THAI Reports Operational Performance Results for the Second Quarter of 2023

In the second quarter of 2023, Thai Airways International Public Company Limited (THAI) and its subsidiaries reported the total revenue, excluding one-time transactions, at 37,381 million baht, higher than the same period last year which was 21,526 million baht, or 73.7% but 9.9% lower than Q1/2023 because Q2 usually has the lowest travel rate of the year.  THAI increased flight frequencies in preferred routes such as destinations in Japan and China with a total of 3.35 million passengers.  An average cabin factor was 79.2%, higher than the same period last year’s 60.3%.

THAI and its subsidiaries reported the total expenses, excluding one-time transactions, at 28,805 million baht, higher than the previous year which was 22,825 million baht due to an increase in variable costs.  THAI and its subsidiaries reported the operating profit, before financial costs and excluding one-time transactions, at 8,576 million baht, improved from that in Q2/2022 which reported the operating loss at 1,299 million baht.  The operating profit of Q2/2023 is the highest that THAI and its subsidiaries have made in the same period in 20 years.  THAI and its subsidiaries’ financial costs, according to Financial Reporting Standard No. 9 (TFRS 9), was 3,967 million baht.  THAI and its subsidiaries had one-time items mainly due to loss on foreign exchange rates resulting total expenses of 2,643 million baht.  Consequently, THAI and its subsidiaries reported a net profit of 2,273 million baht while in the same period last year, it was reported a net loss of 3,213 million baht.  Profit attributable to the parent company was 2,262 million baht.  Earnings before interest, tax, depreciation and amortization (EBITDA) after cash paid for aircraft lease payment including Power by the Hour amounted to 9,307 million baht.  

In the first six months of 2023, THAI and its subsidiaries reported the total revenue, excluding one-time transactions, at 78,889 million baht, higher than the same period last year which was 32,706 million baht, while the total expenses, excluding one-time transactions, at 57,280 million baht, higher than the previous year which was 37,175 million baht.  THAI and its subsidiaries reported the operating profit, before financial costs and excluding one-time transactions, at 21,609 million baht, improved from the same period in 2022 which reported the operating loss at 4,469 million baht.  THAI and its subsidiaries’ financial costs, according to Financial Reporting Standard No. 9 (TFRS 9), was 7,515 million baht.  THAI and its subsidiaries had one-time items mainly due to profit from debt restructuring resulting total revenue of 344 million baht.  Consequently, THAI and its subsidiaries reported a net profit of 14,795 million baht while in the same period last year, it was reported a net loss of 6,457 million baht.  Profit attributable to the parent company was 14,776 million baht.  Earnings before interest, tax, depreciation and amortization (EBITDA) after cash paid for aircraft lease payment including Power by the Hour amounted to 23,361 million baht.  

Currently, THAI and its subsidiaries have a total of 67 active aircraft consisting of 20 narrow-bodied aircraft and 47 wide-bodied aircraft.  In Q2, THAI took deliveries of two operating lease wide-bodied aircraft.  During the first six months of 2023, the average aircraft utilization of THAI and its subsidiaries was 12.0 hours per day while THAI average aircraft utilization was 14.0 hours per day.  Traffic production (ASK) increased by 76.9% while passenger traffic (RPK) increased by 192.8% affecting an average cabin factor of 81.4%, higher than the previous year's 49.2%. The total number of passengers carried was 6.87 million, an increase of 126.7%.   

As of 30 June 2023, total assets were 223,318 million baht, an increase of 25,140 million baht (12.7%) from 31 December 2022.  Total liabilities were 279,571 million baht, an increase of 10,369 million baht (3.9%) from 31 December 2022. The shareholders' equity of THAI and its subsidiaries amounted to -56,253 million baht, a negative decrease from 31 December 2022, by 14,771 million baht.  From the positive operational performance results, as of 30 June 2023, cash and cash equivalent totalled 51,153 million baht, which is 16,613 million baht higher than that on 31 December 2022.

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