BANGKOK - Thai Airways International, the country's biggest airline, reported its most profitable quarter in more than six years as it flew more passengers and booked gains from a stronger baht.
Net income surged by a stronger-than-expected 78 per cent to 6.2 billion baht ($265 million), or 3.65 baht a
share, in the three months ended March from a restated 3.49 billion baht, or 2.06 a share, the airline has told the Thai Stock Exchange. Sales rose 19 per cent to 46.1 billion baht.
Apinan Sumanaseni, president since May 1, has taken over a carrier that's flying more European tourists to Thailand, while a 40 per cent increase in surcharges on June 1 will shield earnings from rising fuel costs, which make up 35 per cent of the airline's operating expenses.
The baht gained 5.5 per cent against the US dollar in the quarter, cutting Thai Airways' overseas debt.
The airline said its fiscal second-quarter profit included a foreign exchange gain of 3.86 billion baht.
It flew 3.13 million passengers in the first two months of 2006, an increase of almost 12 per cent from last year. March passenger data hasn't been released.
Thai Airways filled 76.7 per cent of seats in the quarter, 6.1 percentage points more than the same period in 2005.
The company's shares have gained 11 per cent this year, making it the fourth-best performer among the 10-member Bloomberg Asia-Pacific Airlines Index.
The second-quarter profit was the biggest since the first quarter of 2000, when the carrier reported 7.7 billion baht in net income.
"Thai Airways' earnings have improved steadily as the additional surcharges have helped mitigate rising fuel costs," said Sukhbir Khanijoh, an analyst at Trinity Securities in Bangkok. "The number of overseas tourists is also back to normal levels after the large impact of the tsunami" which roiled Southeast Asia's tourism industry last year.
- BLOOMBERG
