THAI AIRWAYS International (THAI) posted a net loss of Bt10.2 billion in the second quarter, main- ly due to low yield and high operat- ing costs THAI president Charamporn Jotikasthira said yesterday that the airline might not achieve its rev- enue target of Bt180 billion this year. He also said it would be unable to meet its plan to cut costs by Bt10 billion in 2015. In the first half, the national carrier failed to cut costs at all, but still hopes it can cut Bt5 bil- lion during the rest of the year. He said major losses in the sec- ond quarter came from aircraft depreciation, early-retirement pro- grammes, operating costs and other expenses. During the first six months, the number of passengers 18 per cent, but average yield dropped by more than 10 per cent from the same period last year. Furthermore, in the second
quarter the average load factor was only 60 percent, though it increased to 77 per cent in July and 80 percent so far this month. As a result, Charamporn said the airline would lower its load-factor projection for this year from the ini- tial forecast of 85 per cent to 76 per cent. The revised forecast will still be higher than the 71 per cent seen last year. To gain more passengers, the airline plans to open several new routes to China, which has become one the top four markets for THAI Narongchai Wongthanavimok, the airline's executive vice president and chief financial officer, said the company had been considering sell- ing properties in Thailand andover seas, particularly offices and staff residences, and divesting shares in other business. Properties to besold could be worth up to Bt10 billion Details the plan will soon reach the board ofdirectors for consider- ation Last year, the airline sold 10 old aircraft as part of its cost-cutting plans. So far this year, it has sold another 17 planes. It is placing 21
aircraft on the market for sale. Meanwhile yesterday, Asia Aviation, major shareholder of Thai AirAsia, said its earnings for the sec- ond quarter were Bt6.8 billion, up 26 per cent year on year. Net profit was Bt374 million, reversing losses from the same period of last year on the back of higher average fare
income due to greater demand and lower average fuel costs. In the first half, revenue was Bt14.6 billion and net profit Bt1.2 billion. Bangkok Airways yesterday reported that its revenuein first half was Bt12.2 billion, up 12 per cent from Bt10.9 billion in the first six months of last year