Thai Airways reported a net profit in the first nine months of 2021. The positive financial outcome was largely attributed to asset sales and financial gain from debt restructuring.
In the first nine months of 2021, Thai Airways posted a net profit of 50.1 billion baht ($1.5 billion), an increase compared to a net loss of 49.5 billion baht ($1.5 billion) during the same period in 2020.
Thai Airways disclosed that out of 78.6 billion baht of its total revenues, 60.7 billion baht ($1.9 billion) came only from the airline’s debt restructuring measures. The Central Bankruptcy Court of Thailand gave the final go-ahead for Thai Airways’ rehabilitation plan on June 15, 2021.
The court-supervised rehabilitation consists of major business and financial reorganization. The business reorganization plan includes a revenue increase plan, expense reduction, work process adjustment, and organizational restructuring to sustainably increase efficiency. Financial reorganization, on the other hand, includes debt and capital restructuring.
According to rehabilitation law, Thai Airways must fully implement the rehabilitation plan in five years once it is submitted and approved by the Court, unless the Court grants an order for extension.
The rehabilitation plan was seen as fundamental for the airline that has been reporting losses since 2013.
Currently, the airline is reportedly aiming to sell older aircraft and reduce workforce by a third to cut costs. The airline plans to reduce its number of workers from 21,300 down to 14,500 by December 2022.
