Thai Airways announces colossal losses but promises strong comeback

Thai Airways International has assured that its massive losses for the 2024 financial year will not hamper its operational performance.

The airline reported a staggering loss of 26.901 billion baht.

This loss was mainly caused by a one-time accounting loss of 45.271 billion baht resulting from the debt-to-equity conversion carried out in November last year.

The majority of this loss, approximately 40.582 billion baht, resulted from the conversion of debt into equity by creditors at prices below fair value.

Despite this, Thai Airways stressed that these were accounting losses unrelated to its core business and would not have an impact on its financial health.

Piyasvasti Amranand, chairman of the recovery plan administrator, said the airline's total revenue, excluding exceptional items, increased by 16.7 percent to 187.989 billion baht in 2024.

Operating profit before interest and taxes increased 3.2% to 41.515 billion baht, with an EBIT margin of 22.1%, exceeding recovery plan projections.

Thai Airways also announced a EBITDA of 41.473 billion baht by the end of 2024, more than double the 20 billion baht required under the recovery plan.

The company's shareholders' equity rebounded to 45.495 billion baht, a significant improvement from the negative 43.352 billion baht recorded in 2023.

This recovery eliminates any risk of delisting from the Stock Exchange of Thailand and supports the airline's planned exit from the recovery process.

See: Thai Airways expected to emerge from rehabilitation and return to the stock market soon

Thai Airways prepares for its future

Thai Airways flight attendant practicing Wai.

Looking ahead, Thai Airways is scheduled to hold an extraordinary general meeting of shareholders on April 18 to appoint new directors, including industry veterans and independent board members.

The meeting will also discuss reducing the nominal value of the company's shares from 10 baht to 1.30 baht, and decreasing the registered capital from 283.033 billion baht to 36.794 billion baht to cover accumulated losses.

Piyasvasti assured that this adjustment would not affect creditors, overall equity or share value.

Rather, it aims to facilitate future dividend payments and strengthen investor confidence.

“We will exit the recovery plan as planned.

While pursuing our goal of profitability and growth, we remain committed to fully repaying our debt, planning to repay approximately 10,000 million baht annually until 2036.”

CEO Chai Eamsiri revealed plans to increase flight frequency in 2025, with nine new aircraft expected by mid-year.

Although no new destinations are planned, routes to Mumbai, Germany, Pakistan and Western Europe will see increased flight frequencies.

Thai Airways is also focusing on network sales to diversify its revenue streams and reduce its dependence on the market.

With a fleet of 79 aircraft, the airline aims to increase the number of its weekly flights to 883 by 2025 to meet growing travel demand.

See also:

Thai Airways aims to return to the Thai stock exchange in 2025

Thai Airways ranked among the world's top 10 airlines

Thai Airways' Amazing Journey from Bankruptcy to Recovery

Thai Airways' business class seats under fire

Thai Airways: You have until March 31 to request a refund for your tickets

Thai Airways abandons Airbus A350 and orders 45 Boeing 787s

Source: The Thaiger