Thai Airways' staggering journey from bankruptcy to recovery

[webfact]

 

Thai Airways International has announced plans to finalize its restructuring efforts later this year, marking a remarkable comeback from the financial woes brought on by the Covid-19 pandemic.

 

The airline, based in Bangkok, has been working tirelessly to reduce its debts and revamp its operations amid a sharp decline in air travel caused by the global health crisis.

 

With hopes high for a return to profitability, Thai Airways recently reported positive Q1 2024 results, signaling a promising path forward as it aims to relist on the stock market and regain its former standing in the industry.

 

Despite facing bankruptcy protection in 2020, Thai Airways has undergone significant changes over the past four years, implementing a wide-ranging restructuring plan to revitalize the company.

 

While the airline managed to stay profitable in Q1 2024, challenges remain, including rising operating costs and a decrease in restructuring gains that led to an 80% drop in net profit compared to the previous year. However, the airline saw an 11% increase in revenues, supported by a rise in passenger numbers.

 

Looking ahead, Thai Airways is looking to expand its operations with new European routes and the addition of more Boeing and Airbus aircraft to its fleet.

 

Picture courtesy: Wikimedia

 

-- 2024-05-13

 

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[still kicking]

Come on guys start picking on Thai not everybody comes from Europe. Nothing wrong with Thai if you come from Australia 

[soi3eddie]

Thai Airways service is back to pre-pandemic levels in my recent experience last month (BKK-LHR in Biz Class). Only problem for travellers is that fares have almost doubled since 2019. No wonder they have recovered. Less seats at higher prices, not difficult to make more money. Sacking the freeloading staff and stopping the junkets for well connected people in biz/first class makes a difference too. Shame that the A380s are retired - I hear from a friend that it's due to Airbus refusing to support them due to unpaid bills on "bancruptcy restructuring". Not sure if that's correct but would not be surprised.

  

[smedly]

1 hour ago, webfact said:

bankruptcy

don't need to say any more

 

have they learned from this.............I seriously doubt it

[Georgealbert]

Thai Airways reported a quarterly net profit of Bt2.4 billion ($65.2 million), down 80% compared to the year-ago period, where it recorded gains from restructuring and foreign exchange rates. 
 

Revenue rose about 11% year on year to Bt46 billion, with passenger revenues up about 10%. Thai carried close to 3.9 million passengers during the quarter, representing a 10% increase against the year-ago period. Traffic and capacity both grew around 10% as well, with passenger yields holding steady against 2023 levels.”

 

https://www.flightglobal.com/airlines/thai-airways-to-exit-restructuring-in-2024-as-first-quarter-profit-shrinks/158239.article

This was helped as revealed by one of the Board of Directors who shared data which shows that Thai in 2023 was the world’s highest profit margin making airline, as Thai is reportedly charging the highest margin on its ticket sales among all airlines.

 

This below was posted by Piyasvasti Amranaf who is an independent director.

 

[jacko45k]

Is my recollection faulty in that they were in plenty of trouble pre-Covid?

[findlay13]

4 hours ago, still kicking said:

Come on guys start picking on Thai not everybody comes from Europe. Nothing wrong with Thai if you come from Australia 

Brisbane? Delusional

Edited May 12 by findlay13

[findlay13]

They weren't bankrupt! They were restructuring ! ROTFLOL.I flew Thai exclusively until it took me three plus years to get my money back when they "restructured" LOL

Edited May 12 by findlay13

[hotchilli]

4 hours ago, webfact said:

marking a remarkable comeback from the financial woes brought on by the Covid-19 pandemic.

Second miraculous recovery this year... 

[hotchilli]

50 minutes ago, jacko45k said:

Is my recollection faulty in that they were in plenty of trouble pre-Covid?

Conveneintly forgotten

[2baht]

4 hours ago, still kicking said:

 Nothing wrong with Thai if you come from Australia 

Want to bet? 🤔

[fondue zoo]

14 minutes ago, hotchilli said:

Second miraculous recovery this year... 

 

It is truly, The Hub of Miracles

[hotchilli]

5 minutes ago, fondue zoo said:

 

It is truly, The Hub of Miracles

Indeed... 

[ChrisY1]

5 hours ago, still kicking said:

Come on guys start picking on Thai not everybody comes from Europe. Nothing wrong with Thai if you come from Australia 

I'm Aussie and fly Thai everywhere, not just to Australia.....while so many say they're too expensive...I don't know why.

[ChrisY1]

16 minutes ago, 2baht said:

Want to bet? 🤔

OK...I'll bite. Which airline is better for s similar price? BKK--MEL/SYD

[RichardColeman]

Staggering recovery = staggering price increases of 30-40%

[bluejets]

6 hours ago, still kicking said:

Nothing wrong with Thai if you come from Australia 

True.....one thing they could do though is re-instate their Brisbane-Suvarnabhumi and return direct flights.

