THAI Airways back in the black
National carrier THAI Airways was back in the black in 2022, reporting an operating profit of over $200 million as internal restructuring and resurgent tourism helped accelerate the airline’s turnaround.
THAI Airways was considered one of the premier airlines in Asia and the Pacific for many years because of its “Smooth as Silk” service. But in recent years, like many major airlines, price competition from the growing number of budget and economy airlines has elevated. As part of its strategy, THAI Airways purchased some smaller carriers to have a presence in that segment of the market.
It has taken a while to go through a restructuring program. It is scheduled to graduate from that regime in 2024, and the positive results in 2022 have many in the industry confident the carrier will achieve that goal.
Despite higher fuel costs, a four-fold increase in revenues allowed the airline to finish the year with a modest but substantial profit. At just over 9 million head counts, the number of passengers was five times higher than the previous year, while earnings from ticket sales and baggage fees multiplied 13 times.
One consequence of the cost-trimming required by restructuring was the elimination of several routes. But as the company began getting its house in order, it has started to revive some destinations.
THAI Airways executives said that they plan to continue resuming more routes and increasing flights this year. To tap into the lucrative China market, direct flights between Bangkok and five cities in China, including Beijing and Shanghai, are set to resume in March.
The airline also plans to increase flights to Japan’s Haneda and Narita airports, serving Tokyo, and Kansai International Airport in Osaka.
Photo courtesy of https://ir.thaiairways.com/