The Virus Outbreak Halts BA’s Operations in 2Q, Reporting a Net Loss of ฿2.97Bn!

Bangkok Airways Public Company Limited (BA) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

 

BA reported a net loss of 2,974 million baht in 2Q20, representing an additional contraction of 328% from its net loss of 693 million baht in 2Q19.

For the second quarter of the year 2020, BA suspended all flights since 7 April 2020 according to government orders as well as the announcement from the Civil Aviation Authority of Thailand (CAAT) regarding to COVID-19 spread out the situation. However, the company resumed domestic routes from Bangkok to Samui from 15 May 2020 and Bangkok to Chiang Mai, Bangkok to Sukhothai and Bangkok to Lampang starting from June 2020 which the routes and frequencies were arranged to match with travel demand. Consequently, the number of passengers slumped by 97.8% and load factor reported at 47.3%.

 

The operating revenue of BA for the second quarter of year 2019 and year 2020 was 5,645.9 million baht and 800.4 million baht respectively, decreased by 85.8% while total expenses decreased from 6,607.4 million baht to 3,705.5 million baht or around 43.9%.

 

For the second quarter and six-month of the year 2020, total expenses were 3,705.5 million baht and 10,274.3 million baht respectively, dropped by 43.9% and 24.0% from the same period last year. The lower amount of expenses was mainly comprised of fuel costs that declined from less fuel consumption and lower fuel price, together with expenses related to flight operation such as flight pay, aircraft maintenance, landing and parking fee and passenger services.

Nevertheless, for the second quarter of the year 2020, the company has implemented a voluntary resignation program amounting at 583.0 million baht. Additionally, the company reported a loss from derivative transactions at 747.1 million baht and 1,477.4 million baht respectively from the same period last year.