Right PIA to have to travel down to Sydney and back, not only the time (loose a day each way) but costs approx. an extra $1500 for myself and the wife.

Personally couldn't care less if Sydney sank into the harbour to be quite honest.

Hotels and flights with Qantas(yuk)

Edited May 13 by bluejets

[john smith]

The website is a dog's dinner. Sometimes it works and sometimes it does not. I am referring to my attempts to book a flight to Nepal in November. Initially the website insisted that I wanted to fly today and return today. Sometimes the booking calendar appeared. Sometimes it did not. Eventually my outward and inward dates were recognized. I tapped to book and the page returned to today's date. I give up. A travel agent can do it for me. There are lots of pretty pictures on the website I give them that.

[Rampant Rabbit]

2 hours ago, hotchilli said:

Conveneintly forgotten

along  with all those missing covid  refunds??

[metisdead]

A post with a trolling meme contravening our Community Standards has been removed.

[Mr Meeseeks]

Thai Airways liabilities are still close to 300 billion THB. 

 

You can put that reduction from 500 billion THB down to old fleet sales and debt restructuring, but it very much appears like nothing has changed. 

[Georgealbert]

1 hour ago, Mr Meeseeks said:

Thai Airways liabilities are still close to 300 billion THB. 

 

You can put that reduction from 500 billion THB down to old fleet sales and debt restructuring, but it very much appears like nothing has changed. 

Yes agree, and those liabilities grew by 7.3% in 2023.

 

https://ir.thaiairways.com/wp-content/uploads/2024/02/20240223-thai-mdna-y2023-EN.pdf

[PETERTHEEATER]

7 hours ago, Georgealbert said:

 

Thai Airways reported a quarterly net profit of Bt2.4 billion ($65.2 million), down 80% compared to the year-ago period, where it recorded gains from restructuring and foreign exchange rates. 
 

Revenue rose about 11% year on year to Bt46 billion, with passenger revenues up about 10%. Thai carried close to 3.9 million passengers during the quarter, representing a 10% increase against the year-ago period. Traffic and capacity both grew around 10% as well, with passenger yields holding steady against 2023 levels.”

 

https://www.flightglobal.com/airlines/thai-airways-to-exit-restructuring-in-2024-as-first-quarter-profit-shrinks/158239.article

This was helped as revealed by one of the Board of Directors who shared data which shows that Thai in 2023 was the world’s highest profit margin making airline, as Thai is reportedly charging the highest margin on its ticket sales among all airlines.

 

This below was posted by Piyasvasti Amranaf who is an independent director.

 

British Airways did not make the list? How sad is that....🤔

[john donson]

with all the profits now, will they pay back what they stole for years of losses on the tax payer?

[Georgealbert]

Thai Airways has completed the sale of 18 aircraft.

 

“Thai Airways International (THAI) announced the successful completion of the sale of its entire fleet of 18 retired aircraft, comprising six Boeing 777-200s, six Boeing 777-300s, and six Airbus A380s.

 

THAI CEO Chai Eamsiri confirmed on May 12 that sales agreements have been signed for all 18 aircraft. The airline has already completed the paperwork for six of the aircraft, with the remaining 12 expected to be finalised shortly.”

 

https://www.khaosodenglish.com/news/business/2024/05/13/thai-airways-finalizes-sale-of-all-18-boeing-777-and-a380-aircraft/

[placnx]

10 hours ago, PETERTHEEATER said:

British Airways did not make the list? How sad is that....🤔

British Airways is IAG, #23 on the list.

[Stargeezr]

If you read of an airline losing millions in a year, that is the amount of money lost in profit, compared with how much profit they thought they 

would get. No actual money was lost. I found this out with Air Canada loses, and I checked with my friend who works for them.

  That is why airlines can "lose" money every year and not actually go broke or bankrupt.

[Wiggy]

On 5/13/2024 at 6:19 AM, jacko45k said:

Is my recollection faulty in that they were in plenty of trouble pre-Covid?

Correct. They were in massive trouble pre-Covid. They’re probably using it as an excuse to save a bit of face. 

[Lensytink]

I've been through some tough times, as well, and it's inspiring to see how others can bounce back. When I faced bankruptcy, having a good lawyer was essential. They guided me through the legal complexities and helped me understand my options. If you're in a similar situation as I was, don't hesitate to reach out to someone like https://www.caddellreynolds.com/arkansas-bankruptcy-attorney/. They can make a real difference in getting you back on solid ground.

Edited August 1 by Lensytink