Fuel Price Hike Takes Toll On THAI Revenue In Q1

Fuel Price Hike Takes Toll on THAI Revenue in Q1

Thai Airways has admitted that its earnings for the first quarter of the year may be affected by the rising fuel prices due to the ongoing political crisis in the Middle East.

The company is considering raising the fuel surcharge.

Thai Airways International or Thai President Piyasawat Amaranand said that he expects the company's earnings in the first quarter of the year to be affected by the rising fuel prices.

Oil prices have spiked because of the ongoing political crisis in Libya.

While Libya is a minor oil exporter, investors fear that the conflict may spill over to other oil producing countries in the region.

Oil prices is now approaching 130 U.S. dollars per barrel.

THAI is considering raising its fuel surcharge once again, after a recent increase in February.

However, Piyasawat believes the company's revenue will bounce back in the second quarter, despite political uncertainty domestically and abroad.

The THAI president also discussed the company's controversial policy on the appearance of its flight attendants.

Female flight attendants are required to have a body mass index, or BMI, below 25 and a waistline below 32 inches, while male flight attendants are to have a BMI less than 27.5 and a waistline smaller than 35 inches.

Piyasawat said that it is a necessary measure to upgrade service and employee health.

Piyasawat added that flight attendants must be prepared for any possible emergency situation, and excessive body weight could hinder the effectiveness of their performance.

He pointed out that only about 40 out of 6,000 employees have filed complaints about this new policy, which he believes will help upgrade the standard of the national carrier.

Regarding the joint venture to form Thai Tiger Airways, a low cost carrier, Piyasawat announced that the introduction of the new carrier may be delayed from the original schedule set for April of this year, pending funding approval by the Transport Ministry and the National Economic and Social Development Board.

The THAI president also introduced a simple online reservation system for mobile devices.

Passengers can check flight schedules, ticket prices, and track mileage points on the new mobile application.

-- Tan Network 2011-03-03