BANGKOK: Thai Airways International has reported a narrower net loss for the third quarter, helped by lower fuel prices and operating costs from its current restructuring programme. The national carrier told the Stock Exchange of Thailand on Friday that it lost 1.6 billion baht for the July-September quarter versus a loss of 9.9 billion baht in the same period a year earlier. Forecasts by analysts had ranged from a profit of 311 million baht to a loss of 550 million for the quarter.
THAI said it had an operating loss in the quarter of 836 million baht, improved from a loss of 3.4 billion baht a year earlier as fuel expenses dropped 33.6% and the number of passengers rose 7.6% to 5.5 million. It also booked an impairment loss on assets and aircraft of 624 million baht for the quarter, but recorded gains of 120 million baht from foreign exchange, it said. The airline is considering expanding some international services after scaled-down operations in the past two years. A restructuring carried out over the past year has included cutting unprofitable routes and reducing operating costs.
Analysts expect the airline to book a profit in the fourth quarter thanks to the high travel season and low fuel prices. Earlier on Friday, Nok Airlines, the budget unit of THAI, reported a net loss of 959 million baht, versus a loss of 424 million a year earlier, due to lower-than-expected revenue growth and rising costs related to fleet expansion. Bangkok Airways posted a 14% increase in third-quarter net profit due to rising passenger numbers and revenues after opening new routes and increasing flight frequency in July. THAI shares closed on Friday on the SET at 26.75 baht, down 25 satang, on turnover worth 297 million baht.
