Thai Airways Turns to Q2 Net Loss Due to Fuel Costs
By Ploy Ten Kate, Reuters | Aug. 11, 2011
Thai Airways International Pcl reported a net loss in the second quarter on Thursday, hit by surging jet fuel costs and a low cabin factor due to the impact of the Japanese earthquake in March.
The national carrier made an April-June net loss of 7.87 billion baht (US$264 million), versus a revised 1.4 billion baht profit a year earlier, when foreign exchange gains helped to offset lower passenger numbers at a time of violent street protests in Bangkok.
Five analysts polled by Reuters had on average forecast a net loss of 7.78 billion baht.
Analysts expect Thai Air's earnings to recover in the second half, helped mainly by an improving cabin factor -- the percentage of passenger seats sold -- during its high season.
However, that improvement in earnings remain subject to volatility in jet fuel prices, and global economic problems may also hit air travel.
Shares in Thai Air, valued at about US$2 billion, fell more than 23 percent in the second quarter, versus a 0.6 percent drop in the market . (US$1= 29.85 Baht)