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THAI books $368m net loss

Publication Date : 26-02-2014

 

Thai Airways International showed a net loss of 12 billion baht (US$368 million) in 2013, seriously hit by fierce competition and political turbulence in the fourth quarter. In the previous year, it reaped 6.23 billion baht in net profit.

The company’s share price was unchanged at noon, at 13 baht, while the composite SET index was 0.12 point or 0.01 per cent lower to 1,303.76 points. Market turnover was as thin as 8.4 billion baht.

In the year, THAI’s operating loss, exclusive of contribution from Nok Air, hit 2.896 billion baht against the operating profit of 5.75 billion baht in the previous year.

The airline said in the filing to the Stock Exchange of Thailand that in 2013, sale revenue grew only 2.5 per cent on year due to fierce competition, the new tourism law in China, and the domestic political protest in Thailand in the fourth quarter which is a seasonally best-selling period. Meanwhile, once converted to Thai baht, the foreign income showed a 4.3 per cent depreciation thanks to the baht appreciation against major currencies particularly the Japanese yen.

The operating expenses however rose by 7 per cent on year, mainly because of the higher costs of maintenance, advertising, leasing and expenses on pilots and crew.

In the year, 5.4 billion baht in depreciation cost was booked aside from the foreign exchange loss of 3.895 billion baht.

US$1 = 32.50 baht

 

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