(MENAFN- Bangladesh Monitor) Bangkok : Thai Airways International Public Company Limited (THAI) and its subsidiaries announced an operating profit of THB 4,071 million (412.2 per cent better than the same period in the previous year) after deduction of maintenance provision for operating lease aircraft, special expense related to the transformation plan, and impairment loss of assets and aircraft.
The total amount of these items was THB 6,173 million while gain on foreign currency exchange was THB 685 million resulting in a net profit of THB 47 million, which was an improvement from the THB 13,047 million loss in the same period last year.
Usanee Sangsingkeo, Executive Vice President, Aviation Business Unit, and Acting President, Thai Airways International said that THAI continued to implement its second phase of the transformation plan "Strength Building" in 2016 by embarking on four main strategies: Generating aggressive revenue; reducing cost and increasing efficiencies; building capabilities for sustainable growth; and creating excellent quality of service.
THAI implemented these tasks by using information technology with international standards to enhance revenue management and to implement its new business class service, to launch new routes: Bangkok-Tehran, Phuket-Frankfurt, to resume the Bangkok-Moscow route, to add flight frequencies in Europe, and continuation of last year's MSP programme.
THAI adjusted its fleet strategy by taking delivery of two Airbus A350-900XWB aircraft that primarily operate on intercontinental routes while it decommissioned two Boeing B777-200 operating lease aircraft on December 31, 2016 with 95 aircraft remaining in the fleet, which is the same amount as the end of the previous year but with improved aircraft utilisation. Consequently, product traffic (ASK) of THAI and its subsidiaries increased by 1.9 per cent while passenger traffic (RPK) increased by 2.5 per cent. The average cabin factor was 73.4 per cent higher than last year which was 72.9 per cent with 22.3 million passengers carried, representing a 4.8 per cent increase from last year.
As a result of development in various areas based on the strategic plan and satisfactory success of the organisation's transformation, there was an overall improvement in customer satisfaction evident from various awards that the Company received.
In addition, the financial performance in 2016 of THAI and its subsidiaries showed an operating profit of THB 4,071 million compared to last year's loss of THB 1,304 million or 412.2 per cent, a vast improvement from last year mainly because total expense decreased by 7.1 per cent from the decrease in fuel expense by THB 17,907 million (28.3 per cent) resulting from the jet fuel prices that dropped by 21.6 per cent and improved fuel risk management, net finance cost reduced by THB 431 million (7.7 per cent) due to efficient cash management and financial restructure, while non-fuel operating expense increased by THB 4,773 million (3.9 per cent) mostly due to increase in maintenance and overhaul expenses. Total revenue decreased by THB 8,190 million (4.3 per cent).
Passenger and excess baggage revenue reduced by THB 4,428 million (2.9 per cent) due to fuel surcharge adjustment while other revenue reduced by THB 3,775 million since last year, the main reason being that last year THAI received insurance compensation from the delayed delivery of Economy Class seats at the amount of THB 3,968 million.
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