Thai Airways posts $116.4 million 3rd quarter net loss

Thai Airways posts $116.4 million 3rd quarter net loss

   Thai Airways said “abnormally high fuel price” and increased personnel expenses resulted in a net loss of 4.8 billion baht ($116.4 million) in the third quarter of its fiscal year ending Oct. 31., compared to a net deficit of 913 million baht in the year-earlier period.

   The airline posted an operating loss of 5.9 billion baht ($143 million) for the quarter, compared to an operating income of 106 million baht in the same quarter last year. Revenue was 37.1 billion baht ($902 million) up 7 percent from 34.6 billion baht.

   The airline said fuel costs jumped 55.1 percent to 12.2 billion baht ($296.7 million). Increased personnel expense was a result of a one-time change for implementing an early retirement program and the implementing a new salary structure, retroactive to October 2004, Thai Airways said.

   For the year-to-date, Thai Airways reported net profit of 4.4 billion baht ($107 million), down 52 percent from 8.6 billion baht after nine months of its previous fiscal year. Operating profit was 9.1 billion baht ($221.3 million), down 42 percent from 15.8 million baht. Revenue was 118.9 billion baht ($2.9 billion) down 6 percent from 112.1 billion baht.

   At the same time, Thai Airways said it is laying off 53 employees from its Los Angeles town and airport offices, representing 50 percent of the existing staff, as part of a previously announced cost-cutting measure.