Thai Airways International, which recently entered court-supervised business rehabilitation amid longstanding financial woes, plunged deeper into the red in its half-yearly financial results.
For the six months ended 30 June, the Star Alliance carrier reported an operating loss of Bt18.3 billion ($590 million), widening the Bt7.9 billion operating loss it made in the same period last year.
Thai Airways’ net loss also increased to Bt28 billion, compared with Bt6.4 billion in the first half of 2019.
The troubled carrier blamed a collapse in passenger travel demand from the coronavirus outbreak — as well as subsequent travel restrictions imposed both in Thailand and across the world — for a drop in takings.
Revenue for the period more than halved, falling 56% year on year to Bt40.5 billion. Passenger revenue fared the worst, declining nearly 60% year on year, as Thai was forced to suspend scheduled flights for most of the quarter between April and June. The carrier also notes that passenger traffic fell nearly 59% for the period.
Expenses declined 41% to Bt58.8 billion, on the back of a decrease in traffic.
For the period, the carrier carried 4.57 million passengers, a 62% decline year on year. ASKs fell 53%, while RPKs plunged 59%.
It took no new aircraft during the period, but held a sale on 30 June for 15 previously-operated aircraft, including Airbus A340-500s, A300s as well as Boeing 737-400s.
The carrier on 19 May was given the green light to reorganise under the supervision of a local bankruptcy court, as its financial troubles were further exacerbated by the coronavirus outbreak.
A few days later, the Thai government reduced its shareholding in the carrier, relinquishing its role as its majority shareholder. The disposal of shares is part of the carrier’s restructuring plan.
A hearing about Thai’s business rehabilitation has been set for 17 August.