MCT/Bangkok

 

All SET-listed airlines took a hit from Thailand’s political turmoil, racking up losses in the second quarter.

Ailing national flag carrier Thai Airways International (THAI) was the biggest loser among all at 7.66bn baht for the April-June period.

Budget carriers Nok Airlines and Asia Aviation(AAV), the latter the major stakeholder in Thai AirAsia, posted losses of 159mn baht and 176mn baht, respectively.

The trio singled out the months of street protests that helped lead to the ouster of prime minister Yingluck Shinawatra on May 22 for curtailing passenger traffic.

They also blamed fierce competition among full-service and discount airlines for causing the downturn in their second quarter performances.

In its filing to the bourse, THAI cited a drop in foreign arrivals at Suvarnabhumi and Don Mueang airports of 22.6% year-on-year in the second
quarter.

THAI’s second quarter negative result raised its combined losses for the first half of this year to 10.3bn baht. But the second quarter loss was smaller than the 8.43bn baht recorded in the same period last year.

A foreign exchange gain of 1bn baht in the second quarter cushioned some losses at THAI.

The airline reported foreign exchange losses of 4.2bn baht with impairment of assets involving Airbus A300-600 jets amounting to 1.21bn baht added to losses in the second quarter of last year.

THAI’s revenue in this year’s second quarter fell by 9.2% to 42.8bn baht due to the heavy drop in passenger numbers and excess-baggage revenue.

The second quarter marked a reversal of fortune for Nok Air and AAV, which in the same period last year posted net profits of 260mn baht and 264mn baht, respectively.

This came even though both posted higher revenue in this year’s period up by 2% to 5.46bn baht for AAV and 8.1% to 2.83mn for Nok Air.

AAV’s Thai AirAsia increased passenger volume by 16% to 2.8mn and Nok Air 23.4% to 1.72mn. But both filled fewer available seats, which increased due to additional capacity, frequencies and routes.

Thai AirAsia’s second quarter passenger load factor declined to 78% from 82% in the same period last year and Nok Air’s to 77.7% from 86.5%.

 

A Thai Airways aircraft takes off from the Bangkok International Airport. The ailing national flag carrier lost 7.66bn baht in the second quarter of this year due to the political turmoil in Thailand.

 

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