Thai Airways posts earnings after debt restructuring, assets sale

[webfact]

 

By Panithan Onthaworn

 

Thai Airways International (THAI), the country’s flag carrier and largest airline, reported a net profit of 51 billion baht for the first nine months of the year on Monday. It was a drastic turnaround from the 49 billion baht loss from a year earlier.

 

The key driver of the airway’s earnings was profit from debt restructuring, including sales of equities and assets, the statement said.

 

Thai Airways said it gained 60 billion baht from the debt restructuring process, which comprises “adjustments to defaulted interest, derecognition, and adjustment of financial liabilities.”

 

Full story: https://www.thaienquirer.com/34995/thai-airway-posts-earnings-after-debt-restructuring-assets-sale/

 

-- © Copyright Thai Enquirer 2021-11-16

 

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[RichardColeman]

I guess posting a 9 billion baht operational cost for the year sounded worse

 

 

 

 

[Willy Wombat]

Rubbery figures

[Hans Johnson]

So maybe I will finally get my refund

[tingtong]

Loads of BS.

Earning?

Sold some planes.

What is for next year, when no planes left to sell??

[Swiss1960]

Fully artificial bookkeeping, not a single Baht really earned... 

[steven100]

oh TG .....   you keep telling porkies .....   how the heck could they possibly have made 60 billion even with an asset sale.   what a load of hog wash .

 

I didn't read anywhere about a purchase of aircraft by anyone  ?

who the heck is buying any planes in these uncertain times  ?

did they sell some land and/or offices somewhere   ?

[Ralf001]

They dun good sales at them Pop Up Restaurants !!

[scorecard]

23 minutes ago, steven100 said:

oh TG .....   you keep telling porkies .....   how the heck could they possibly have made 60 billion even with an asset sale.   what a load of hog wash .

 

I didn't read anywhere about a purchase of aircraft by anyone  ?

who the heck is buying any planes in these uncertain times  ?

did they sell some land and/or offices somewhere   ?

Even if they did sell some planes (very unlikely to be even be 1 aircraft and at a very low price, especially in the current circumstances of the global aviation industry). And if they did sell 1 or 2 buildings, that cannot add up to the 'billions' they are quoting. 

Edited November 15, 2021 by scorecard

[ezzra]

Let's sums it all up and say that whatever TG put out, good or bad, we should all take it with a grain of salt, BIG grain of salt...

[GinBoy2]

This is a smoke and mirrors game.

 

They have moved a sh**t load of distressed assets to below the line. Those assets, aka aircraft are practically worthless, just add them to the A340-500's.

 

So 'maybe' on a current account basis they may be profitable, they are still horribly in debt

[welshguy]

?????

 

Ive seen lots of nonsense posted on here..

 

This though takes the biscuit!!

 

Its not even "amazing"....its ridiculous.

 

Pay me back the money I paid you in March 2020 for my cancelled September 2020 flight then moneybags Thai Airways!  What a load of old tosh!

[alyx]

1 hour ago, Hans Johnson said:

So maybe I will finally get my refund

OMG...you miss the point....: your "investment" is part of the "net profit of 51 billion baht"

[heybuz]

1 hour ago, Hans Johnson said:

So maybe I will finally get my refund

you'll have to beat the crowd in the photo.

 

[scorecard]

29 minutes ago, GinBoy2 said:

This is a smoke and mirrors game.

 

They have moved a sh**t load of distressed assets to below the line. Those assets, aka aircraft are practically worthless, just add them to the A340-500's.

 

So 'maybe' on a current account basis they may be profitable, they are still horribly in debt

 

Nice point.

 

But even if we only look at the actual core trading data for the period it can't be billions.

 

Just not possible given that for the first nine months of the year they had very few flights and many of the flights were repat. flights with the aircraft around one third full.

 

Some were cargo flights but they are limited in where they have permission to land/take off, again can't possibly amount to billions.

 

[MrJ2U]

2 hours ago, webfact said:

sales of equities and assets

After that what was left in regards to profit?

 

It'll be more revealing to see how the airline is doing in the first quarter of 2022.

 

It seems that the government has changed the tune on its "National Airlines" stance.

 

Does this mean a return to the,*free" travel days again for politicians, important people, family members, poodles,etc?

 

 

 

 

[itsari]

What appears to be accounting acrobatics 

 

[Le Addeur noir]

1 hour ago, Swiss1960 said:

Fully artificial bookkeeping, not a single Baht really earned... 

The TG management have got to be some of the most incompetent managers possible. With demand for cargo airplanes in record demand, Thai Airways left a pair of cargo 474-400s sitting on the ground at U-Tapao gathering dust, when they could have been earning vital revenue for the carrier.

 

These two airplanes were eventually sold to a Moldovan cargo airline, probably for peanuts.

[Le Addeur noir]

22 minutes ago, MrJ2U said:

After that what was left in regards to profit?

