THAI’s third quarter results show little light ahead

By THE NATION

 

 

In response to Thai Airways International (THAI)’s poor earnings in the third quarter of this year, acting president Chansin Treenuchagorn said the airline is doing its best to reduce costs to mitigate the impact of Covid-19 from the previous quarter.

 

The airline has been providing cargo services in certain routes and also organising special flights to repatriate Thai nationals. It is also placing more emphasis on the domestic market after its subsidiary, ThaiSmile began flying local routes from June 1 this year.

 

In the third quarter of this year, THAI and ThaiSmile’s passenger production had dropped 95 per cent, while passenger traffic had decreased 97.8 per cent. The average cabin factor was 34.9 per cent lower than last year, when the average factor stood at 80 per cent.

 

So far, only 490,000 passengers have been transported in the third quarter, marking a drop of 91.9 per cent from 2019. Freight production, meanwhile, was 96.2 per cent lower than the previous year, while freight traffic had dropped 93.6 per cent compared to 2019. The average freight load factor, however, was 91.2 per cent higher than the previous year, when the average stood at 52.2 per cent.

 

The total revenue earned by THAI and its subsidiaries in the third quarter this year was Bt3.73 billion baht less or 91.7 per cent lower than the Bt41.3 billion earned in the same quarter last year. The main reason for this was that revenue from passenger and cargo transportation had dropped by Bt37.66 billion (95.1 per cent) and revenue from other activities had dropped by Bt1.72 billion (56.2 per cent).

 

The airline’s total expenses stood at Bt19.38 billion or 59.5 per cent less than the Bt28.48 billion incurred last year, mainly due to reduction in flights.

 

Fixed expenses, however, remained high, while revenue earned was not enough to compensate for operating loss of Bt15.65 billion, which was Bt12.8 billion or 450.6 per cent higher than the same quarter last year.

 

THAI and its subsidiaries recorded a net loss of Bt21.53 billion, which was Bt16.85 billion or 360.1 per cent more than the losses incurred in the previous year.

 

Losses attributed to the owners of the parent company was Bt21.54 billion, representing a loss of Bt9.87 per share compared to last year’s loss of Bt2.14 per share.

 

Source: https://www.nationthailand.com/news/30397840

 

-- © Copyright The Nation Thailand 2020-11-12

 

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How could there be any light at the end of the tunnel if they are only flying repatriation flights and very few of those it seems.  Can not make money if the Airports are not open for international tourists.

18 minutes ago, snoop1130 said:

The total revenue earned by THAI and its subsidiaries in the third quarter this year was Bt3.73 billion baht less or 91.7 per cent lower than the Bt41.3 billion earned in the same quarter last year

Really, it is not shocking at all.  No flights means no money, and still employing employee's means a bankrupt airline is still hemorrhaging cash.....close it down completely, it is the only way to stop the bleeding.

 

"Fixed expenses, however, remained high, while revenue earned was not enough to compensate for operating loss of Bt15.65 billion, which was Bt12.8 billion or 450.6 per cent higher than the same quarter last year."

 

Just a horrific issue.

Edited November 12, 20205 yr by ThailandRyan

I think many of us will be unsurprised by the collapse in passenger numbers. But the freight results are shocking. If this is any guide as to what's happening in the real economy, these numbers are beyond awful. I am astonished and hope someone with better insight can perhaps shed some light. Regional GDP has bounced back reasonably strongly in much of Asia but this does not seem to be reflected in these freight figures. 

They are in THB350 billion of debt and growing daily.

 

????

 

 

55 minutes ago, perry21 said:

I think many of us will be unsurprised by the collapse in passenger numbers. But the freight results are shocking. If this is any guide as to what's happening in the real economy, these numbers are beyond awful. I am astonished and hope someone with better insight can perhaps shed some light. Regional GDP has bounced back reasonably strongly in much of Asia but this does not seem to be reflected in these freight figures. 

I don't think it is that shocking.  TG freight is carried on passenger flights - I don't believe they run any dedicated freight planes unlike some other airlines like Eva.  No passenger flights = no freight; that's why the correlation.  Pretty simple really.  

The Donald Trump of airlines, the parties over, don’t slam the door on your way out. 

8 hours ago, snoop1130 said:

THAI and its subsidiaries recorded a net loss of Bt21.53 billion, which was Bt16.85 billion or 360.1 per cent more than the losses incurred in the previous year.

Ain't life grand when you can go to the pockets of unsuspecting financiers ????

They are never going to make any money with this government's anti farang approach  ????

10 hours ago, snoop1130 said:

(THAI)’s poor earnings in the third quarter of this year,

.....but have"nt the earnings been poor for the past 20 years??? ????     

9 hours ago, Mr Meeseeks said:

They are in THB350 billion of debt and growing daily.

 

????

 

 

And it seems...no-one really cares!

I am surprised that as an insolvent and bankrupt business they are still allowed to keep going, keep racking up billions of debt, and keep stringing their creditors along.

 

They are ever going to be able to pay off that debt. It's just not economically possible, even without the black swan event that was COVID-19.

