Thai Airways International Public Company Limited (THAI) has announced its 3Q18 consolidated financial statement through the Stock Exchange of Thailand as follows:
THAI reported ฿3.7 billion loss of profit in 3Q18 when compared to the same period last year, and ฿4 billion loss in nine months YoY.
The third quarter of 2018 was normally a low-season period; however, competition in the aviation industry was still intense with the rising world oil prices causing the reduction of traveling demand while operating cost increased.
The loss was mainly due to higher fuel and oil expense, amount of ฿15,391 million or represented 29.7% of total expenses, increased by ฿3,499 million (29.4%) due to 41.0% increasing of average jet fuel price compared to the same period last year.
Non-fuel operating expense was ฿35,421 million, or ฿1,862 million (5.5%) higher than last year due to aircraft repair and maintenance cost and lease of aircraft and spare parts.
Also, the trend of expansion in global aviation industry had decreased compared to last year. According to the International Air Transport Association (IATA), passenger traffic growth in the 9 months of this year was 6.7%, down from 7.7% in the same period last year.
Nevertheless, the depreciation of the US dollars to Thai Baht somewhat caused the lower expense in Baht term. Moreover, fuel hedging gain mitigated lower fuel expense nearby ฿702 million.
Gains on foreign currency exchange was ฿299 million consisted of realized loss of ฿198 million and ฿497 million unrealized gain resulting from revaluation of foreign currency loans for assets and liabilities, especially the appreciation of Thai Baht against the US Dollar, Japanese Yen and Euro as of September 30, 2018 compared to June 30, 2018.