Thai Airways plans flat capacity for 2014 in bid to boost profitability amid challenging conditions

Thai Airways plans to take a break from capacity growth in 2014 as the group battles challenging market conditions. But demand, which has been impacted in recent months by the civil unrest in Bangkok, is expected to recover in 2H2014 and Thai Airways' medium to long-term outlook should see improvements as its new multi-brand strategy beds down.

The carrier has temporarily suspended several flights in 1H2014 in response to weakening demand. The suspended flights are expected to be again operating by 3Q2014. Thai Airways also plans to add capacity in some markets in 2H2014, including China and Japan, but is not planning to add any new destinations this year.

Thai Airways' mainline capacity will drop slightly in 2014 as the fleet shrinks by six aircraft. Thai Smile capacity will increase significantly on a low base, offsetting the decline at Thai Airways as total group capacity will be flat.