BANGKOK,14th August 2019 (NNT) - Thai Airways reports the loss of 6.8 billion in the second quarter of 2019
Thai Airways has sent a filing to the Stock Exchange of Thailand, reporting a net loss of 6.8 billion baht in the second quarter of 2019, equaling 122% compared to last year, while its year-on-year revenue decreased by 10%.
Mr. Sumeth Damrongchaitham, The airline’s President, said the factors include the strongest Thai baht in 7 years, leading to a difficult competitive environment due to its inability to reduce the ticket price. The 5% increase in the value of the Thai baht since beginning of the year also cost the national carrier lose 5%
Additionally, the airline’s revenue is affected by the conflict between India and Pakistan, which means the airline lost a number of Pakistani passengers, reducing number of Chinese tourists due to the Yuan appreciation compared to Thai baht, reflecting a change of destination choice from Thailand to other countries such as Japan, South Korea and Vietnam.
For external factors, Mr. Sumeth blamed the 12 aircraft grounded for maintenance, which leads to a decrease in the number of flights.
However, the Airline plans to open a new route to Sendai city in Japan, as the Japanese market accounts for one third of the total revenue of the carrier.