Thai Airways Expects To Earn Bt700M In Profits This Year

[webfact]

Thai Airways expects to earn Bt700m in profits this year

Bamrung Amnatcharoenrit

The Nation

BANGKOK: -- Thai Airways International expects to report net profit of Bt700 million this year, which is below its previous projections.

However, the national carrier is satisfied with its result at a time of uncertain outlook for the aviation industry.

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Last year, THAI posted a Bt10-billion loss.

THAI president Sorajak Kasemsuvan said, however, that the business outlook remained good for next year. In the last quarter of this year, its cabin factor has been 76 per cent, better than the expected 75 per cent.

The firm attributed its growth to the high cabin factor in the final quarter of this year, driven by the good performance of Thai tourism. Also, the new Bangkok-Sapporo route has seen more than 80-per-cent booking.

Between December 28 and January 3, the airline will add 26 flights to serve the rising demand for travel during the New Year season, carrying more than 7,000 passengers. They comprise 20 flights to provinces at home and six to cities in Japan, taking off from Bangkok.

In November, the number of passengers increased 39.6 per cent year on year to 1.87 million, while cabin factor was 76.7 per cent, up from 61 per cent during the same month last year. Thai Smile's cabin factor averaged 84.2 per cent.

Sorajak will today discuss with the company's board next year's business strategy.

Also, he will map out his own plan before proposing it to the board by the end of this month. He insisted that the company would maintain its sales target of growing at least 12 per cent to Bt200 billion in 2013.

In addition, next year the firm will put more focus on improving the seating quality of 12 A330-300 aircraft, which are 14 years old, to the same standard as the whole fleet.

The proposal will be put to the company's board next month, which will include study results and budget details.

Currently, THAI has 91 aircraft in its fleet, with an average age of 10 years. It intends to reduce the average age to eight years in 2017 by adding new aircraft.

Under the plan, the firm will purchase 75 new aircraft; 37 have already been approved for purchase, while for the remaining 38, it will reconsider the purchase plan.

-- The Nation 2012-12-15

[canopus1969]

I expect to earn 5m Baht this year but I think both Thai and myself will fail

[Ricardo]

Sales-revenue growth targetting 12% next year, even with the new Thai-Smile planes gradually arriving, I'd advise bracing for price-hikes !

And 75% load-factor shows what the customers already think, about TG's pricing and value-for-money.

[Thai at Heart]

Sales-revenue growth targetting 12% next year, even with the new Thai-Smile planes gradually arriving, I'd advise bracing for price-hikes !

And 75% load-factor shows what the customers already think, about TG's pricing and value-for-money.

and with 10 percent hangars on on all flights it is not a pretty stat at all.

[WilliaminBKK]

TG's 75% load factor is actually very good given the industry and given the fact the domestic network could fit on a postage stamp with major LCC competition, short routes in a leisure market are very difficult to monetise year round. Thai Smile will have little impact except major savings on rotations of older aircraft that can be better utilised.

12% increase in revenue will be come from pro-rates from Star carriers especially on the FRA/NRT/SYD routes, no need to hit the panic button that fares will increase on point to point. TG's ASK's & RPK's are also improving to almost the same levels as BA/LH.

Now that they right-sized the US market I see a much better future for TG.

Edit: I forgot the point of the article the 6B to 3B to 700m is the aircraft retro fit programme being fast tracked, Thai Smile, LAX flight via SEL is under performing for obvious reasons.

Edited December 15, 2012 by WilliaminBKK

[Payboy]

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Downward revision from Bt 6 billion to Bt 3 billion to Bt 700 million and it's not in the bag yet. Those business forecasters at Thai must be 3 year olds.

[AleG]

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Downward revision from Bt 6 billion to Bt 3 billion to Bt 700 million and it's not in the bag yet. Those business forecasters at Thai must be 3 year olds.

I wonder what was their profits prediction for last year.

Last year, THAI posted a Bt10-billion loss.

[drdoom6996]

I flew Thai 4 times this year with deplorable service. I will not fly them again unless absolutely necessary. They must be the joke of all the SE Asia airlines at this point in time.

[Payboy]

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Downward revision from Bt 6 billion to Bt 3 billion to Bt 700 million and it's not in the bag yet. Those business forecasters at Thai must be 3 year olds.

I wonder what was their profits prediction for last year.

Last year, THAI posted a Bt10-billion loss.

Must've been way off the mark, considering the forecasters were just 2 years old then.

[sport]

I flew Thai 4 times this year with deplorable service. I will not fly them again unless absolutely necessary. They must be the joke of all the SE Asia airlines at this point in time.

drdoom6996

Would you care to expand on the “deplorable service”?

[bigbamboo]

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Downward revision from Bt 6 billion to Bt 3 billion to Bt 700 million and it's not in the bag yet. Those business forecasters at Thai must be 3 year olds.

Plenty of time for a further cut yet!

700 satang perhaps?

[nong38]

None of it will be with my help or money, they are far too expensive! No doubt the profit and books will look good, moving the money around from Govt department to department.

