Thai Airways Q2 loss narrows as fuel expenses drop
Thai Airways International Plc cut its losses for the second quarter, helped by a decline in fuel expenses and gains from an ongoing restructuring programme at the flag carrier.
The state-controlled carrier made a net loss of 2.92 billion baht for the April-June quarter, versus a 12.8 billion baht loss a year earlier. That compared with the average loss estimate of 2.1 billion baht, according to three analysts surveyed by Reuters.
THAI is one of several state-controlled companies undergoing reform in the Southeast Asian nation since the military seized power in May 2014.
It returned to a profit in the fourth quarter of 2015, shrinking its full-year loss as a restructuring that reduced operating costs and boosted passenger revenues bore fruit.
The carrier said in a statement the aviation industry is expected to grow slightly in the second half. The second phase of the restructuring launched earlier this year targets boosting revenue and lowering costs at the airline, it said.
THAI posted an operating loss of 1.78 billion baht for the second quarter, down 62%, while fuel expenses dropped 21.3% as a result of falling prices of jet fuel, it said.
Its passenger yield, a gauge of pricing, was stable at 2.38 baht, while it carried 5.11 million passengers in the quarter, almost flat from the year ago.
The airline booked an impairment loss on assets and aircraft of 1.75 billion baht due to additional provision for decommissioning aircraft which were held for sales, it said.
THAI shares have risen 123% over the past 12 months, outperforming a 10% gain in the main index.