Thai Airways Forecasts Stock Exchange Return in 2Q25 Amid Positive Financial Prospects

Thai Airways Public Company Limited (SET: THAI) anticipates rejoining the Thai stock exchange in the second quarter of the upcoming year, fostering optimism as the rehabilitation program unfolds as scheduled.

Emphasizing a substantial achievement, the global aviation report “World’s Most Profitable Airline in 2023” by Airline Weekly positions the Thai national airline at the top spot for its exceptional operating margin of 25%, a record among 72 global carriers.

Dr. Piyasvasti Amranand, Chairman of the Rehabilitation Plan Administrator overseeing Thai Airways, underscores a favorable trajectory in the airline’s operations for 2023 following a noteworthy turnaround. The company successfully reversed a net loss of 272 million baht in 2022 to record a substantial net profit of 28 billion baht in the following year.

Attributing the airline’s remarkable recovery to its robust operational performance rather than asset sales during the pandemic-induced crisis, Dr. Piyasvasti remains sanguine about maintaining this positive momentum through 2024. Forecasts for the year include servicing 15 million passengers with an average cabin occupancy of 80%, with revenues expected to approximate pre-pandemic 2019 levels.

Regarding fleet expansion, Dr. Piyasvasti discloses an agreement for Thai Airways to progressively acquire 45 aircraft from 2027 onwards. Noteworthy is the airline’s considerable cash reserves, indicating the feasibility of these acquisitions without additional financing. Stressing the strategic necessity of a larger and more competitive fleet to align with the evolving market dynamics, the Chairman underscores the importance of expanding the fleet to safeguard market share.

Furthermore, as of December 31, 2023, Thai Airways and its subsidiaries possess a total of 70 active aircraft, including A320-200 aircraft under Thai Smile’s operations, alongside plans to auction off 20 decommissioned aircraft amid the rehabilitation process.

Looking ahead, the airline targets a completion of shareholding equity restructuring within the current year, aiming to raise approximately 25 billion baht through capital raise. This fundraising initiative seeks to bolster the company’s equity position, a vital prerequisite for successfully concluding the rehabilitation program and paving the way for the expected exit in the second quarter of the following year.

Dr. Piyasvasti anticipates a swift re-entry into the stock market upon the program’s completion and expresses confidence in a 3-4 year timeline to eradicate accumulated losses and potentially reinstate dividends.