[DoctorG]

Early this year, it had projected earnings of Bt6 billion but cut the figure by half to Bt3 billion midyear.

Downward revision from Bt 6 billion to Bt 3 billion to Bt 700 million and it's not in the bag yet. Those business forecasters at Thai must be 3 year olds.

6/3 B is earnings

700M is profit

[tomross46]

Creative accounting?

[goatfarmer]

Stock price looks like it's bottoming. Transport sector is one of my favourite picks for next year.

[mancub]

TG's 75% load factor is actually very good given the industry and given the fact the domestic network could fit on a postage stamp with major LCC competition, short routes in a leisure market are very difficult to monetise year round. Thai Smile will have little impact except major savings on rotations of older aircraft that can be better utilised.

12% increase in revenue will be come from pro-rates from Star carriers especially on the FRA/NRT/SYD routes, no need to hit the panic button that fares will increase on point to point. TG's ASK's & RPK's are also improving to almost the same levels as BA/LH.

Now that they right-sized the US market I see a much better future for TG.

Edit: I forgot the point of the article the 6B to 3B to 700m is the aircraft retro fit programme being fast tracked, Thai Smile, LAX flight via SEL is under performing for obvious reasons.

Seems like the reporter also forgot the point of his article , in that case !

[kinmaew]

Poor result for such an established international business, what the hell are they doing? or not doing?

Get a foreigner to run the business and your profits will jump, because all the dead wood would be removed. But we all know hell will freeze over sooner than hire a farang.

Continue as you are Thai airways, would never invest a cent in that company, my money stays in well run businesses with transparency and open employment policies.

[Dork]

Poor result for such an established international business, what the hell are they doing? or not doing?

Get a foreigner to run the business and your profits will jump, because all the dead wood would be removed. But we all know hell will freeze over sooner than hire a farang.

Continue as you are Thai airways, would never invest a cent in that company, my money stays in well run businesses with transparency and open employment policies.

Right, just like all those highly profitable national airlines in Europe and major carriers in the USA.

Edited December 17, 2012 by Dork

[rubl]

Thai Airways International expects to report net profit of Bt700 million this year, which is below its previous projections.

I always have problems reading and understand this type of financial data.

2012-08-15

"In the second quarter of 2012, THAI's consolidated loss totaled THB 1,458 million. Loss attributed to owners of the parent (net loss) was THB 1,526 million or THB 0.70 per share. The net loss decreased when compared to last year's THB 7,874 million or THB 3.61 per share loss. EBITDAR was THB 4,439 million, which increased by THB 2,944 million or 196.9% from last year.

Operating results of THAI and its subsidiaries for the first six months of 2012 (January – June 2012) indicated profit for the period at a total of THB 2,210 million. Profit attributed to owners of the parent amounted to THB 2,118 million or THB 0.97 per share compared to last year's loss of THB 7,256 million or THB 3.32 per share.

"

http://www.asiatrave...aiAirways.shtml

2012-11-15

"During the third quarter of 2012, THAI's consolidated profit totaled THB 1,868 million. Profit attributable to owners of the parent was THB 1,750 million or 0.80 baht per share. Net profit decreased compared to last year's THB 2,447 million or 1.12 baht per share. EBITDAR was THB 8,622 million, which increased by THB 1,763 million or 25.7 percent over last year."

http://www.prthaiair...s/node/437.html

[slapout]

Wonder if the hefty fine is taken into account for projected profit?

[chotthee]

I'll rather fly any low cost airlines than THAI.

[Brown1950]

Have used many airlines over the last 30 years some good some bad so recently went business class with Thai Airways Bangkok-Chiang Mai. Flight to Chiang Mai was ok with B777 however for the return trip Thai operated a 747-400 which reminded me of UK/Spanish charter airlines from the 1970's (ie) Dan Air and Spantax. Never again !

[yoshiwara]

I'll rather fly any low cost airlines than THAI.

That is just silly.

[kimamey]

I flew Thai 4 times this year with deplorable service. I will not fly them again unless absolutely necessary. They must be the joke of all the SE Asia airlines at this point in time.

I've flown Thai from BKK to Khon Kaen twice this year and the service has been fine. Not that there's much can go wrong on a flight of about 50 minutes.

I did try to complete their customer survey but unfortunately it was compiled by an imbecile.

Amongst other things they wanted to know my top 5 favourite airlines for international flights. I've used 4 airlines to travel to Thailand one of which wasn't on their list. That leaves me 3 airlines from which I have to choose 5.

There was also my top 3 things about the flight. Well I used them because they fly to Khon Kaen and I didn't have to change airports which wasn't on their list. Most of the items were more relevant to international flights.

Then my top 3 things for them to improve which again were things like in flight entertainment which aren't relevant to domestic flights. They didn't list price which is the biggest problem.

Oh and after all my hours on planes, waiting in airports, going through endless security and crossing multiple time zones they wanted to know if my flight left on time. I hardly knew what day it was. They knew my flight. Surely they know if their flights leave on time.

Bloody idiots.