Transport Thai Airways Q1 Profits Soar by 306% as Exit from Rehabilitation Nears

[Georgealbert]

 

Picture courtesy of Khaosod.

 

Thai Airways has posted a remarkable turnaround in its financial performance for the first quarter of 2025, recording net profits of nearly $300 million, a 306% increase year-on-year, with total revenues reaching $1.56 billion (51.6 billion baht). The airline now stands on the brink of exiting its court-supervised business rehabilitation, with a key ruling expected on 4 June.

 

Piyasvasti Amranand, Chairman of the Business Rehabilitation Plan Administration Committee for Thai Airways International (THAI), presented the Q1 results on 8 May. The airline’s impressive growth was attributed to increased global demand for air travel, an expanded fleet, and higher flight frequencies.

 

Passenger numbers rose 11.6% from the previous year to 4.33 million, with Available Seat Kilometres (ASK) and Revenue Passenger Kilometres (RPK) up 21.1% and 20.8% respectively, underlining strong operational momentum.

 

Piyasvasti announced that the airline will grow its fleet from 77 to 81 aircraft in 2025, with deliveries including one Airbus A330, one Boeing 787-9, and two Airbus A321neos. A further 15 aircraft are scheduled for delivery in 2026.

 

“These aircraft will feature seat-back entertainment and complimentary Wi-Fi for all Royal Orchid Plus members, regardless of status. The first deliveries are expected by year-end,” he stated.

 

The airline is also retrofitting its Airbus A330-300s with high-speed internet. Two aircraft are already operational, offering free messaging services, with full Wi-Fi access rolling out for frequent flyers in May.

 

Following an Extraordinary General Meeting of Shareholders on 18 April and official registration of a new board of directors, Thai Airways has fulfilled the final requirements of its court-approved rehabilitation plan. A formal petition to end the process was submitted to the Central Bankruptcy Court on 28 April.

 

The court will hear the case on 4 June. If successful, control of the company will pass from the Rehabilitation Plan Administration Committee to the newly appointed board. The airline will then begin proceedings to resume trading on the Stock Exchange of Thailand in the third quarter.

 

“Resuming trade presents its own challenges, particularly in volatile financial markets. But we believe our recovery, operational discipline, and governance will instil confidence among investors,” said Piyasvasti.

 

Piyasvasti also confirmed that Thai Smile Airways has been officially dissolved, with all of its Airbus A320 aircraft transferred to Thai Airways. Thai Smile ceased operations on 1 January 2024.

 

Looking ahead, he noted that while May and June represent the aviation industry’s traditional low season, advance bookings remain strong. The Australian market is also showing clear signs of recovery, expected to strengthen further during the July–August period, coinciding with peak travel demand from Europe.

 

This momentum, he added, is likely to support continued revenue growth through the second half of 2025.

 

 

  Adapted by Asean Now from Khaosod 2025-05-11.

 

 

 

[JoePai]

Thai Airways has posted a remarkable turnaround

 

Agreed a rather too remarkable turnaround ??

[hotsun]

They would really do well to offer direct flights to los angeles

[rbkk]

I wonder if Thai Airways staff will be rewarded with a bonus? Singapore Airlines staff bonus for 2025 is 8 months salary and in 2024 it was 6.65 months salary.

[sqwakvfr]

I was at BKK last week and on the tarmac I counted 10 Thai Airways Jumbo aircraft(ranging from  B777-300ER and one A380) parked and all looked like they were corroding in the Bangkok weather which is often hot and humid.   I wondered why not just sell these unused aircraft instead of letting them rot in the sun? The value of these aircarft had to be over a billion.  I wonder if the 300+% profit is before of after these unused aircraft are factored in or not.  I have been a pilot for over 30 years and one time I owned a light aircraft and parking an aircraft out in the open in hot and humid weather for extended time will cause damage that will be very expensive to rehab.  Also, I was sad to see these beauties just parked and not flying.  

[Yagoda]

26 minutes ago, sqwakvfr said:

I was at BKK last week and on the tarmac I counted 10 Thai Airways Jumbo aircraft(ranging from  B777-300ER and one A380) parked and all looked like they were corroding in the Bangkok weather which is often hot and humid.   I wondered why not just sell these unused aircraft instead of letting them rot in the sun? The value of these aircarft had to be over a billion.  I wonder if the 300+% profit is before of after these unused aircraft are factored in or not.  I have been a pilot for over 30 years and one time I owned a light aircraft and parking an aircraft out in the open in hot and humid weather for extended time will cause damage that will be very expensive to rehab.  Also, I was sad to see these beauties just parked and not flying.  

I doubt they are letting Aircraft rot on the runways. Seeing aircraft on the tarmac while you spent 5 minutes rolling past does not evidence poor business decisions.

 

 

[impulse]

Call me skeptical of $300 Million profit on $1.56 billion in revenue, when the worldwide airline (net) profitability runs around 2-4%.

 

I wonder how many one time entries they had?   Perhaps they put Thai Smile's A320s and other assets onto their balance sheet?

 

[sqwakvfr]

1 hour ago, Yagoda said:

I doubt they are letting Aircraft rot on the runways. Seeing aircraft on the tarmac while you spent 5 minutes rolling past does not evidence poor business decisions.

 

 

Ah, the paint was peeling off of the aircraft.  Which indicates they been out for a long time.  Most airlines fly their unsued aircraft to a dry environment for long term storage.  Quantas sent serverl of their unsed jumbos to Victiorville CA for long term storage. I got to BKK several times a year and have seen these aircarft parked in the same area near the Thai Airways hangars  since 2023.  So I guess that is 5 minutes??  

I never said it was a "poor business decision".  You did. 

[greeneking]

9 hours ago, JoePai said:

Thai Airways has posted a remarkable turnaround

 

Agreed a rather too remarkable turnaround ??

Profit? This sum will make a small dent in the debts that are owed.

[Yagoda]

1 hour ago, sqwakvfr said:

Ah, the paint was peeling off of the aircraft.  Which indicates they been out for a long time.  Most airlines fly their unsued aircraft to a dry environment for long term storage.  Quantas sent serverl of their unsed jumbos to Victiorville CA for long term storage. I got to BKK several times a year and have seen these aircarft parked in the same area near the Thai Airways hangars  since 2023.  So I guess that is 5 minutes??  

I never said it was a "poor business decision".  You did. 

Whose aircraft are they? Not that whats painted on the side I reckon. Take notes of the numbers do you?

[TedG]

That's good. I hope the profits are used to clean the interiors of the airplanes and work towards on-time flights. 

[sqwakvfr]

10 hours ago, Yagoda said:

Whose aircraft are they? Not that whats painted on the side I reckon. Take notes of the numbers do you?

Ah, "Thai Airways" was painted on the exterior.  But this could mean they were leased so possibly they are owned by a aircraft leasing companyb but in the end still on the books for Thai Airways.