 

It'll be more revealing to see how the airline is doing in the first quarter of 2022.

 

It seems that the government has changed the tune on its "National Airlines" stance.

 

Does this mean a return to the,*free" travel days again for politicians, important people, family members, poodles,etc?

Has this actually stopped?.

22 minutes ago, MrJ2U said:

 

 

 

 

 

[MrJ2U]

14 minutes ago, Le Addeur noir said:

Has this actually stopped?.

 

Hard to say

 

 

Lately Anutin,Pryutt, and a few others have been jetting around on Thai Air. 

 

There definitely not paying for it.

 

And their not flying economy.

 

Transparency isn't a strong suite of Thai politics.

 

I'd assume the owed creditors are getting agitated.

Edited November 16, 2021 by MrJ2U

[Srikcir]

In debt restructuring, creditors (if you have a refund you're likely a creditor) convert their debt into equity in a tax neutral transaction. No gain, ie.,in the form of taxable income results.

Sale of used Thai Airways aircraft, especially if minimally maintained, is also unlikely to result in taxable income except in the case wheren such used aircraft appreciate in value or the sales value exceeds the deducted depreciation for tax purpose (unlikely in this case). 

Thus, hard to understand that debt restructuring and  sale of used aircraft alone resulted in "posted earning."

[hotchilli]

3 hours ago, webfact said:

Thai Airways International (THAI), the country’s flag carrier and largest airline, reported a net profit of 51 billion baht for the first nine months of the year on Monday. It was a drastic turnaround from the 49 billion baht loss from a year earlier.

And I believe in the tooth fairy 

[zzaa09]

31 minutes ago, MrJ2U said:

Hard to say

 

 

Lately Anutin,Pryutt, and a few others have been jetting around on Thai Air. 

 

There definitely not paying for it.

 

And their not flying economy.

 

Transparency isn't a strong suite of Thai politics.

 

I'd assume the owed creditors are getting agitated.

Needless to say, they have influential friends in high places...

[ChrisY1]

Lat week they were about to downsize their overly huge workforce...also stating that things will get better once 43 aircraft have been sold or disposed of....now they say that during a pandemic when virtually no-one travelled anywhere....that they've miraculously made a Thb 50 billion profit....every other global airline has crashed!! 

I'm sure the banks and financiers now will jump at the chance to lend them Thb 25 Billion!

[herfiehandbag]

4 minutes ago, ChrisY1 said:

Lat week they were about to downsize their overly huge workforce...also stating that things will get better once 43 aircraft have been sold or disposed of....now they say that during a pandemic when virtually no-one travelled anywhere....that they've miraculously made a Thb 50 billion profit....every other global airline has crashed!! 

I'm sure the banks and financiers now will jump at the chance to lend them Thb 25 Billion!

Why borrow? All they have to do is Mark time for 3 months, carry on as they are doing, flog a few more doughnuts and they will have the money... 

[Stargeezr]

This just shows that when airlines talk about profits or losses, it does not involve

any real losses. Airlines that have gone totally out of business, are the ones that did suffer

enough real losses, that they folded.  Even second hand jet liners are worth some money, and

if some of the older jets were sold off to companies that wanted freighter, then Thai Air

would have made some money from the parked aircraft that have not been flying since the pandemic

started.  When airlines talk about losses in a given year, it is a loss of the expected profits that they

did not make, not actual money.  Been that way for years. Most airlines that are tied to their country

as the national airline of that country,  get certain monies, and other stuff from their home country,  they can

 go a long way on so called years of losses, Thai Air is no different.

Geezer

[martin81]

I think they confuse revenue profit and income. They cannot have profit of 50 billion with monthly revenue of around 1 billion in 9 months. Tg certainly have plenty of cost for employees fuel and aircraft maintenance.

Edited November 16, 2021 by martin81
Spelling error

[roquefort]

2 hours ago, Srikcir said:

In debt restructuring, creditors (if you have a refund you're likely a creditor) convert their debt into equity in a tax neutral transaction. No gain, ie.,in the form of taxable income results.

Sale of used Thai Airways aircraft, especially if minimally maintained, is also unlikely to result in taxable income except in the case wheren such used aircraft appreciate in value or the sales value exceeds the deducted depreciation for tax purpose (unlikely in this case). 

Thus, hard to understand that debt restructuring and  sale of used aircraft alone resulted in "posted earning."

I suspect the government wrote off a shedload of TG debt which the accountants miraculously turned into "profit". Loaves and fishes.

[Mr Meeseeks]

If I knew patongo were so profitable I would have got my missus a stall years ago.

 

We'd be billionaires by now. 

 

????

[tomacht8]

Thai has mostly sold land and buildings. Parts of the company may have been sold to newly founded LTDs. So Thai can post a claim (unpaid customer invoice) in its own balance sheet. But cash is far from flowing. Thai airways' operational business has not been profitable since many, many years.

Edited November 16, 2021 by tomacht8