Thai Airways reported a loss of 3.686 billion baht in the third quarter, impacted by natural disasters in Japan, a decline in Chinese tourists, and a more than 40% increase in global oil prices.

          Mr. Sumeth Damrongchaitham, President of Thai Airways International Public Co., Ltd., revealed that in the third quarter of 2018, the company and its subsidiaries had total revenue of 47.953 billion baht, an increase of 2.2% compared to the same quarter last year. However, the company still recorded a net loss of 3.686 billion baht, partly due to the impact of natural disasters in Japan and a decrease in the number of Chinese tourists. Additionally, the rise in global oil prices by over 40% has increased operational costs.

          The company has retired two Boeing 737-400 aircraft, resulting in a total of 103 operational aircraft as of September 30, 2018, an increase of four from the same quarter last year. The aircraft utilization rate remained at 12.1 hours, the same as the previous year. Passenger production (ASK) increased by 2.0%, while passenger traffic (RPK) rose by 1.0%. The average cabin factor was 77.5%, lower than last year's average of 78.2%, with a total of 6.0 million passengers transported, similar to the previous year.

          For the performance of the company and its subsidiaries, total operating revenue was 47.953 billion baht, an increase of 1.025 billion baht or 2.2%. The details are as follows: revenue from passenger fares and excess baggage increased by 304 million baht or 0.8% due to increased transport volume; revenue from freight and postal services rose by 561 million baht or 10.9%; and revenue from other services increased by 360 million baht or 12.3%.

          However, the third quarter is typically off-peak for tourism, and competition in the aviation industry remains fierce. Coupled with rising global oil prices at a higher rate than in the first half of the year, this has led to decreased travel demand and increased costs. Additionally, natural disasters in September 2018, including Typhoon Jebi hitting Japan, caused damage to Kansai Airport, flooding the runway and temporarily closing services. An earthquake in Hokkaido and Typhoon Mangkhut affecting Hong Kong also forced the cancellation of several flights.

          Furthermore, the decline in Chinese tourists and increased expenses exceeding revenue growth resulted in total expenses rising by 5.259 billion baht or 11.3% compared to the same quarter last year. Fuel costs increased by 3.499 billion baht or 29.4% due to an average oil price increase of 41.0%, while operational expenses excluding fuel rose by 1.862 billion baht or 5.5%, primarily due to increased aircraft maintenance and leasing costs.

          The company also incurred one-time expenses from recognizing asset and aircraft impairment losses amounting to 371 million baht, but recorded a foreign exchange gain of 299 million baht, resulting in a net loss of 3.686 billion baht, which is 1.872 billion baht more than the previous year. The net loss attributable to the parent company was 3.701 billion baht, equating to a loss per share of 1.70 baht, which is 0.86 baht more than the previous year.

          As of September 30, 2018, the company and its subsidiaries had total assets of 277.607 billion baht, a decrease of 3.168 billion baht (1.1%) from December 31, 2017. Total liabilities amounted to 249.219 billion baht, an increase of 457 million baht (0.2%), and shareholders' equity was 28.388 billion baht, down 3.625 billion baht (11.3%) from December 31, 2017, partly due to the operational losses of the company and its subsidiaries in the first nine months of this year.

Nevertheless, the company continues to implement its organizational rehabilitation plan, focusing on increasing revenue and supplementary income while maintaining ongoing cost control measures.

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