THAI Airways Completes Sale of Retired Fleet Amidst Financial Shifts

Thai Airways International (THAI) recently finalized the sale of its entire retired fleet, comprising 18 aircraft including six Boeing 777-200s, six Boeing 777-300s, and six Airbus A380s.

CEO Chai Eamsiri confirmed the completion of sales agreements for all 18 aircraft on May 12. While paperwork for six aircraft has been finalized, the remaining 12 are expected to follow suit soon.

The sale incurred a non-cash impairment charge of 3.33 billion baht in THAI’s Q1 2024 financial results, significantly impacting the airline’s net profit for the quarter.

Despite this charge, THAI reported a 10.7 percent increase in total revenue for Q1 2024, reaching 45.9 billion baht, attributed to robust passenger traffic and higher yields, particularly on key routes like Europe, Australia, and Japan.

However, total expenses for the quarter rose to 34.88 billion baht, up by 22.5 percent from the same period last year. Factors contributing to this increase include higher production and traffic volumes, additional flights and destinations, and rising passenger numbers. Currency depreciation, elevated ground handling fees, and increased raw material prices further escalated expenses.

Notably, losses from foreign exchange rate fluctuations totaled 5 billion baht, while impairment of aircraft and right-of-use assets and revolving aviation equipment surpassed 3 billion baht. Combined, these factors led to a net profit of 2.42 billion baht, marking an 80.7 percent decrease from the same period last year.

The airline's active fleet as of March 31, 2024, stands at 73 aircraft, reflecting an increase from 70 at the end of 2023. This expansion has allowed THAI to enhance frequencies on popular routes, projecting continued revenue growth in the upcoming quarters.