BANGKOK – Thai Airways International (THAI) announced the successful completion of the sale of its entire fleet of 18 retired aircraft, comprising six Boeing 777-200s, six Boeing 777-300s, and six Airbus A380s.
THAI CEO Chai Eamsiri confirmed on May 12 that sales agreements have been signed for all 18 aircraft. The airline has already completed the paperwork for six of the aircraft, with the remaining 12 expected to be finalized shortly.
The sale of the aircraft resulted in a non-cash impairment charge of 3.33 billion baht in THAI’s Q1 2024 financial results. This has significantly impacted the airline’s net profit for the quarter.
Despite the impairment charge, THAI reported a 10.7 percent increase in total revenue for Q1 2024, at 45.9 billion baht, compared to the same period in 2023. This growth was primarily driven by strong passenger traffic and higher yields, particularly on European, Australian, and Japanese routes.
Total expenses for the quarter were 34.88 billion baht, up 6.4 billion baht (22.5 percent) from the same period last year. This increase was driven by higher production and traffic volumes, increased number of flights and destinations, and higher passenger numbers. The depreciation of the baht, as well as higher ground handling fees and raw material prices, also contributed to the increase in expenses.
Specifically, the loss from foreign exchange rate fluctuations amounted to 5 billion baht, and the impairment of aircraft and right-of-use assets and revolving aviation equipment was over 3 billion baht. These two items totaled 9 billion baht, resulting in a net profit of only 2.42 billion baht, a decrease of 80.7 percent from the same period last year.
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