Thai Airways Sells Fleet, Reports Q1 Revenue Growth

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THAI CEO Chai Eamsiri confirmed on May 12 that sales agreements have been finalized for all 18 aircraft. While paperwork for six of the aircraft has been completed, the remaining 12 are expected to be finalized shortly.

The sale of these aircraft has led to a non-cash impairment charge of 3.33 billion baht in THAI’s Q1 2024 financial results, significantly impacting the airline’s net profit for the quarter. Despite this, THAI’s active fleet has grown to 73 aircraft as of March 31, 2024, compared to 70 at the end of 2023. This expansion has allowed the airline to increase frequencies on high-demand routes, contributing to expected revenue growth in the coming quarters.

In Q1 2024, THAI reported a 10.7 percent increase in total revenue, reaching 45.9 billion baht, compared to the same period in 2023. This growth was driven by robust passenger traffic and higher yields, particularly on European, Australian, and Japanese routes.

However, total expenses for the quarter rose to 34.88 billion baht, marking a 22.5 percent increase from the same period last year. Factors contributing to this rise include higher production and traffic volumes, an increased number of flights and destinations, and higher passenger numbers. The depreciation of the baht, along with higher ground handling fees and raw material prices, also contributed to the increase in expenses.

Specifically, losses from foreign exchange rate fluctuations amounted to 5 billion baht, while impairments of aircraft and right-of-use assets, as well as revolving aviation equipment, exceeded 3 billion baht. These factors combined resulted in a net profit of only 2.42 billion baht, marking an 80.7 percent decrease from the same period last year.

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