots soon to be seen begging for food and arms

If you barricade your country and don't fly your planes profits can go down is the rocket science behind the big ravaging falls ????

12 hours ago, BritManToo said:

Nah, the travel restrictions are never going away.

I'd be on a plane to Cambodia/Vietnam tomorrow if there were cheap flights and no silly (and expensive) hoops.

COVID is a fake fear that only the foolish have bought into.

I hope you get it tomorrow

How many people would be sorry if THAI went bankrupt and disappeared?

Unfortunately it will not be allowed to go under, but will be kept going with large injections of tax payers money.

On 8/17/2020 at 3:00 AM, webfact said:

lost Bt5.339 billion, down from Bt6.883 billion in the same period of the previous year.

good  news for THAI  then ????

How Thai can possibly continue is an enigma of biblical proportions.  

Quite a lot of Thai's owned fleet are now worthless. A340-500s unsellable for years, A340-600s being dumped by most airlines, B747-400s sadly disappearing from airline fleets and many A380 operators putting their aircraft into long term storage as currently they have no value. Lets not forget new B787s and A350s due to be delivered are being deferred by many airlines due to lack of demand for the foreseeable future. B77X deliveries now back to at least 2022 due to engine problems. Long haul is going to have a very slow recovery. The only hope for cheap flights between Europe and Thailand will be a fare war between Emirates and Qatar as Emirates are suffering from having no small aircraft. 

2 hours ago, Robin said:

How many people would be sorry if THAI went bankrupt and disappeared?

Amongst the subset of non-tax paying TV posters whose main hope is for Thailand's economy to tank and the Baht to collapse so that their pensions give them back the economic superiority that is rightfully theirs, none.

 

Quote

Unfortunately it will not be allowed to go under, but will be kept going with large injections of tax payers money.

THAI Airways hasn't had a single Baht of taxpayers money and the current rehabilitation plan doesn't call for any either. Of course that doesn't fit in with the above group's narrative so let's ignore annoying facts like that.

3 hours ago, thedemon said:

Amongst the subset of non-tax paying TV posters whose main hope is for Thailand's economy to tank and the Baht to collapse so that their pensions give them back the economic superiority that is rightfully theirs, none.

I'm quite happy with my 'economic superiority' on a pension getting 40bht/pound.

I can still afford a 'pretend wife', a kid at university, and a gf on the side.

Edited August 18, 20205 yr by BritManToo