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Friday 26 February 2021

Record loss for struggling Thai Airways

Thai Airways, traditionally one of the best international carriers in Asia. has reported its worst ever full-year financial performance, with an annual loss of over $6 billion for 2020.

It was the highest loss ever for a Thai company, based on Stock Exchange of Thailand data, Travel Mole reported.

Ticket revenue plunged 73.8% to THB48.3 billion while it posted a one-time charge of THB92 billion for its employee separation plan as well as large impairment losses on aircraft.

The news came just days before the airline submits a final debt rehabilitation plan to the Thai bankruptcy court in a bid to significantly reduce its liabilities.

The availability of vaccine supply and how quickly Covid jabs are carried out in Thailand and overseas will determine how quickly the airline can recover.

"Vaccines will be a significant factor in the aviation industry because it affects entry restriction policy of Thailand and other countries around the world," Thai Airways said in a statement.

"However, air travel around the world is expected to return to normal in 2024."

Thai Airways shares are suspended by the Stock Exchange of Thailand as it mulls whether to de-list the airline due to its negative equity.

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