 

Biggest boondoggle in aviation history. In future they will write books about it.

I'm sure most of us hope they fail and shut entirely. Fingers crossed ????

3 hours ago, PatOngo said:

.....but have"nt the earnings been poor for the past 20 years??? ????     

As long as they insist on Thai management it will continue.  

14 hours ago, snoop1130 said:

The airline has been providing cargo services in certain routes and also organising special flights to repatriate Thai nationals. It is also placing more emphasis on the domestic market after its subsidiary, ThaiSmile began flying local routes from June 1 this year.

Donuts not making any impact then?

4 hours ago, sammieuk1 said:

They are never going to make any money with this government's anti farang approach  ????

They're never going to make money with Thai management & government fingers in the pie.

As they have decided to keep the company going ,why not reduce the workforce headed by redundancy amongst the senior management and big reduction in their salaries followed by ground staff and if course aircrew

sad thing, they will never be able to repay even a fraction of their debt, should shut down the main body and sell what they can next year or the year after that, Qantas went through a similar thing a few years back, guess there many in same trouble now

1 hour ago, mickymouse1 said:

As they have decided to keep the company going ,why not reduce the workforce headed by redundancy amongst the senior management and big reduction in their salaries followed by ground staff and if course aircrew

That would cost money they don't have as Thai labour law requires mandatory redundancy payments and would result in union action and further court costs. 

 

They are totally messed. 

Looks like an evidence for anyone loving freedom and conscious about economy, for everybody who works for win his life, that the only one real light is democracy and stop corruption from the very top level at each side.

This COVID flue story time is pathetic.

3 hours ago, Fex Bluse said:

I'm sure most of us hope they fail and shut entirely. Fingers crossed ????

 

I'm not sure who I feel more sorry for; the thousands of employees that have lost their careers and are now struggling to take care of their families or someone that obviously has such a miserable life that they would make a comment like this.

15 years ago I flew THAI internationally all the time.

 Then some genius started pricing the passenger tickets above ALL other air carriers. They were still doing it when the pandemic arrived. Plain stupid.  Although I always compared prices I have not purchased a ticket on THAI in 15 years. Its not rocket science. 

15 hours ago, perry21 said:

I think many of us will be unsurprised by the collapse in passenger numbers. But the freight results are shocking. If this is any guide as to what's happening in the real economy, these numbers are beyond awful. I am astonished and hope someone with better insight can perhaps shed some light. Regional GDP has bounced back reasonably strongly in much of Asia but this does not seem to be reflected in these freight figures. 

The freight figures me very little to the common man as written.

 

16 hours ago, snoop1130 said:

Freight production, meanwhile, was 96.2 per cent lower than the previous year, while freight traffic had dropped 93.6 per cent compared to 2019. The average freight load factor, however, was 91.2 per cent higher than the previous year, when the average stood at 52.2 per cent.

Basic Import & Export tonnage and type of goods by air freight would help.

Surprise, surprise!!!! With complete imbeciles at leading positions everywhere in politics AND businesses, what do you expect? With closed borders and defaming any foreigner as a pesty, virus carrying superspreader and visa requirements that would even make Pol Pot throw up... What the F do you f(deleted)ng EXPECT????????????? Damn!!!!!! ???? 

Edited November 13, 20205 yr by Freigeist365

1 hour ago, hotchilli said:

Donuts not making any impact then?

Not yet. Donut income is still in the process of being divvied up. Anything left over wont amount to much. But the cutlery and crockery fire sale could be just the thing to turn the cashflow tide. The fun is just starting. They will be out of cash next month and if they don't sell any planes where will the money come from to pay those consultants handling their rehabilitation plan? The auditors haven't signed off probably because they know they wont be paid. 

1 hour ago, thedemon said:

 

I'm not sure who I feel more sorry for; the thousands of employees that have lost their careers and are now struggling to take care of their families or someone that obviously has such a miserable life that they would make a comment like this.

When have they laid off thousands of employees? 

 

I must have missed this announcement.

The airline is struggling, yet they don't respond when I fill out there request to buy a ticket on their scheduled repatriation flight. I sent a follow up  email and 24 hours later, still nothing.

1 hour ago, Rubble said:

Not yet. Donut income is still in the process of being divvied up. Anything left over wont amount to much. But the cutlery and crockery fire sale could be just the thing to turn the cashflow tide. The fun is just starting. They will be out of cash next month and if they don't sell any planes where will the money come from to pay those consultants handling their rehabilitation plan? The auditors haven't signed off probably because they know they wont be paid. 

The accounts have not been signed off.

 

I would suggest, as I did earlier that fixing this is impossible and that they are just prolonging the inevitable.

 

It's gone, but national pride and greed will not let it go quietly.

I think Street donuts are the only answer. 

10 minutes ago, MrDudley said:

I think Street donuts are the only answer. 

Thai AIrways "Fly 1st class in style with coffee and donuts without leaving Bangkok"

And as overall debt climbs relentlessly... The Baht strengthens against all other currency... How Strange.