Thai Airways International Public Company Limited (SET: THAI) has reported a resilient financial performance for the first quarter of 2026, managing to grow its bottom line despite a slight dip in operating revenue and significant global economic pressures.
For the quarter ended March 31, 2026, the airline posted a net profit of THB 10,107 million, representing a 2.7% increase over the THB 9,839 million recorded during the same period in 2025. Earnings per share rose accordingly to 0.36 THB, up from 0.35 THB a year earlier.
The profit growth came despite total operating revenues (excluding one-time items) falling 1.2% to THB 51,029 million. This decline was primarily driven by the core transportation segment; passenger and excess baggage revenue dropped 2.0% to THB 42,340 million. Management attributed this to lower overall traffic and production, influenced by the suspension of certain routes and seat retrofitting projects. However, the revenue from other businesses—including catering and ground services—provided a bright spot, surging 12.0% to THB 3,224 million due to an increase in customer airline flights.
A key factor in maintaining profitability was a disciplined reduction in outgoings. Total operating expenses (excluding one-time items) decreased 1.8% to THB 37,282 million. Most notably, aircraft fuel expenses plunged 10.7% to THB 11,347 million. While average fuel prices rose slightly, the airline benefited from lower production and the appreciation of the Thai Baht against the US Dollar, which made fuel purchases more economical.
The airline’s financial position was further supported by a 14.2% reduction in finance costs, which fell to THB 2,987 million following the conversion of several aircraft leases into purchase agreements. These gains were partially offset by a net loss on foreign exchange rates of THB 1,021 million, largely due to the Baht’s year-end depreciation against the Euro and Yen.
Despite these fluctuations, THAI’s EBITDA rose 4.9% to THB 17,548 million, reflecting a stable operational core as it navigates ongoing geopolitical tensions in the Middle East.
As of March 31, 2026, THAI had 80 aircraft in operations and 4 aircraft unused in operations. The total operational aircraft consisted of 11 company-owned aircraft and 69 aircraft under lease agreements.
