Tourism growth boosts Thai Airways profit

THB 3.3 billion Q1 loss turns into THB 4.4 billion Q1 profit
A rising tide of tourists and foreign exchange gains helped Thai Airways to return to net profit in the first quarter, outweighing restructuring costs.
The flag carrier made a profit of THB 4.4 billion (€116 million) excluding foreign exchange and income tax – almost inverse to its THB 3.3 billion loss in Q1 2014. Operating revenues rose 3.4% and expenses including fuel costs fell 11.6%.
The airline thinks that the rise in passenger numbers will result in a cabin load factor of 80% for the whole of 2015. In April it stood at 76%.
“The weakness of the baht will encourage more foreign tourists to visit Thailand,” the airline’s president, Charumporn Jotikasthira, said.
A two-year restructuring plan involving decommissioning planes and cutting job aims to slash operating costs and capacity by 20%.
[image courtesy Thai Airways]

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