Thai airlines soar to record profits amid tourism boom

[webfact]

 

BANGKOK (NNT) - Thailand's aviation sector has experienced an impressive recovery, posting record profits in 2023, driven by a resurgence in the country’s tourism industry.

 

Airlines and tourism-related businesses listed on the Stock Exchange of Thailand (SET) saw a dramatic shift from the previous year's losses to substantial profits. 

 

The total profit for the sector reached 31.4 billion baht, escalating to 40 billion baht when including operations of Airports of Thailand (AOT). This turnaround is a major rebound from the 21 billion baht loss recorded in 2022, which also included AOT's figures.

 

Leading the charge, Thai Airways reported unprecedented profits of 28 billion baht, the highest in its history and a stark contrast to the 12 billion baht loss before the COVID-19 pandemic in 2019.

 

Despite achieving a revenue of 161.07 billion baht in 2023, the airline has yet to surpass its 2019 revenue figures. In response, Thai Airways has announced plans for a capital increase through additional stock issuance, aiming to restore shareholders' equity to positive levels by the end of the year, with hopes to resume trading its shares on the stock market by 2025.

 

Bangkok Airways also reported a profitable year with earnings exceeding 3.1 billion baht, attributed to the industry's recovery, bolstered by strategic partnerships like the one with Singapore Airlines.

 

The collaboration, alongside code-share agreements with 28 other airlines, aims to facilitate easier travel to and from Thailand and neighboring regions.

 

Thai AirAsia experienced a significant turnaround, posting a profit of 2.81 billion baht in the final quarter of 2023, culminating in a total profit of 465 million baht for the year. The airline's CEO anticipates a strong year ahead, fueled by the return of Chinese tourists and new flight routes.

 

Thai AirAsia plans to transport 21 million passengers in 2024, aiming for a 90% passenger load factor and a 20 to 23% increase in revenue, supported by an expanded fleet of 60 aircraft by year's end.

 

by Krajangwit Johjit

 

Source: NNT 2024-03-05

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

 

[ezzra]

No wonder because every time i fly to Oz the business class always full while

some sate in the economy class are still vacant,

and they say there's a recession...

[Goat]

Great news.

They had a few terrible years with covid and some management issues.

I am sure all the Aseannow members will also be happy to hear this that they are back in the game with record profits.

Well done Thailand.

[realfunster]

I'll keep the champagne on ice for now, a quick Google shows a number of airlines airlines had very strong profits last year.

 

Not surprising really, as consumers, we have all noticed the significant fare increases on 2019 levels pre-COVID.

Combined with some enforced efficiency measures taken during the pandemic, bottom line should improve. 

Most fares I have checked over the past year are running 20-40% above 2019 levels. 

One wonders if there is some price-fixing going on in the industry...

 

As for THAI specifically, one swallow does not a summer make.

There are years of mismanagement and a toxic culture to address.

Let's see how they progress with a normalising global airline industry over the next couple of years.

[Photoguy21]

Was the profits due to full flights or did the airline just make significant increases in the fares?

[Bangkok Barry]

I guess that's what happens when you raise fares. Profits rise too. Who'da thunk it.

[hotchilli]

2 hours ago, webfact said:

posting record profits in 2023, driven by a resurgence in the country’s tourism industry.

And a substantial hike in ticket prices.

[john donson]

same for food and drug companies... we pay for their profits

[dinsdale]

Airlines, energy providers. supermarkets, banks, etc, etc all making massive profits. Nothing at all to do with price gouging. Covid and post covid prices for essentials are the greatest crime against humanity this world has ever seen. In a depression the rich always get richer.

Edited March 5 by dinsdale

[dinsdale]

1 hour ago, Goat said:

Great news.

They had a few terrible years with covid and some management issues.

I am sure all the Aseannow members will also be happy to hear this that they are back in the game with record profits.

Well done Thailand.

Tongue in cheek? One would certainly hope so.

[RichardColeman]

Complete hogwash and profiteering - my return flight today is £400 more than it was prior to covid. Pure theft. Shame BA is not flying direct to atleast give the appearance of competition. They will be pricing themselves out of the market - family of 4 return flights to the UK for a holiday now is near £4,000 before you even step foot on thai soil

[Goat]

3 minutes ago, dinsdale said:

Tongue in cheek? One would certainly hope so.

no.i like when people, and especially Thais do well.

You dont?

[Goat]

1 minute ago, RichardColeman said:

Complete hogwash and profiteering

Private companies are set up to make money. That is capitalism free market. It is not free public transport.

 

 

1 minute ago, RichardColeman said:

 

They will be pricing themselves out of the market - family of 4 return flights to the UK for a holiday now is near £4,000 before you even step foot on thai soil

You say it like it is a bad thing.

[dinsdale]

7 minutes ago, Goat said:

no.i like when people, and especially Thais do well.

You dont?

I like it when big business is not ripping me off. You don't? Airfare to where I go is up around 30-40% from pre-covid/covid times.

Edited March 5 by dinsdale

[Goat]

4 minutes ago, dinsdale said:

I like it when big business is not ripping me off. You don't? Airfare to where I go is up around 30-40% from pre-covid/covid times.

They are publicly listed companies with many small shareholders. The can charge what they want. If you dont like it, dont use it. It isnt a charity.

 

Inflation is to be expected after all the money printing that went on.

[Chongalulu]

23 minutes ago, dinsdale said:

Covid and post covid prices for essentials are the greatest crime against humanity this world has ever seen. In a depression the rich always get richer.

Edited 19 minutes ago by dinsdale

Yes,those trifling matters like the Holocaust and other genocides of history pale into insignificance Vs an up tick in air fares,eh? 

