“The bottom line would definitely improve as we are strictly proceeding with our restructuring plans,” THAI president Charamporn Jotikasthira said at a press conference yesterday.

Last year, THAI reported a net loss of Bt13 billion.

THAI plans to issue refinancing bonds worth Bt7 billion this year and invest Bt100 billion on maintenance projects, said Charamporn.

He revealed that the airline would next week finalise its second early retirement programme, which is expected to cost the company about Bt2.2 billion.

Asset disposal

Meanwhile, the disposal of non-core assets is going on, including a 39-per-cent stake in Nok Air and 23 per cent in Bangkok Aviation Fuel Services.

In the first quarter, THAI’s revenue decreased by 2.7 per cent year on year to Bt50.18 billion, but operating profit rose 62.6 per cent year on year to Bt7.18 billion. After deducting impairment loss of assets and aircraft, maintenance provision expenses for lease of aircraft, and foreign exchange loss, it showed a net profit of Bt6 billion against Bt4.5 billion last year.

During the first quarter, it operated with 95 planes, down by nine from the same quarter a year earlier. Route and plane adjustment led to a 1.8-per-cent drop in passengers but there was an increase in cabin factor from 75.4 per cent to 77.5 per cent. Fuel cost dropped by 25.1 per cent year on year to Bt3.64 billion.