Thai Airways posts largest quarterly loss in 11 years

Shares in Thai Airways fell by 4.6 per cent on Thursday following the national carrier posting its largest quarterly loss in more than a decade.

Reasons cited for the loss included the soaring cost of jet fuel and a currency loss. For the period from April through June, the airline lost US$276 million, the company reported late on Wednesday. This constituted the biggest loss during any one quarter since the 1997 Asian financial crisis.

The drop of 4.6 per cent in the airline’s share price drove it down to 16.50 baht, or US$0.49 during Thursday’s trading.

After the earnings statement was released, the president of the flagship carrier, Apinan Sumanaseni, told reporters of The Nation newspaper that the airline is planning to offer early retirement to 400 of its employees during the second half of 2008, as one means of reducing operating costs.

The early retirement plan bears a cost to the carrier, with estimates at about US$21 million, according to the newspaper’s report.

Thai Airways will also reduce its investment budget by US$89 million in the last six months of this year, and also reduce the number of direct flights it operates to Los Angeles, in order to stem losses, according to Apinan.

The Thai carrier has also suspended its direct service between Bangkok and New York.

www.thaiair.com