Thai Airways Reports Significant Financial Developments Amid Rehabilitation
Fiscal year 2024 results driven by one-time debt restructuring as airline moves towards rehabilitation exit
Thai Airways International (THAI) has assured its stakeholders that the substantial loss reported for fiscal year 2024 is a result of a one-time debt-to-equity conversion and will not impede the airline's operational performance or its planned exit from rehabilitation.
This statement followed the airline's financial performance report released to the Stock Exchange of Thailand.
During a press conference, Piyasvasti Amranand, the chairman of the rehabilitation plan administrator for Thai Airways, emphasized that the airline's total revenue, excluding exceptional items, increased to 187.989 billion baht in 2024, marking a 16.7% rise compared to 161.067 billion baht in 2023. Additionally, the operating profit before financial costs, again excluding one-time items, grew by 3.2% to 41.515 billion baht, resulting in an operating profit margin before financial costs (EBIT Margin) of 22.1%, which exceeded projections outlined in the rehabilitation plan.
Despite these operational successes, THAI's consolidated financial statements reflected a loss of 26.901 billion baht for 2024, primarily arising from a one-time accounting loss of 45.271 billion baht linked to the debt-to-equity conversion executed in November 2024. Approximately 40,582 million baht of this loss occurred as creditors executed their conversion rights at prices that fell below fair market value.
Moreover, remaining losses were associated with accelerated debt repayments.
Piyasvasti clarified that these losses are one-off accounting items and do not impact the airline's core operations, affirming the airline's positive equity status post-capital restructuring.
By the conclusion of 2024, THAI reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of 41.473 billion baht, significantly higher than the 20 billion baht threshold mandated by the rehabilitation plan.
Additionally, the airline's equity improved to a positive 45.495 billion baht, a notable recovery from the negative 43.352 billion baht recorded in 2023, attributed to operational profits and capital restructuring.
This financial performance supports the airline's progression in the rehabilitation plan and alleviates any concerns of delisting from the Stock Exchange of Thailand, facilitating a return to trading.
As part of the rehabilitation process, an extraordinary general meeting of shareholders is scheduled for April 18, with a record date of March 14, where the appointment of 11 to 12 directors will be discussed.
Current directors, including Piyasvasti Amranand, Chansin Treenuchagron, and Air Chief Marshal Amnat Jeeramaneemai, will be joined by proposed new members such as Lawan Saengsanit and Kulaya Tantitemit.
To address accumulated losses, executives have agreed to reduce the company's share par value from 10 baht to 1.30 baht, resulting in a decrease of registered and paid-up capital from approximately 283.033 billion baht to 36.794 billion baht, minimizing accumulated losses to 180 million baht.
Officials assured that this restructuring will not negatively impact creditors or the company itself and aims to facilitate future dividend payments.
In outlining the airline's strategy for 2025, CEO Chai Eamsiri announced plans to increase service frequencies with the addition of nine new aircraft in the second half of the year.
While there are no new destinations planned, significant boosts in flight frequencies, particularly to India, are anticipated, where weekly flights to Mumbai are set to rise from 11 to 14. Increases in frequency are also expected for routes to Germany, Pakistan, and various Western European destinations.
Flight frequencies to China will see adjustments; however, recovery in passenger travel from this market has not met expectations, as Chinese revenue currently accounts for only 1-2% of THAI's total income.
To diversify revenue and reduce market dependence, Thai Airways is shifting its focus from point-to-point routes to network sales, aiming to elevate network sales revenue to 40% in the future.
THAI and its subsidiaries operate a fleet of 79 aircraft, including 59 widebodies and 20 narrowbodies.
The winter 2025 flight schedule will continue to provide services to 64 destinations, consistent with 2024, while increasing the total number of weekly flights to 883, aiming to meet rising passenger demand on key routes.
This statement followed the airline's financial performance report released to the Stock Exchange of Thailand.
During a press conference, Piyasvasti Amranand, the chairman of the rehabilitation plan administrator for Thai Airways, emphasized that the airline's total revenue, excluding exceptional items, increased to 187.989 billion baht in 2024, marking a 16.7% rise compared to 161.067 billion baht in 2023. Additionally, the operating profit before financial costs, again excluding one-time items, grew by 3.2% to 41.515 billion baht, resulting in an operating profit margin before financial costs (EBIT Margin) of 22.1%, which exceeded projections outlined in the rehabilitation plan.
Despite these operational successes, THAI's consolidated financial statements reflected a loss of 26.901 billion baht for 2024, primarily arising from a one-time accounting loss of 45.271 billion baht linked to the debt-to-equity conversion executed in November 2024. Approximately 40,582 million baht of this loss occurred as creditors executed their conversion rights at prices that fell below fair market value.
Moreover, remaining losses were associated with accelerated debt repayments.
Piyasvasti clarified that these losses are one-off accounting items and do not impact the airline's core operations, affirming the airline's positive equity status post-capital restructuring.
By the conclusion of 2024, THAI reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of 41.473 billion baht, significantly higher than the 20 billion baht threshold mandated by the rehabilitation plan.
Additionally, the airline's equity improved to a positive 45.495 billion baht, a notable recovery from the negative 43.352 billion baht recorded in 2023, attributed to operational profits and capital restructuring.
This financial performance supports the airline's progression in the rehabilitation plan and alleviates any concerns of delisting from the Stock Exchange of Thailand, facilitating a return to trading.
As part of the rehabilitation process, an extraordinary general meeting of shareholders is scheduled for April 18, with a record date of March 14, where the appointment of 11 to 12 directors will be discussed.
Current directors, including Piyasvasti Amranand, Chansin Treenuchagron, and Air Chief Marshal Amnat Jeeramaneemai, will be joined by proposed new members such as Lawan Saengsanit and Kulaya Tantitemit.
To address accumulated losses, executives have agreed to reduce the company's share par value from 10 baht to 1.30 baht, resulting in a decrease of registered and paid-up capital from approximately 283.033 billion baht to 36.794 billion baht, minimizing accumulated losses to 180 million baht.
Officials assured that this restructuring will not negatively impact creditors or the company itself and aims to facilitate future dividend payments.
In outlining the airline's strategy for 2025, CEO Chai Eamsiri announced plans to increase service frequencies with the addition of nine new aircraft in the second half of the year.
While there are no new destinations planned, significant boosts in flight frequencies, particularly to India, are anticipated, where weekly flights to Mumbai are set to rise from 11 to 14. Increases in frequency are also expected for routes to Germany, Pakistan, and various Western European destinations.
Flight frequencies to China will see adjustments; however, recovery in passenger travel from this market has not met expectations, as Chinese revenue currently accounts for only 1-2% of THAI's total income.
To diversify revenue and reduce market dependence, Thai Airways is shifting its focus from point-to-point routes to network sales, aiming to elevate network sales revenue to 40% in the future.
THAI and its subsidiaries operate a fleet of 79 aircraft, including 59 widebodies and 20 narrowbodies.
The winter 2025 flight schedule will continue to provide services to 64 destinations, consistent with 2024, while increasing the total number of weekly flights to 883, aiming to meet rising passenger demand on key routes.