Thai Airways International posts net profit in Q4 2015

[webfact]

Thai Airways International Posts Net Profit in Q4 2015
BY JACOB MASLOW



BANGKOK: -- Thai Airways International (THAI) struggled greatly in 2015, narrowly missing a record loss for the year. The company posted a net profit for the months of October through December, which was spurred thanks to enhanced efficiencies and massive cost cuts.

The airline posted a profit of Bt4 billion, marking a Bt14 billion loss on the year. In 2014, the company posted a loss of Bt15.6 billion. The company’s net loss after nine months of operation in 2015 reached Bt18.1 billion in 2015. The announcement came ahead of the company’s operating results which will be discussed among the board on February 29th.

A source close to the company stated, “The results indicate that THAI is on the right track to profitability.”

Full story: https://ethailand.com/business-news/thai-airways-international-posts-net-profit-in-q4-2015/1605/

-- eThailand 2016-02-23

[MaiChai]

Trying to work out thè maths here. How does a 14 billion loss become a 4 billion profit? No wonder they are having problems!

[Thechook]

Qantas also just report a rise of 248% in profits to 688 million AUD. Air travel must be booming at the moment.

[PaullyW]

Trying to work out thè maths here. How does a 14 billion loss become a 4 billion profit? No wonder they are having problems!

From the link, it looks like they are flying a bit lighter to save on fuel costs, potentially sold some old planes and increased their load factor to almost 75% which would be fairly good if true.

Not sure how the first one is achieved though. Perhaps change the baggage allowances or associated fees?

But, most of all, one wonders if there are other unreported things going on in the numbers. Perhaps some pruning of executives or even better yet a more favorable accountant..

[apetley]

Trying to work out thè maths here. How does a 14 billion loss become a 4 billion profit? No wonder they are having problems!

My take is that for the whole year they lost 14 billion. They made 4 billion during the last 3 months. Without that the loss would have been 18 billion.

Disclaimer.....I'm not an accountant

[naboo]

My take is the pigs were warned that the trough would be taken away if they carried on eating too much.

[pomchop]

Meanwhile in USA airlines making massive profits.....

......the record earnings the industry is reporting. American Airlines, for example, reported an astounding $6.3 billion profit last year, up 50 percent from 2014. Overall, the domestic airline industry is expected to rake in a record $19.2 billion in profits, thanks to lower fuel prices and reduced competitor as the result of several mergers

[ExpatOilWorker]

I use to be a die hard loyal Thai Airways customers, mainly because I got a company provided ticket and only had to pay for my wife and kid out of pocket. This year the math broke down and I am done flying with Thai.

Thai Airways: 1 pax + infant = 48,000 baht

Emirates: 2 pax + infant = 41,300 baht

Dubai here we come!

[realenglish1]

This has very little to do with their so called cost cutting and everything to do with Low Fuel prices Case in Point

You can fly BKK To Lax for under $1000 2 years ago it was $1800

Increased ridership on every airline Has nothing to do with TAW

They still posting a year to year loss Things will never amaze me

[Prbkk]

My take is the pigs were warned that the trough would be taken away if they carried on eating too much.

Don't know about that: there is a report on one of the travel blogs about a customer in Thai First Class complaining.Another passenger in the cabin kept having her kids brought up to the First section by "the nanny" to engage in noisy activities and the first class food. The hiso sense of entitlement and the DYKWIA attitude remain in play.

[Prbkk]

Qantas also just report a rise of 248% in profits to 688 million AUD. Air travel must be booming at the moment.

And they are about to 'enhance' the frequent flyer program. That word makes me nervous when used by QANTAS. At least Thai had the sense to leave theirs as is, at least for this year.

[gandalf12]

Trying to work out thè maths here. How does a 14 billion loss become a 4 billion profit? No wonder they are having problems!

Just multiply by -1

[ExpatOilWorker]

"Efforts will be made to reduce maintenance costs and the aircraft sales plan will be tweaked to comply with the company's business needs."

Not sure if that is the right area to safe cost. Accidents are bad for business.

[oldsailor35]

Trying to work out thè maths here. How does a 14 billion loss become a 4 billion profit? No wonder they are having problems!

From the link, it looks like they are flying a bit lighter to save on fuel costs, potentially sold some old planes and increased their load factor to almost 75% which would be fairly good if true.

Not sure how the first one is achieved though. Perhaps change the baggage allowances or associated fees?

But, most of all, one wonders if there are other unreported things going on in the numbers. Perhaps some pruning of executives or even better yet a more favorable accountant..

And maybe a reduction in the allocation of free seats to every man and his dog, if one knows someone in the right position in Thai Air.

[oldsailor35]

I use to be a die hard loyal Thai Airways customers, mainly because I got a company provided ticket and only had to pay for my wife and kid out of pocket. This year the math broke down and I am done flying with Thai.

Thai Airways: 1 pax + infant = 48,000 baht

Emirates: 2 pax + infant = 41,300 baht

Dubai here we come!

I too used to be a frequent flyer with Thai Air until i discovered how exorbitant their ticket rates are compared with other airlines. EG QANTAS Ret BKK-Bris Bht 24.158 THAI Bht 38.270 Economy class.

[naboo]

Just did a random search, May - June two week trip to London, return. Direct flights only. Pay 50% more with Thai compared to British Airways, for what exactly? What exactly do you get for your 12,000B extra?

With a stop, you can see on the left, only 20,000B with KLM vs the 36,000B with Thai.

[ExpatOilWorker]

Just did a random search, May - June two week trip to London, return. Direct flights only. Pay 50% more with Thai compared to British Airways, for what exactly? What exactly do you get for your 12,000B extra?

With a stop, you can see on the left, only 20,000B with KLM vs the 36,000B with Thai.

British Airways vs Thai.png

Try do the LHR-BKK-LHR search. The result might come up in Thai Airways favor. Something to do with home base airline.

[naboo]

Just did a random search, May - June two week trip to London, return. Direct flights only. Pay 50% more with Thai compared to British Airways, for what exactly? What exactly do you get for your 12,000B extra?

With a stop, you can see on the left, only 20,000B with KLM vs the 36,000B with Thai.

British Airways vs Thai.png

Try do the LHR-BKK-LHR search. The result might come up in Thai Airways favor. Something to do with home base airline.

You're right, 386B cheaper with Thai Air that way than British Airways. I'd still go with British Airways though, for 386B saving I'm not risking the safety. So Thai just have no interest in attracting customers based in Thailand.

edit: If you look closely, if you book direct with the airlines, British Airways comes out cheaper!