Shares of Thai Airways International Public Company Limited (SET: THAI) surged on Thursday, trading up 4.51% or THB 0.30 to THB 6.95 as of 11:06 AM, with a trading value of THB 416.47 million.
The rally came as Thai Airways reported revenues (excluding one-off items) totaled THB 190.28 billion, up 1.2% year-on-year. This growth was primarily driven by passenger and excess baggage revenues, representing 81.8% of the total, at THB 155.71 billion, a 0.5% increase from the previous year.
The company had a net profit of THB 30,940 million, an increase of THB 57,841 million or 215.0% from last year, with profit attributable to owners of the parent company of THB 30,910 million.
Passenger traffic (RPK) increased by 8.3%, and seat capacity (ASK) was up by 7.7%. The company attributed the rise to the larger active fleet and higher utilization rates, as well as the reinstatement of the Brussels route in December 2024. Increased frequencies on popular routes like Shanghai and Denpasar also helped push the average cabin factor to 79.2%, up from 78.8% last year, supported by network adjustments and new codeshare agreements.
However, average passenger yield (including fuel surcharges and insurance fees, excluding excess baggage) declined 7% to THB 2.77 per unit, a drop of THB 0.21, equivalent to THB 11.7 billion. The main reason was the strong Thai baht against key revenue currencies (yen, euro, US dollar), which reduced the average yield by THB 0.12/RPK or THB 6.7 billion. Excluding currency effects, yields still decreased by 3% due to intensifying price competition.
Regional breakdowns were mixed:
- Asia: Revenues fell 3.3% to THB 76.97 billion as average yield dropped 6.6%, offsetting a 2.4% increase in capacity from more Shanghai and Denpasar flights (14 weekly), improving the cabin factor to 75.5%.
- Europe: Revenues rose 6.1% to THB 55.84 billion, with a 14.7% increase in capacity after relaunching Milan, Oslo, and Brussels services. The cabin factor climbed to 83.2%. Still, yields dipped 8.3% due to baht appreciation versus the euro.
- Australia: Income increased 6.2% to THB 15.30 billion, thanks to resuming Perth flights and boosting Sydney services. Despite 11.8% more capacity, yields dropped 4.4%, and the cabin factor fell to 77.9%.
- Domestic: Revenues declined 8.4% to THB 7.60 billion amid reduced capacity and traffic following seat changes in the A320-200 fleet and the suspension of the Narathiwat route. Yet, yield rose 0.3% due to the introduction of business class seating, while cabin factor dropped to 89%.
Cargo and postal revenues were relatively steady at THB 17.25 billion, slightly down by THB 17 million, with unit yield dropping 7.3% to THB 8.50, due to impacts from the strong baht and intense competition. Ancillary services (ground handling, catering, cargo warehouses, aircraft maintenance) rose 5.3% to THB 11.45 billion, on the back of increased passenger numbers and client flights.
On the expense side, total costs (excluding one-time items) jumped 2% to THB 149.44 billion. Aviation fuel costs fell 6.1% to THB 47.38 billion due to an average fuel price decline of 7.8% and a stronger baht, despite increased flight frequencies. Operating expenses excluding fuel climbed 6.3% to THB 102.06 billion.
Variable costs rose 3.0% to THB 63.60 billion, driven by higher flight and crew expenses, but maintenance costs fell by 8.3% after converting lease agreements for four Boeing 777-300ERs into purchases, the revision of the maintenance provisions for 1 Airbus A320-200 aircraft, the appreciation of the Thai baht, and the recognition of guarantee claim for Boeing 787-8 aircraft grounded pending for repair.
Fixed expenses increased 12.3% to THB 38.46 billion, including a 27.1% surge in employee benefits from revamped salaries, compensation structures, special payments, and workforce growth. Depreciation and amortization expenses also rose 7.4%.
Financial costs fell significantly by 30% to THB 13.15 billion, primarily due to debt-to-equity conversions under the rehabilitation plan and the conversion of aircraft lease deals. The company booked one-off gains, including THB 4.23 billion from lease terminations and THB 653 million from net foreign exchange gains due to the strong baht.
EBITDA came in at THB 53.88 billion, down by 8.9%, as revenues lagged the pace of cost increases. Notably, unit cost (excluding fuel) fell from THB 1.461 to THB 1.443/ASK.
Thai Airways also announced a cash dividend of THB 0.21 per share for the financial year ended December 31, 2025: THB 0.16 per share from non-BOI earnings and THB 0.05 from BOI-promoted income. The ex-dividend (XD) date is set on April 24, 2026, with the payment scheduled for May 18, 2026.
