Thai Airways suffers net loss of 12 bil baht in 2019

It was the third straight year the national carrier of Thailand suffered a net loss.

The losses widened by 3.6% compared to the previous year.

In a statement,  THAI president Sumeth Damrongchaitham said THAI and its subsidiaries posted a revenue of 184 billion baht in 2019, decreasing 15.4 billion baht or 7.7%.

“THAI was affected by various negative factors, including the global economic slowdown, US-China trade war, natural disaster, and strongest baht appreciation in six years,” he said.

Sumeth said THAI also temporarily cancelled flights on some routes due to closure of airspace in Pakistan, protests in Hong Kong, and the Covid-19 outbreak that began at the end of 2019.

He said THAI and its subsidiaries’ carried 24.51 million passengers in 2019, an increase of 0.8% from the previous year.

THAI implemented strict cost reduction measures that resulted in a 5.8% decrease in costs compared to the previous year, he added.

Regardless of the negative operating results, the company made improvements in cost control, whereby total expenses were 196.4 billion baht, a drop of 5.8% compared to previous year.

Sumeth said THAI has been affected by the Covid-19 crisis since the end of 2019, resulting in flight reductions just like other airlines.

“The company has prepared plans and established various measures to handle this crisis and control the impact, with emphasis on cost control and cost reduction in non-operational areas and safety, for example, postponing investments and employment, and reducing procurement expenses and unnecessary equipment.

“The company also implements pay cuts for the president, executive vice-presidents, and vice-presidents. THAI’s board of directors agreed to reduce their remuneration by 50% for six months, effective March 2020.

“Should the Covid-19 crisis continue and worsen, THAI has prepared a plan and stronger measures,” he said. – March 03, 2020, Bernama