THAI announces financial results for three and nine-month periods

Mr. Piyasvasti Amranand, President of Thai Airways International Public Company Limited, said that THAI incurred loss before tax and foreign currency exchange of the third quarter for fiscal year 2009 (July 1 - September 30, 2009) at THB 1,127 million, compared with loss of the same period last year at THB 4,366 million. The foreign currency exchange loss was due to the appreciation of Euro and Japanese yen currencies, whereby the net loss was incurred at the amount of THB 4,034 million during the third quarter of 2009.

The world economic conditions recovered during the third quarter while the Company's financial situation improved and an adjustment was made to the corporate strategies, which resulted in a 15.8% increase in Revenue Passenger-Kilometer (RPK) and 14.7% increase in Revenue Freight Ton- Kilometer (RFTK) compared to the second quarter of this year. Consequently, THAI's Cabin Factor increased from 66.2% in the second quarter to 73.9% and Freight Load Factor increased from 48.5% to 53.8%. However, due to high competition, THAI's passenger yield excluding fuel surcharge decreased to 1.94 Baht/RPK in the third quarter (July 1 - September 30, 2009) compared to 1.96 Baht/RPK in the second quarter and 2.34 Baht/RPK during the third quarter last year.

In addition, the average fuel price during the third quarter increased from the first half year of 2009. During the third quarter of 2009 (July 1 - September 30, 2009), the Company incurred a loss before tax and foreign currency exchange in the amount of THB 1,127 million.

The Company's net losses for the nine-months of fiscal year 2009 (January 1 - September 30, 2009) totaled THB 1,569 million or 0.92 Baht per share, which was lower than the net loss of THB 6,612 million or 3.89 Baht per share posted last year. EBITDA was THB 17,978 million, which was higher than last year's EBITDA of THB 11,769 million.

As of September 30, 2009, THAI and its subsidiary's total assets were THB 263,838 million, an increase of THB 4,304 million from December 31, 2008. The Company's total liabilities were THB 219,524 million, an increase of THB 5,872 million from December 31, 2008. The Company's shareholders' equity amounted to THB 44,314 million, a decrease of THB 1,568 million compared to year-end 2008.

Even though the Company incurred a loss in the third quarter, but it achieved significant passenger load, cargo and commercial mail load, cabin factor, and improved freight load factor on a regular basis in October 2009 when compared to September 2009. In October 2009, the Company's RPK improved by 8.2%, RFTK improved by 8.5%, cabin factor improved from 74.4% to 75.3% and freight load factor improved from 58.8% to 59.4%.