Thai Airways International (SET: THAI) is grappling with a severe operational crisis following large-scale ground service disruptions at Suvarnabhumi Airport in late September 2026 by the Thai flagship carrier.
According to the statement, the disruption, brought on by severe flooding in Bangkok, sharply reduced available ground staff despite efforts by company leadership to mobilize vehicles for worker transport. CEO Chai Eamsiri conceded that many employees were simply unable to leave their flooded homes.
The shortage triggered widespread baggage accumulation, with over 5,600 pieces left stranded across 52 flights, and led to a complete breakdown in on-time performance—every flight over two days was delayed. Flight cancellations reached approximately 120 across September 28-29. In an unprecedented move, the airline temporarily halted all cargo operations at its main hub beginning October 1, aiming to reallocate staff to passenger services.
The magnitude of the crisis prompted Thai Airways’ board to intervene directly. Chairman Lavaron Sangsnit instructed the CEO to assume personal control of ground operations and required continual progress reports. The board also sought the assistance of external agencies—from Thailand Post and Airports of Thailand (AOT) to military units—to fill labor shortages.
Following such circumstances, questions have been raised as to why, as a member of the global Star Alliance and Thailand’s flag carrier, the airline lacked contingency protocols or reserve staff to buffer against weather-related disruptions. The official explanation, blaming the weather and absenteeism, further eroded public trust in management’s preparedness and decision-making. Meanwhile, other airlines operating in Bangkok have seen far less impact from the flood.
The crisis also drew attention to contractual misalignments in ground handling services. Under longstanding concession agreements with AOT, Thai Airways faces no financial penalties for baggage delays under its main service contract. However, strict penalty clauses in contracts with third-party airlines forced the company to prioritize those clients’ luggage—leaving its own passengers’ bags behind.
Financial liabilities for compensation, rebooking, and lost revenues from flight cancellations are expected to impact Thai Airways’ earnings in the near term. While there are currently no updated views from financial analysts or brokerages, the market is awaiting in-depth analyses and profit forecast revisions.
As of now, the IAA consensus gives Thai Airways a target price of THB 7.56 per share. This target was set prior to the operational fallout and is based on earlier, more optimistic profit projections. The current situation raises uncertainty over whether the company can maintain operational and revenue performance adequate to support this valuation. The share price as of the afternoon session on September 30 was at THB 5.80 per share, a 4.13% drop from the previous close.
With the full financial impact of recent disruptions yet to be quantified—potentially to be included in 4Q26—there is mounting anticipation that analysts may revise their forecasts should compensation costs, lost revenues, and other liabilities materially erode Thai Airways’ profit outlook. The key issue moving forward will be how quickly management can address operational vulnerabilities and restore passenger confidence.
