Chansin Treenuchagron, Acting President of Thai Airways International, revealed the company’s financial status today, August 14.
The Acting President stated that Thai Airways has encountered financial damage and been trying to conduct strict financial measures and money management as both domestic and international flights are greatly reduced due to the Covid-19 pandemic and government travel restrictions across the globe.
During six months, Thai Airways airline’s net loss has increased to 28 billion baht which widens a total worth of debt to reach more than 330 billion baht, according to its financial results.
In the first quarter, its total revenue was decreased by 23.7% to 38 million baht compared to the same period last year due to lower number of passenger and cargo transportation despite the fact that it is the period that provides Thai Airways with the most profit, as Thailand attracts many Chinese tourists during the Lunar New Year.
In the second quarter that was affected by the COVID-19 outbreak, the airline therefore provided only cargo flights and charter flights which dropped the revenue significantly by 94.1% with a total of 2.4 million baht.
The dramatic decrease in the company’s income has resulted in its total liabilities to reach 332.1 billion baht, 36.7% up from the end of 2019.
Despite its financial troubles, Thai Airways believed that its rehabilitation plan would be their last hope to restore its financial stability. The plan will be first examined by the Central Bankruptcy Court on August 17. Thai Airways has not announced when international flights will resume, as this is a decision that will need to be made with the Thai Government. Thailand still remains closed to general tourists.