Thai Airways Records Improving Performance in Q3 2023

DALLAS — The flag carrier of the Kingdom of Thailand, Thai Airways (TG) recently released its financial performance results for the third quarter (Q3) of 2023. These financial results include both Thai Airways and Thai Smile (WE), their regional subsidiary airline.

Thai Airways and its subsidiaries reported a total revenue (excluding one-time transactions) of approximately US$1 billion (฿37,008million), higher than the previous year's Q3 revenue of US$913,133,067 (฿32,860million) or an increase of 12.6%. The total number of passengers carried was 3.27 million, with Thai Airways carrying 2.19 million, and Thai Smile Airways (WE) taking 1.08 million.

Combined, the average cabin factor was 77.3%, TG at 77.1% capacity, and WE at 80.9% capacity. This was a mere 0.3% increase from last year's 77.0%.

Thai Airways and WE reported their total expenses to be US$813,967,670 (฿29,289 million), excluding one-time transactions. This result was higher than that of the previous year, which was US$804,268,646 (฿28,940million).

The airline said this was due to an increase in variable costs and fuel expenses, which accounted for 41% of the expenses. An operating profit, before financial costs and excluding one-time transactions, was reported to be US$214,595,533 (฿7,719million). Improving from Q3/2022 which saw an operating profit of US$108,979,724 (฿3,920million).

Results from the Start of 2023

Since the start of 2023, TG and its subsidiaries reported a total revenue, excluding one-time transactions, of around US$3 billion (฿115,897 million). This was higher than the results for the same period last year, which was approximately US$1.8billion (฿65,567million).

Total expenses this year, excluding one-time transactions, amounted to US$2.4 billion (฿86,567 million). In comparison to last year's total expenses in the same period of time off, approximately US$1.8 billion (฿66,115 million), the expenses this year were higher.

Operating profits since the start of 2023, excluding one-time transactions and before financial costs, have totaled US$815,095,951 (฿29,330 million). This is a much better performance than the first nine months of 2022, where TG and its subsidiaries saw an operating loss of US$15,078,499 (฿548 million)

Fleet, Passenger Numbers

Twenty narrow-bodied and 48 wide-bodied aircraft make up the 68 active aircraft that TG and its subsidiaries now operate. In September, TG received delivery of one wide-bodied operating lease aircraft, bringing the total number of operating lease aircraft to three in 2023. In the first nine months of 2023, TG and its subsidiaries utilized their aircraft an average of 12.0 hours per day, WE utilized its aircraft an average of 8.2 hours per day, while TG itself utilized its aircraft an average of 13.7 hours per day.

With passenger traffic (RPK) rising by 100.7% and traffic production (ASK) increasing by 53.3%, the average cabin factor (TG at 80.0% and WE at 80.4%) grew from 61.1% to 80.0% this year. The total number of travelers was 10.13 million, a 77.4% increase, was handled by Thai (6.50 million) and TG (3.63 million).

Thai Airways International filed for bankruptcy in 2020 and is currently undergoing a rehabilitation plan and debt repayment scheme. The airline plans to exit bankruptcy by 2024.

Featured image: Thai Airways HS-THE Airbus A350-941 | Photo: Alberto Cucini/Airways