THAI on course for record profit
Credit: Bangkok Post (http://www.bangkokpost.com)
Thai Airways International (THAI) is poised to post a record annual net profit in 2010 with earnings of over 10 billion baht.
Chairman Ampon Kittiampon issued an upbeat outlook yesterday as the national carrier reported a turnaround in the third quarter, thanks to recovery in travel demand, cost-saving measures and the easing of local political tensions.
The company made a net profit of 136 million baht, or 0.08 baht a share, versus a loss of 4.03 billion (2.37 baht a share) in the same period last year.
"With the seasonal robust travel demand in the fourth quarter, I'm confident that we will be able to have a record profit in our 50-year history this year," Mr Ampon told reporters.
THAI has already earned more than 12 billion baht in the January-September period, so it will not be difficult to raise the bar further for the October-December period, he explained.
The airline achieved a cabin factor of 74.5% last month and has been able to continue to fill more than 70% of its seats so far this month, Dr Ampon added.However, the third-quarter earnings were much lower than the one-billion-baht projection by analysts.
The average cabin factor in the quarter was 74.7%, up from 73.9% in the previous period, with the freight load factor rising to 61.3% from 53.8%.
The third-quarter earnings could have been better if not for a loss of 2.77 billion baht on foreign exchange due to the depreciation of the baht against the euro.
For the first nine months of this year, THAI posted a net profit of 12.41 billion baht, or 7.25 baht a piece, versus a loss of 1.57 billion (0.92 baht per share) in the previous period.
Meanwhile, the THAI board yesterday deferred consideration of the creation of Thai Tiger Airways, a joint venture that would be owned 51% by THAI and 49% by the Singapore-based low cost carrier Tiger Airways.
Dr Ampon said there was not enough time for board members to go through details including points of concern and legitimacy issues raised by the Transport Ministry.
Continuing to oppose the launch of Thai Tiger, the ministry has been raising issues, particularly on legal aspects, which are impeding the planned takeoff the new airline in March next year.
One of the issues raised by the ministry is whether THAI can draw money from the so-called "emergency" fund to facilitate the launch of the new airline, which will require an initial capital of 200 million baht.
The THAI chairman said the board would hold a special meeting next Friday to deliberate only the Thai Tiger plan, so that all the issues can be cleared.
THAI has commissioned L.E.K. Consulting Co to draw up a business plan for the new budget airline that includes eight routes using five Airbus 320s leased from Tiger Airways.
Dr Ampon and president Piyasvasti Amranand have been adamant that they want to see Thai Tiger get off the ground as part of THAI's strategy to recoup traffic lost to budget airlines such as AirAsia, Southeast Asia's largest low-cost carrier.
THAI shares closed yesterday on the SET at 46 baht, down one baht, in trade worth 720.82 million baht.
Credit: Bangkok Post (http://www.bangkokpost.com)
Credit: Bangkok Post (http://www.bangkokpost.com)
Thai Airways International (THAI) is poised to post a record annual net profit in 2010 with earnings of over 10 billion baht.
Chairman Ampon Kittiampon issued an upbeat outlook yesterday as the national carrier reported a turnaround in the third quarter, thanks to recovery in travel demand, cost-saving measures and the easing of local political tensions.
The company made a net profit of 136 million baht, or 0.08 baht a share, versus a loss of 4.03 billion (2.37 baht a share) in the same period last year.
"With the seasonal robust travel demand in the fourth quarter, I'm confident that we will be able to have a record profit in our 50-year history this year," Mr Ampon told reporters.
THAI has already earned more than 12 billion baht in the January-September period, so it will not be difficult to raise the bar further for the October-December period, he explained.
The airline achieved a cabin factor of 74.5% last month and has been able to continue to fill more than 70% of its seats so far this month, Dr Ampon added.However, the third-quarter earnings were much lower than the one-billion-baht projection by analysts.
The average cabin factor in the quarter was 74.7%, up from 73.9% in the previous period, with the freight load factor rising to 61.3% from 53.8%.
The third-quarter earnings could have been better if not for a loss of 2.77 billion baht on foreign exchange due to the depreciation of the baht against the euro.
For the first nine months of this year, THAI posted a net profit of 12.41 billion baht, or 7.25 baht a piece, versus a loss of 1.57 billion (0.92 baht per share) in the previous period.
Meanwhile, the THAI board yesterday deferred consideration of the creation of Thai Tiger Airways, a joint venture that would be owned 51% by THAI and 49% by the Singapore-based low cost carrier Tiger Airways.
Dr Ampon said there was not enough time for board members to go through details including points of concern and legitimacy issues raised by the Transport Ministry.
Continuing to oppose the launch of Thai Tiger, the ministry has been raising issues, particularly on legal aspects, which are impeding the planned takeoff the new airline in March next year.
One of the issues raised by the ministry is whether THAI can draw money from the so-called "emergency" fund to facilitate the launch of the new airline, which will require an initial capital of 200 million baht.
The THAI chairman said the board would hold a special meeting next Friday to deliberate only the Thai Tiger plan, so that all the issues can be cleared.
THAI has commissioned L.E.K. Consulting Co to draw up a business plan for the new budget airline that includes eight routes using five Airbus 320s leased from Tiger Airways.
Dr Ampon and president Piyasvasti Amranand have been adamant that they want to see Thai Tiger get off the ground as part of THAI's strategy to recoup traffic lost to budget airlines such as AirAsia, Southeast Asia's largest low-cost carrier.
THAI shares closed yesterday on the SET at 46 baht, down one baht, in trade worth 720.82 million baht.
Credit: Bangkok Post (http://www.bangkokpost.com)
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