In the first quarter of 2025, Thai Airways International Public Company Limited (SET: THAI) and its subsidiaries reported the total revenue (exclude one-time items) at 51,625 million baht, 12.3% higher than the same period last year which was 45,955 million baht.
The significant increase in revenue was driven by the continued growth in passenger travel demand, along with fleet expansion and increased flight frequency. Passenger production (Available Seat Kilometer-ASK) increased by 21.1% from the same period last year and the passenger traffic (Revenue Seat Kilometer-RPK) also increased by 20.8% from the same period last year, while an average cabin factor of 83.3% was similar to the previous year. The total number of passengers carried was 4.33 million, an increase of 11.6% from the same period last year.
THAI and its subsidiaries reported the total expenses (exclude one-time items) at 37,964 million baht, higher than the same period previous year of 3,084 million baht (8.8%), due to variable costs associated with increase in production and services, despite fuel expense decrease from last year by 1.7%. THAI remains robust in generating operational profit. Earnings before interest, tax, depreciation and amortization (EBITDA) (exclude one-time items) was 13,661 million baht; higher than the same period last year for 2,586 million baht or 26.5% EBIT margin.
THAI and its subsidiaries’ financial costs, in accordance with Financial Reporting Standard No. 9 (TFRS 9), was 3,481 million baht. THAI and its subsidiaries had net one-time items as expense amounted to 339 million baht mainly due to impairment loss on assets, impairment loss determined in accordance with the TFRS 9, and loss on derivatives. However, THAI and its subsidiaries had gain from foreign currency exchange. Consequently, THAI and its subsidiaries reported a net profit of 9,839 million baht. EBITDA after cash lease payment amounted to 12,728 million baht.
For the first quarter of 2025, THAI had a total of 78 active aircraft, an increase of 5 aircraft that THAI acquired and utilized for flight services from the same period last year. The average aircraft utilization was 13.7 hours per day. The Company plans to receive new A321neo aircraft, scheduled to join THAI fleet at the end of 2025, all equipped with inflight entertainment system at every seat and free Wi-Fi for Royal Orchid Plus (ROP) members in order to elevate passenger experiences.
In this quarter, THAI enhances customer experiences by installing an inflight high-speed internet in its A330-300 aircraft. The Inflight Connectivity (IFC) service, where passengers can text and chat free of charge, is already available in the first two aircraft. In addition, since 1 May 2025, ROP members can already enjoy free internet (duration and speed depends on their status).
As of 31 March 2025, total assets of THAI and its subsidiaries were 297,753 million baht, an increase of 5,245 million baht (1.8%) from 31 December 2024. THAI has cash, bill of exchange, time deposit and debenture with maturity more than three months and less than twelve months of 124,847 million baht, an increase of 9,858 million baht. Total liabilities were 242,314 million baht, a decrease of 4,605 million baht (1.9%). As of 31 March 2025, the shareholders’ equity of THAI and its subsidiaries amounted to 55,439 million baht, an increase of 9,850 million baht (21.6%). The debt to equity (D/E) ratio and Interest Bearing Debt to equity ratio is 4.37 and 2.23 respectively, better than those before entering rehabilitation in 2019, which were 20.66 and 12.52 respectively, resulting from business transformation and capital restructuring in accordance with the rehabilitation plan.
On 25 February 2025, the resolution of the Plan Administrators meeting had approved reduction of par value from 10 baht to 1.30 baht per share to offset accumulative accounting loss. Together with net profit gained in first quarter this year, THAI separate financial statements reported retained earnings amounted to 9,555 million baht as of 31 March 2025. Therefore, THAI has ability and may consider dividend payments in the future.
On 8 May 2025, the resolution of the Plan Administrators meeting had approved the registration to dissolve THAI Smile Airways Company Limited (THAI Smile) after the completion of the business restructuring. THAI fully integrated the Airbus A320 aircraft into the THAI fleet and THAI Smile ceased operations since 1 January 2024. THAI earned profit from the loss-making routes formerly operated by THAI Smile. Network Airline strategy, fleet optimization and remarkable cost per unit efficiency improvement contribute to higher ASK, Cabin Factor, yield, revenue from passenger and freight in these routes.
Consequently, for the purpose of achieving the last condition under the Rehabilitation Plan, the resolution of the shareholders’ extraordinary general meeting had appointed a new board of directors on 18 April 2025 and the change of board of directors was registered with the Department of Business Development, the Ministry of Commerce on 22 April 2025. In addition, THAI filed the completion of the Rehabilitation Plan to the Central Bankruptcy Court on 28 April 2025. Currently, the completion of the Rehabilitation process is under the Central Bankruptcy Court’s consideration. The hearing is scheduled on 4 June 2025 at 9.00 hours. Further updates will be reported.
