Mitihoon – In 2024, Thai Airways International Public Company Limited (THAI) reported the total revenue (excluding one-time transactions) at 187,989 million baht, or equivalent to an increase of 16.7 % when compared to 161,067 million baht in 2023. The operating profit (EBIT) (excluding one-time transactions) was 41,515 million baht, or equivalent to an increase of 3.2% when compared to 40,211 million baht in 2023. Specifically, the EBIT margin (excluding one-time transactions) for 2024 was at 22.1%, higher than what was estimated in the Rehabilitation Plan. According to the 2024 consolidated financial statement, THAI reported 26,901 million baht net loss due to loss incurred by one-time transactions pursuant to debt conversion in accordance with the Rehabilitation Plan, which was completed in November 2024, of 45,271 million baht. Majority of which was an accounting loss of 40,582 million baht that was caused by creditors’ debt conversion at the conversion price as specified by the Rehabilitation Plan which is lower than fair value; while the rest were debt conversion of creditors whose debts were paid earlier than scheduled. These transactions were one-time accounting loss and do not affect THAI’s operations and its completion of the rehabilitation processes as post-capital restructuring shareholders’ equity remains positive.
As of year end 2024, THAI reported 41,473 million baht EBITDA after deducting aircraft cash lease for the 12-month separate financial statements, which was higher than 20,000 million baht as conditioned in the Rehabilitation Plan. Shareholders’ equity in the separate financial statement turned positive at 45,495 million baht, comparing to negative of 43,352 million baht in 2023, mainly due to operating profit in the past twelve months and capital restructuring as part of the rehabilitation processes. This led to THAI being able to achieve one of the conditions under the Rehabilitation Plan; therefore, the suspending for the trading of THAI stock is no longer effective. After the rehabilitation processes are completed, THAI stock will resume trading on the Stock Exchange of Thailand (SET).
Consequently, for the purpose of achieving the last condition under the Rehabilitation Plan, the meeting of the Plan Administrators has approved the scheduling Extraordinary General Meeting of Shareholders on 18 April 2025, which will be held in accordance with the provision under the Rehabilitation Plan and approved the date for determining the names of the shareholders entitled to attend and vote at such meeting (Record Date) to be 14 March 2025. The shareholders’ meeting is to consider and approve that the number of THAI directors shall consist of 11 directors or 12 directors (depending on the number of directors approved by the shareholders’ meeting), which includes 3 current directors including Mr. Piyasvasti Amranand, Mr. Chansin Treenuchagron and Air Chief Marshal Amnart Jeeramaneemai and 8 new directors or 9 new directors (depending on the number of directors approved by the shareholders’ meeting). The nominated persons to be approved by the shareholders’ meeting to be the new THAI directors consist of 6 new directors including Mr. Lavaron Sangsnit, Dr. Kulaya Tantitemit, Mr. Chakree Bamrungwong, Police General Thatchai Pitaneelaboot, Mr. Chartchai Rojanaratanangkule and Mr. Chai Eamsiri and 3 new independent directors including Mr. Naprakorn Thanasuvankasem, Mr. Yanyong Detpiratmongkol and Mr. Sumrid Sumneing. In this regard, after obtaining shareholders’ approval and permission from the Central bankruptcy Court, THAI will proceed to register the changes in the number of directors and the appointment of new directors and subsequently proceed to file the completion of the Rehabilitation Plan to the Central Bankruptcy Court accordingly.
Additionally, the meeting of the Plan Administrators board approved the decrease of THAI’s capital by reducing the par value from 10.00 baht per share to 1.30 baht per share to offset THAI’s accumulated losses, bringing the accumulated losses close to zero. As a result, the Company’s registered capital and paid-up capital will decrease from 283,033 million baht to 36,794 million baht, bringing the accumulated losses to (180) million baht. The capital reduction by this method does not cause any loss to creditors or THAI and does not affect the total shareholders’ equity under the financial statements of THAI. Additionally, this does not affect the value of THAI or the value per share since the value per share is not determined by the par value of shares. Also, it is the opportunity for THAI to pay dividends to its shareholders, including creditors from debt restructuring, and make THAI more attractive to investors after the trading of THAI resumes. Additionally, if THAI wishes to raise additional funds by issuing new shares to be used in business operations or to pay off debts according to the business rehabilitation plan in the future, THAI can proceed without being hindered by accumulated losses, which is merely accounting figures.
Operational Performance Results for the Year Ended 31 December 2024
THAI and its subsidiaries reported total revenue (excluding one-time transactions) was 187,989 million baht, or equivalent to an increase of 26,922 million baht or 16.7 % when compared to 161,067 million baht in 2023. Total passengers was 16.14 million, higher than the same period in 2023 by 2.38 million. Cabin Factor decreased from 79.7% in the same period last year to 78.8%. An increase in revenue was mainly due to recovery in aviation and tourism sectors and significantly rising passenger travel demand. THAI expands fleet, flight frequencies, and destinations in response to the aforementioned growth.
Total expenses (excluding one-time transactions) amounted to 146,474 million baht, an increase of 21.2% from 120,856 million baht in 2023, mainly due to expenses variable to higher production and transportation volume, namely, fuel price which was 50,474 million baht or 34.5 % of total expenses (excluding one-time transactions). THAI and its subsidiaries reported an operating profit (excluding one-time transactions) of 41,515 million baht, higher than the same period last year which was 40,211 million baht.
THAI and its subsidiaries reported financial cost under TFRS 9 standard of 18,781 million baht and one-time transactions totaling 49,260 million baht in expenses resulting, mostly from loss from debt restructuring in November 2024 pursuant to the Rehabilitation Plan of 45,271 million baht. These transactions are one-time due to accounting and do not affect the Company’s operations and its completion of the rehabilitation processes as post-capital restructuring shareholders’ equity remains positive.
THAI and its subsidiaries reported a net loss of 26,901 million baht in the consolidated financial statement while it reported 28,123 million baht of net profit last year. The EBITDA after deducting aircraft cash payment (Power by the Hours) was reported at 41,839 million baht, a decline of 1,036 million baht from last year.
As of 31 December 2024, the total assets of THAI and its subsidiaries totaled 292,508 million baht, an increase of 53,517 million baht or 22.4% from 31 December 2023. The total liabilities totaled 246,919 million baht, a decrease of 35,214 million baht or 12.5% from 31 December 2023. Shareholders’ equity of THAI and its subsidiaries amounted to 45,589 million baht, an increase of 88,731 million baht from 31 December 2023, mainly due to the positive operational performance results and capital restructuring pursuant to the Rehabilitation Plan.
Currently, THAI and its subsidiaries’ fleet in operation includes 79 aircraft, consisting of 59 widebodies and 20 narrowbodies. Under the winter 2025 flight schedule, THAI plans to operate flights to 64 destinations, similar to in 2024, while the total number of flights will be 883 per week, an increase of 40 weekly flights from 843 weekly flights in 2024. This expansion is to accommodate passenger demand on popular routes, as well as to support continuously growing travel trends. THAI continues to expand its network to ensure sufficient flight coverage in line with route plans, flight volume, and passenger demand, enabling the company to optimize resource management according to its business strategy and achieve sustainable success in the future.
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