Thai budget carriers' losses mount, shares tumble

PUBLISHED ON FRI, AUG 10, 2018 5:37 PM

Thai budget carriers' losses mount, shares tumble

 

800x800.jpg

FILE PHOTO: A Nok Air aircraft, painted like a duck, prepares to take off at Don Mueang International Airport in Bangkok, Thailand, June 29, 2016. Picture taken June 29, 2016. PREUTERS/Chaiwat Subprasom/File Photo

 

BANGKOK (Reuters) - Thailand's low-cost carriers saw share prices falling nearly 7 percent in morning trade in Bangkok on Friday after they reported losses due to tough competition and higher fuel costs.

 

Asia Aviation Pcl , AirAsia Group Bhd's partner in Thai AirAsia, reported a loss of 306 million baht ($9.21 million) for its April-June period versus a profit of 170 million baht a year ago, sending its shares down over 4 percent.

 

Losses at rival Nok Air Pcl widened to 830 million baht in the quarter versus losses of 650 million baht a year ago. Nok's share prices were trading 7 percent lower.

 

Despite Thailand's tourism boom, its airlines have struggled due to higher jet fuel prices, a drop in passengers from off-peak travelling and stiff competition.

 

The country expects tourist arrivals to reach 37.5 million this year, up 6 percent from 2017.

 

Nok Air, the budget arm national carrier Thai Airways International Pcl , saw revenue dropping 1 percent to 3.35 billion baht.

 

Thai AirAsia is planning to add more routes between India and Southeast Asia in the next quarter to minimise the risk of depending on a major customer base in the region, the airline said.

 

"Higher fuel costs have been a challenge with fuel being a major operating cost for any airlines," Thai AirAsia Chief Executive Santisuk Klongchaiya said in a statement.

 

Analysts say tourist seasonality next quarter should help recovery and that plans to introduce a fuel surcharge could partly offset higher jet fuel prices.

 
reuters_logo.jpg
-- © Copyright Reuters 2018-8-10
latest news from Thailand

ETDA launches Institute of Future Economy and Internet GovernanceBy The Nation  The Electronic Transactions Development Agency (ETDA) has launched the Institute of Future Economy and Internet Governance as a platform that focuses on the learning process and transforms into policy recommendations...

READ MORE...

JD Sports to open first store in Thailand at IconsiamBy The Nation  JD Sports will open its first store in Thailand on November 9 at Iconsiam, with a wide range of sports apparel including leading brands Nike, adidas, North Face and Vans. The store will offer state-of-the-art interactive...

READ MORE...

Prizefighter starts life as police officerBy Pongpat Traipipat The Nation File photo: Pol Lance Corporal Wisaksil Wangek or Chao Laem Sisaket Nakhonluang. // The Nation photo Pol Lance Corporal Wisaksil Wangek – better known as Thai professional boxer and two-time WBC super flyweight champion...

READ MORE...

Nine major dams at less than 60% capacity  BANGKOK, 17th October 2018 (NNT) - The Smart Water Operation Center (SWOC) has cited the need to manage water consumption more carefully as the quantity of water in nine major dams is now less than expected. According to the SWOC, dams containing less...

READ MORE...
sponsors