Thai Airways to report 90% plummet in net profit in 3Q

Thai Airways is expected to report a 90% plummet in net profits from 2Q2010 to THB154 million (USD5.1 million) in 3Q2010, on the back of foreign exchange losses and a THB445 million (USD14.8 million) write-off of spare parts and inventory, according to DBS Vickers Securities (The Nation, 28-Oct-2010). In 3Q2010, the carrier reported a 0.8 ppt year-on-year increase in load factor to 74.7% while yield rose 5.3% to USD 6.67 cents. According to the securities house, 4Q2010 results for Thai Airways are expected to be better as the peak season in tourism commences. Tisco Securities forecast Thai Airways to return to operating profitability during the quarter with an operating profit of THB3,540 million (USD118.1 million), compared with an operating loss of THB1,250 million (USD41.7 million) in the previous corresponding period.