November 5, 2008
Thai Airways International returned to a net profit in the third quarter on Wednesday as a huge foreign exchange gain more than offset high jet fuel costs.
The national carrier reported a net profit of THB426.2 million baht (USD$12 million), in the July-September quarter, compared with a revised loss of THB971.09 million a year earlier and a loss of THB9.25 billion in the previous quarter.
The airline posted a foreign exchange gain of THB4.73 billion in the quarter versus a loss of THB3.36 billion a year earlier, mostly due to the conversion of a loan into baht terms, it said in a statement.
Its passenger revenue rose 10 percent to THB43 billion, but it posted a loss from operations of THB3.2 billion versus a profit of THB2.43 billion a year earlier.
Fuel and oil costs jumped 68.2 percent from a year earlier due to a 79 percent surge in average jet fuel prices, it said.
Analysts expect weak earnings in the fourth quarter as passenger volume is likely to be hurt by political instability in Thailand and the global financial crisis.
“The fourth quarter is normally the peak season, but it’s not very good this year. The number of passengers is easing, especially in regional markets,” President Apinan Sumanaseni told reporters.
(Reuters)
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