High Expenses and Operating Loss Sink THAI to Face 4 Times Higher of Deficit

Thai Airways International Public Company Limited (THAI) has reported its consolidated financial statement 2018 through the Stock Exchange of Thailand as follows:

THAI’s total revenues in 2018 were THB 199,500 million, increased by THB 7,554 million or 3.9% from all sorts of revenue including passenger and excess baggage revenue, freight and mail revenue, revenue from other activities, and other income.

THAI also reported an operating loss of THB 9,058 million in 2018, compared to THB 2,856 million profit of last year due to fierce competition, the unpredictable high fuel prices, the decreasing adjustment of estimated residual value of aircraft and spare engines and high operating expenses.

Total expenses was THB 208,558 million, increased by THB 19,468 million (10.3%) resulting from the increase of fuel expenses by THB 9,881 million (19.7%) from the rising average fuel price which increased significantly by 30.1%

THAI had impairment loss of assets and aircraft, amount of THB 3,459 million. Depreciation and amortization totaled THB 19,045 million, increased by THB 2,023 million (11.9%) due to the new residual value of aircraft and spare engine.

Meanwhile, the company gained THB 911 million from foreign currency exchange mainly from loan revaluation.

Thus, THAI reported the net loss of THB 11,625 million in 2018, decreased almost five times when compared to the loss in 2017.