Thai Airways, Bangkok Airways, Nok Air & Thai AirAsia incur 3Q losses as Thailand slowly recovers

Thailand continues to be an extremely challenging market with all four of Thailand's main carriers reporting losses for 3Q2014. Combined losses in 3Q2014 at Thai Airways, Bangkok Airways, Nok Air and Thai AirAsia were about USD150million on revenues of about USD1.85 billion, continuing a negative trend which started in 2Q2014.

Thailand's international market has been significantly impacted by political instability, which started in late 2013 and reached its apex in 2Q2014. Meanwhile the domestic market has been impacted by overcapacity, driven by rapid expansion from Thailand's three low-cost carriers and a slowdown in the local economy.

The pace of recovery in Thailand's economy and tourism sector has so far been slower than anticipated. There should be some improvement in 4Q2014 but a full recovery is not likely until at least 2015.