Thai Airways’ profits dive 83% year-on-year

[smedly]

22 minutes ago, Dukeleto said:

Perfectionists...I beg to differ in 15 years I cannot recall one example of such behaviour here.

try reading again

[Teenie]

Could be the reduction in baggage allowance although that policy came in recently. I’m flying with them to the UK and the flight back timing wise was perfect.  I’m not sure I will use them again unless price and flight times work. To my advantage. 

[bluemoon58]

3 hours ago, BobbyL said:

As has been mentioned many times before, they're an airline destined to fail. Poor service, older fleets and prices that now I don't even bother to ever check, nor does anyone else I know. 

Lived in LOS for 7 years now and used them for the first time earlier this year. I agree with BobbyL and would add that the staff, food and in-flight entertainment were absolutely awful. Won't ever use again!

[johnarth]

4 hours ago, ratcatcher said:

What high baht?   

the baht is high and getting higher do not know where you been or are you a lucky one and don't need to check?

 

[klauskunkel]

4 hours ago, webfact said:

Thai Airways’ profits dive 83% year-on-year

Does that mean will be no bonus for the board this year?

No, it means there will be no dividends for the share holders.

[DingDongLing]

4 hours ago, shady86 said:

Always put the blame on external factors. Typical Thainess, never look at ownself and self improvement.

I recall this airline was good last year.  Did u have a bad experience?

[malibukid]

so happy. flew them from Tokyo last year.  i was disabled.  no help what so ever.  hope they go under. no compensation.  arrogance from staff and corporate headquarters when filling a complaint.  usually fly ANA.  made a big mistake.

[madmen]

I had a gold card flying with them and was never disappointed but that was 15 years ago.

[Traubert]

3 hours ago, colinneil said:

You are living in cloud cuckoo land, making that comment.

My wife has a friend who gets freebies on a regular basis, that is not a fable, just the truth.

No mate. Your wife's friend is a pilot........

[Oziex1]

It may not be the best carrier but comparing a full service airline like Thai to the so called Budget carriers does not fly with me as those el cheapo carriers all look cheap until your on their website and then it all starts to add up and up. Too many hidden costs.

 

For all their faults, I'll go with them rather than the cheap budget flights.

[Jim walker]

Prices are to high and the service poor needs to improve all round.

[geisha]

The last time I flew with Thai I was very surprised at how old the plane was. Prices were high then. I wouldn’t fly with them again. The high Baht will take its toll on all Thai exports too, it affects nearly everything if you think about it. Here in Europe , restaurants are buying the Cambodian rice instead of the Thai, price

26 € the big sack Cambodian

41 € the Thai.

[ratcatcher]

22 minutes ago, johnarth said:

the baht is high and getting higher do not know where you been or are you a lucky one and don't need to check?

You may or may not be familiar with the word 'facetious' , however as a resident here, I am fully aware of the depths to which the "expat" currencies have sunk.  I am not in the "lucky" category.???????? 

[justin case]

nothing to do that competition is half the price ?

 

they will never learn

 

same as an owner with empty unrented condo, will never lower the price, prefer to wait and lose for many months income 

 

thai logic

 

you leave your brain and common sense at the airport 

[dallen52]

REDUCE the service quality. 

Increase prices. 

Down scale the baggage allowance. 

Charge $us45 a kg for excess baggage.

Ignore the customer service requests during the flight. 

 

Loyalty doesn't count for some things. 

Bottom line profit especially. 

[Naamblar2014]

4 hours ago, gunderhill said:

What they need  is to buy 200 new  planes, get a  new air vice chief air marshall rear admiral and give all staff and their extended  families 1st and Business  class seats as a  perk, lets say 60  times  a year to be reasonable, Im pretty sure that will fix  it.

And raise the price of tickets for standard passengers. 

 

[mlmcleod]

and management's salaries and benefits were reduced 83% to match their stellar performance?

[potless]

Another poster stated that he doesnt even bother to check Thai Airways prices because they are always too high. I felt the same until murphys law came into play. Three years back, a couple of weeks before Christmas my daughter wanted to come to Thailand for xmas. I said too expensive and dont bother checking T.A. She calls me back and has found a return flight for 496 pounds with Thai Airways through an agent.I said book it straight away. British Airways approx 900 pounds. Same last year. Return flight just over 500 pounds. The flight market is totally unpredictable. Never say never. Deals come and go fast. Looking at T.A. website yesterday for a one way flight to London in July. About 14,600 baht includes 20 kg baggage or for an extra 1000 baht or so a 30kg allowance. British Airways nearer 20,000. It varies day by day. Around 6 or 7 years ago I booked a return flight with Qantas from London to Bangkok for 100 pounds less than the British Airways price. The actual flight was operated by British Airways. Same plane.

[Millcx]

5 hours ago, PatOngo said:

That can only mean one thing......time to buy more planes. I just love Thai logic!

And put the prices up “;0)

[whitfield]

I first flew Thai in about 1990.  I used to fly frequently with them but in that time their service has remained completely unchanged.  None of the innovations that other airlines offer have been adopted by Thai.  Take off, pour the drinks, get the meal over and done with and disappear.   That was okay when they charged more or less what other airlines charged but now their Business Class is about 50% more on nearly all routes.  It's substandard and expensive.  They could improve profitability at a stroke if they just asked the customers, but sadly they don't have any anymore!

[bkkdawg]

They're too expensive - simple as that... Seems they've priced themselves out of the market

[mindfulness]

4 hours ago, WinnieTheKhwai said:

Numbers all different in this article on the same topic. 

