Thai Airways outlook 2018: capacity growth slows as focus shifts to product improvements

Thai Airways plans to slow its capacity growth in 2018 after growing by more than 5% in 2017, for only the second time in a decade. The parent airline expects annual ASK growth of up to 3% over the next few years, including 2018, as it shifts focus to product and profitability improvements.

Thai Airways plans to retrofit its 777-200ER fleet in 2018 as part of a push to offer lie-flat business class seats across its long haul fleet. Thai Airways is also introducing a new premium product for its regional fleet, which will debut in 2018 on a retrofitted A330-300s.

The group is only expanding its fleet by one aircraft in 2018: five A350s will be delivered, and two 777-200s and two 737-400s will exit the fleet. Thai Airways essentially has to manage with a smaller fleet as several aircraft will be out temporarily during the year for retrofits, including 787-8s, which will receive crew bunks to enable long haul operations.