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Thai Airways targeting EBIT of USD130 million in 2010; JAL downgraded by S&P


Thai Airways, in its Strategic TG 100 Plan, stated the carrier plans to increase revenues by 21% to USD5.8 billion in 2010, with EBIT of approximately USD130 million and an EBITDA target of approximately USD965 million.

The Board has also approved the refurbishment of 12 B747 aircraft, utilised predominantly on high-revenue generating services to Europe.

Thai Airways Strategic TG 100 Plan for 2010

Financial/traffic targets



USD5.8 billion, + 20.7% year-on-year


USD129.7 million


USD965 million

Capacity (ASKs)


Traffic (RPKs)


Average load factor (%)


Freight production (ADTK)


Freight revenue


JAL shares continue downward spiral following downgrade by S&P’s

Japan Airlines Corp’s long-term corporate credit rating was meanwhile cut from “CC” to “selective default” by Standard & Poor’s, which stated the carrier missed payments on some of its bank loans.

The ratings agency stated it saw the airline's agreement with creditors to suspend some repayments (reached on 20-Nov-2009), as part of its debt restructuring efforts as a default.

According to S&P, “based on agreement with these creditors, the company then ceases payments on certain obligations for a period of negotiation. We understand that this agreed suspension of debt payments may not legally constitute a default. Based on Standard & Poor’s criteria, however, we view it as a default”.

JAL shares have tumbled 57% this year in Tokyo trading, the worst performance in the Nikkei 225 Stock Average. 

Hainan Airlines pax up 20%; HNA Group revenue expected to increase 54% in 2009

Also in North Asia, Hainan Airlines’ shares were 0.5% weaker yesterday, despite HNA Group Chairman, Chen Feng, stated he expects the group (including its aviation, logistics and finance companies) to increases total revenue by 54% in 2009. He added that Hainan Airlines handled 15.0 million passengers in the ten months to Oct-2009, a 20% year-on-year increase.

Taiwan-based airlines to raise fuel surcharges

Also in North Asia, shares in EVA Air and China Airlines gained 7.0% and 3.0% yesterday, after Taiwan’s Civil Aeronautics Administration (CAA) stated Taiwan-based airlines would raise fuel surcharges by 17% from 15-Dec-2009, following an increase in jet kerosene prices.

The fuel levy on short-haul routes will be raised from USD15 to USD17.50 per sector, while long-haul services will be increased from USD39 and to USD45.50. 

Elsewhere, Jet Airways’ shares soared 8.7%, while on the other end of the spectrum, shares in China Eastern and Air New Zealand were down by 4.6% and 4.0%, respectively.

Asia Pacific selected airlines daily share price movements (% change): 02-Dec-09

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