[Mike Lister]

The airline has made a much higher profit than usual because they are under court order financial protection and have been able to persuade many many holders of their debt, to reduce that debt. Even small shareholder who have held their shares via an LTF for the past twenty years, have had to foregoes dividends and any increase in the share price, since the purchase date. Whether or not any of that makes them a more financially efficient airline, is another story.

[dinsdale]

4 minutes ago, Goat said:

They are publicly listed companies with many small shareholders. The can charge what they want. If you dont like it, dont use it. It isnt a charity.

 

Inflation is to be expected after all the money printing that went on.

Inflation is happening true. Why is another question. But if it's inflation then why massive profits? Same with the energy companies. Charges going up 25-30%+ in some places and the companies are making record profits. Supermarkets. Record profits. This is not just down to inflation. This is daylight robbery.

[Goat]

2 minutes ago, dinsdale said:

Inflation is happening true. Why is another question. But if it's inflation then why massive profits? Same with the energy companies. Charges going up 25-30%+ in some places and the companies are making record profits. Supermarkets. Record profits. This is not just down to inflation. This is daylight robbery.

All public companies that are setup to make profits and deliver dividends to the investors. 

They are supposed to make record profits. If they wernt they would be doing something wrong. 

A billion dollars isnt worth as much as it was 4 years ago.

[still kicking]

1 hour ago, hotchilli said:

And a substantial hike in ticket prices.

What price hike? I just booked Perth BKK with Thai air for just $537 and that is non-stop return.

[still kicking]

4 minutes ago, Goat said:

All public companies that are setup to make profits and deliver dividends to the investors. 

They are supposed to make record profits. If they wernt they would be doing something wrong. 

A billion dollars isnt worth as much as it was 4 years ago.

Just look at the banks they make millions of dollars in just 6 months.

[dinsdale]

3 minutes ago, Goat said:

All public companies that are setup to make profits and deliver dividends to the investors. 

They are supposed to make record profits. If they wernt they would be doing something wrong. 

A billion dollars isnt worth as much as it was 4 years ago.

Record profits = record payouts for the CEO = less money in the pockets of the people who are providing the record profits. The few get richer at the expense of the public. Profits are profits but profiteering is another thing.

[dinsdale]

6 minutes ago, still kicking said:

What price hike? I just booked Perth BKK with Thai air for just $537 and that is non-stop return.

Fly domestic. Prices are up. This is an international flight and yep sure seems a good price. BKK-Adelaide flying Singapore Airlines is up around 50% pre covid.

[adrin]

pattaya and esan boomers on this board still talking how bad thai economy and tourism is 😂

[DjSilver]

This is crazy, when in reality tourism needs to be lower than during lockdown. So more Thai companies goes bankruptcy and learns not to scam foreigners.

[dinsdale]

11 minutes ago, adrin said:

pattaya and esan boomers on this board still talking how bad thai economy and tourism is 😂

What a silly comment. Ps dont laugh at your own comments. Leave that for others to determine. 

[Pdavies99]

5 hours ago, webfact said:

 

BANGKOK (NNT) - Thailand's aviation sector has experienced an impressive recovery, posting record profits in 2023, driven by a resurgence in the country’s tourism industry.

 

Airlines and tourism-related businesses listed on the Stock Exchange of Thailand (SET) saw a dramatic shift from the previous year's losses to substantial profits. 

 

The total profit for the sector reached 31.4 billion baht, escalating to 40 billion baht when including operations of Airports of Thailand (AOT). This turnaround is a major rebound from the 21 billion baht loss recorded in 2022, which also included AOT's figures.

 

Leading the charge, Thai Airways reported unprecedented profits of 28 billion baht, the highest in its history and a stark contrast to the 12 billion baht loss before the COVID-19 pandemic in 2019.

 

Despite achieving a revenue of 161.07 billion baht in 2023, the airline has yet to surpass its 2019 revenue figures. In response, Thai Airways has announced plans for a capital increase through additional stock issuance, aiming to restore shareholders' equity to positive levels by the end of the year, with hopes to resume trading its shares on the stock market by 2025.

 

Bangkok Airways also reported a profitable year with earnings exceeding 3.1 billion baht, attributed to the industry's recovery, bolstered by strategic partnerships like the one with Singapore Airlines.

 

The collaboration, alongside code-share agreements with 28 other airlines, aims to facilitate easier travel to and from Thailand and neighboring regions.

 

Thai AirAsia experienced a significant turnaround, posting a profit of 2.81 billion baht in the final quarter of 2023, culminating in a total profit of 465 million baht for the year. The airline's CEO anticipates a strong year ahead, fueled by the return of Chinese tourists and new flight routes.

 

Thai AirAsia plans to transport 21 million passengers in 2024, aiming for a 90% passenger load factor and a 20 to 23% increase in revenue, supported by an expanded fleet of 60 aircraft by year's end.

 

by Krajangwit Johjit

 

Source: NNT 2024-03-05

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

So it would have nothing to do with voluntary bankruptcy (debt write-offs) a few years ago, ..nothing owed, nothing paid!

 

 

 

 

[dinsdale]

5 hours ago, webfact said:

Thai AirAsia plans to transport 21 million passengers in 2024, aiming for a 90% passenger load factor and a 20 to 23% increase in revenue, supported by an expanded fleet of 60 aircraft by year's end.

Being that this is the very minimum that airfares have gone up I don't doubt it.

[findlay13]

More Bonuses for the top boys?

[Willy Wombat]

More bonuses to the bosses and a bigger tax windfall to the government’s