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Thai Airways widens quarterly loss to $363.1 million, slow cargo blamed
THAI Airways has reported a second-quarter loss of THB12.8 billion (US$363.1 million), widened from a year-on-year loss of THB7.7 billion, reported DC-area Air Transport World.
Quarterly weakness in cargo demand was a major factor. Thai's cargo volume was down 23 per cent year on year, dwarfing the 9.3 per cent decline in capacity. Cargo yield dropped 6.6 per cent and load factor fell 10 points to 58.3 per cent.
Airlines in the region have been largely pessimistic regarding the cargo outlook. Thai Airways said Asia-Pacific airlines face a "big challenge from the latest recession of air cargo business".
Stronger passenger demand offset the cargo decline, resulting in Thai reducing its operating loss 46 per cent to THB3.3 billion. But significant special items widened the net loss.
Foreign exchange losses totalled THB3.7 billion and employee termination benefits also cost THB3.7 billion. The airline has cut 1,400 positions as part of its fleet and network streamlining.
Quarterly weakness in cargo demand was a major factor. Thai's cargo volume was down 23 per cent year on year, dwarfing the 9.3 per cent decline in capacity. Cargo yield dropped 6.6 per cent and load factor fell 10 points to 58.3 per cent.
Airlines in the region have been largely pessimistic regarding the cargo outlook. Thai Airways said Asia-Pacific airlines face a "big challenge from the latest recession of air cargo business".
Stronger passenger demand offset the cargo decline, resulting in Thai reducing its operating loss 46 per cent to THB3.3 billion. But significant special items widened the net loss.
Foreign exchange losses totalled THB3.7 billion and employee termination benefits also cost THB3.7 billion. The airline has cut 1,400 positions as part of its fleet and network streamlining.
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