 

No profits at all, but actually a loss. 

 

So which is it?  Why do some blog sites bother reporting news if it's all wrong?

 

https://www.nationmultimedia.com/detail/Corporate/30369539 

Then again, who's to say that The Nation got the numbers right.. The following seems a little strange: 

 

Ok, so that's basically the same number of passengers, and a pretty healthy number of seats filled.  So how on Earth do you manage this then: 

 

Same number of passengers, but you go from almost 4 billion profit to almost 1 billion loss?    Like, HOW?!  

 

Maintenance, Refurbishing, New Planes ?  By extra spending.   

[Dominion]

It's about bloody time. They need a good look at what their attempts have been in the past to improve services to everyone. Bike the dog and it will bite back.

[Srikcir]

5 hours ago, webfact said:

Net profit of 456 million baht, down from a 2.7 billion baht profit in the first three months of last year [2018]

2019Q1 net profit of 456 million baht - meaningless, probably just some clever accounting.

Thai Airways can't change recent history:

• In the third quarter of 2018 the airways "made" a net loss of Bt4.082 billion, or about twice the loss from 2017! http://www.nationmultimedia.com/detail/Corporate/30359336

Thai Airways has reported 2018 losses of 11.6 billion baht (~365 million USD), up from a loss of 2.1 billion baht (~66 million USD) in the 2017. Some statistics about Thai Airways’ 2018 results:

• Operating income rose 3.9% year-over-year
• During the year the airline took delivery of five planes and retired two, meaning they had a net increase of three aircraft, bringing their fleet to 103 planes (note that part of their 2015 turnaround plan was to greatly reduce the size of their fleet, though it has only gotten bigger rather than smaller)
• Thai’s average load factor decreased from 79.2% in 2017 to 77.6% in 2018
• Available seat kilometers increased by 2.9% in 2018, while revenue passenger kilometers increased by 1% (in other words, they added significantly more capacity than passengers)

https://onemileatatime.com/thai-airways-losing-money/

Any recovery plan in place (seems it changes every year) is meaningless.

Thailand's majority stake in this airways needs to be sold while the baht is still high and funds used to pay down some of the massive infrastructure debt the Prayut government has created over the last four years that will extend out up to 20 years. 

[Thingamabob]

One of the worst managed companies in the history of world business.

[PETERTHEEATER]

5 hours ago, PatOngo said:

That can only mean one thing......time to buy more planes. I just love Thai logic!

IDEA! Why not fit wings to the submarines?

[Bangkok Basha]

I would love to choose Thai Airways for frequent trips to Europe and other destinations, but they are usually 40%-50% more expensive than other full fare carriers. Until they become competitive on the basis of price, they will never increase their revenues. The proposed purchase of new aircraft is not the solution- being competitive is. They have recently downgraded the  benefits for their frequent flier program (as have other carriers I use- such as United), so they are not alone in that. They are also not winning in the service category compared to ANA, Emirates, Etihad, or Cathay Pacific.

[madmen]

6 minutes ago, Bangkok Basha said:

I would love to choose Thai Airways for frequent trips to Europe and other destinations, but they are usually 40%-50% more expensive than other full fare carriers. Until they become competitive on the basis of price, they will never increase their revenues. The proposed purchase of new aircraft is not the solution- being competitive is. They have recently downgraded the  benefits for their frequent flier program (as have other carriers I use- such as United), so they are not alone in that. They are also not winning in the service category compared to ANA, Emirates, Etihad, or Cathay Pacific.

new planes = lower fuel consumption and thats how airlines make their profit, its all about the fuel and bums on seats of course

[Kalasin Jo]

5 hours ago, thedemon said:

That's actually not true but hey, why not trot out an old Thaivisa fable when you get the chance.

There were huge, in fact off the scale, perks for staff, their families and others of rank. These were cut back but still remain significant. There again a lot of airlines offer staff free seats, if available. The if available may be the difference. That said I have flown Thai International more recently as they appear to be more competitive, especially if you don't want long lay overs travelling to Europe. Always best to do some research on eg Expedia, before booking anything other than domestic where the competition seems to have settled in to a comfortable ( for them) price across the board, up significantly from a couple of years ago.. I like that Thai Smile price is all inclusive of a bag 20kg, which I usually need, reasonable cabin bag policy, drink and snack.

[new2here]

I think there is some degree on truth related to the THB strength if you will.. given that a fair percentage of TGs bookings originate outside of Thailand, there’s FX risk as those sales have to be converted to THB and repatriated if you will.
True, they most likely use FX forward contracts in part to hedge this risk, but I suspect that they don’t have total cover as the cost to buy said contacts would be prohibitive- so I’m sure there there is some degree in truth related to their claim.

As far as the often used claim of TGs “freebies” go.

That *may* be a small factor — but really ONLY IF those freebies displace otherwise paid passenger revenue.

If someone holding a “freebie” tights fly’s TG in a seat that otherwise would have gone unsold, there really is no revenue loss and a very marginal cost element.

True, anyone flying “freebie” does add cost - a very, very nominal fuel element.. some catering (more so for premium cabins IF they cater for those “freebie” flyers), nominal ground handling and associated taxes (unless “freebie” passengers have to pay those themselves)

So... while I don’t think the *bulk* of TGs woes are directly fuel-related, I DO think that a fair percentage points of losses ARE fuel-related. Exactly how much is hard to tell without detailed accounting and some proprietary operating data.


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