THAI’s Q2 loss worse than expected
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Thai Airways International (THAI) has reported a bigger-than-expected loss in the second quarter, Reuters reported. The carrier suffered after being hit by foreign exchange losses and falling passenger numbers, partly due to the A(H1N1) flu scare.
The national carrier said it made a net loss of THB5.4 billion (US$158.6 million) in the April-June period, compared to the THB9.25 billion loss recorded in the same period last year, when it was hit by a huge foreign exchange loss and rising jet fuel prices. The loss was higher than the average THB4.62 billion deficit forecast by five analysts surveyed by Reuters.
The outlook for the airline in coming quarters remains bleak, analysts said, with a decline in air traffic demand and price promotions likely to further erode earnings. Like most airlines, THAI is currently undertaking a major cost-cutting plan. The carrier has set a goal to achieve THB10.8 billion in cost reductions this year, and recently reported that it had cut non-fuel expenses by 18.9% in the first five months 2009.
Comments are closed.