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Thai Airways Plans Important Steps In Financial Restructuring

Thai Airways A350-900
Credit: Joe Pries

Thai Airways reported a reduced net profit in the second quarter (Q2), as the carrier targets the completion of its capital restructuring process.

The airline is preparing a registration statement to sell securities and a draft prospectus for Thailand’s Securities and Exchange Commission, Thai Airways said in its latest earnings report. The carrier expects to complete a debt-to-equity conversion and a new share offering by the end of 2024.

Such steps will allow the company to have “positive shareholder equity” in its 2024 annual financial statements, one of the conditions of a successful rehabilitation program, Thai said. This will mean the carrier’s securities can resume trading on the stock exchange.

The attributable net profit for Thai and its subsidiaries sank to THB306 million ($8.7 million) in Q2, down from a profit of THB2.3 billion in the same period last year. Thai’s total Q2 revenue was up 17.7% year-over-year to THB44 billion, with passenger revenue improving by 15.9%. However, the stronger revenue was offset by a 32.1% increase in operating costs.

Overall tourist numbers to Thailand are expected to be up 25.9% to 35.5 million in 2024, the carrier said. One factor in the increase is the expansion of Thailand’s visa exemption initiative from 57 to 93 countries, introduced on July 15.

Thai plans to add two more Airbus A330-300s around November, and the airline will begin a cabin retrofit on its A320s in the fourth quarter. Thai and its subsidiaries—including Thai Smile—had 77 active aircraft as of June 30, in addition to one non-operational and 21 decommissioned for sale.

The carrier recently placed an order for 45 Boeing 787s for delivery between 2027 and 2033, for replacement and growth. Thai plans to have a fleet of 96 aircraft by 2033, or 131 if an additional 35 787 options are exercised.

Adrian Schofield

Adrian is a senior air transport editor for Aviation Week, based in New Zealand. He covers commercial aviation in the Asia-Pacific region.