THAI Announces 3rd Quarter 2012 Results

Thai Airways International Public Company Limited (THAI) announced that in the third quarter 2012, its consolidated total revenues amounted to THB 52,431 million, which was an increase of THB 2,470 million, and had a consolidated profit of THB 1,868 million.

Mr. Sorajak Kasemsuvan, THAI President, said that in the third quarter of 2012, air traffic demand continued to see growth over the same period last year. THAI adjusted its traffic program to match seasonality and better respond to the changing competitive environment. Product improvements and passenger service enhancements continued through the year and throughout the organization while feedback from the establishment of THAI Smile as a new business unit has been positive. The new THAI Smile service is designed to enhance THAI’s cost competitiveness and opens new opportunities to expand its network on short-haul routes in the Asian region. The multiple product strategy has improved THAI’s total system passenger traffic over the same period last year, resulting in achievement of an average cabin factor of 76.7 percent which was higher than the 74 percent average achieved last year. While the average fuel price is still considered high, it is lower than the same period last year. That combined with the increase in compensation received from fuel hedging contracts have consequently reduced THAI’s year on year cost by 7.5 percent, increasing operating profit for the third quarter 2012.

In the third quarter of 2012, THAI’s consolidated total revenues amounted to THB 52,431 million, which was an increase of THB 2,470 million or 4.9 percent from last year. THAI’s consolidated total expenses, excluding gain (loss) on foreign currency exchange amounted to THB 50,399 million, which was THB 731 million or 1.5 percent higher than last year. THAI’s expenses decreased by THB 803 million. Most expenses were lower than last year especially for fuel expense which was THB 1,499 million lower than last year. As a result, profit before foreign currency exchange and income tax for THAI and its subsidiaries amounted to THB 2,032 million, an increase of THB 1,739 million when compared to last year. During the third quarter 2012, THAI and its subsidiaries also recorded a loss on foreign currency exchange on the amount of THB 120 million compared to last year where THAI gained THB 2,299 million. Consequently, THAI and its subsidiaries reported a profit before income tax of THB 1,912 million, a decrease of THB 680 million from last year.

During the third quarter of 2012, THAI’s consolidated profit totaled THB 1,868 million. Profit attributable to owners of the parent was THB 1,750 million or 0.80 baht per share. Net profit decreased compared to last year’s THB 2,447 million or 1.12 baht per share. EBITDAR was THB 8,622 million, which increased by THB 1,763 million or 25.7 percent over last year.

THAI and its subsidiaries’ operating results for the first nine months of 2012 (1 January – 30 September 2012) reflects a profit of THB 4,078 million. THAI and its subsidiaries reported profit attributable to owners of the parent totaling THB 3,868 million or 1.77 baht per share for the nine months of 2012 compared to last year’s loss of THB 4,809 million or a loss of 2.20 baht per share. THAI and its subsidiaries’ other comprehensive income was THB 54 million which generated a comprehensive income of THB 4,132 million. Therefore, the total comprehensive income for the period attributable to owners of the parent totaled THB 3,922 million.

As of 30 September 2012, THAI’s consolidated total assets were THB 291,553 million, an increase of THB 17,108 from 31 December 2011. Total liabilities totaled THB 223,691 million, which was an increase of THB 12,681 million. Total shareholders’ equity amounted to THB 67,862 million, which was an increase of THB 4,427 million.