Thai Airways 2016 Outlook: regional growth & focus on revenue management. Profitability a challenge

Thai Airways is planning modest expansion for 2016 as the airline attempts to complete a turnaround and restore profitability. The group's fleet will grow by only two aircraft in 2016, but capacity increases are expected through aircraft utilisation improvements, both at the mainline airline and at the full service regional subsidiary, Thai Smile.

Thai has been implementing a transformation plan over the last year, with a focus on cutting the size of its workforce, its fleet, and the long haul network. Yet from a capacity standpoint Thai is again approaching pre-restructuring levels, and has reversed most of its cuts to Western Europe.

The group is now growing its regional international network, mainly using Thai Smile. Thai Smile plans to launch Siem Reap in Feb-2016, and plans to add new secondary destinations in mainland China in 2016.