Thai Airways net profit plunged in Q2

Thai Airways International (THAI) reported a significant decline in net profit for the second quarter of 2026, reporting just 1.54 billion baht in profit compared to 12.13 billion baht in the same period last year. The carrier's total revenue, excluding one-time items, rose to 48.62 billion baht, marking an 8.5% increase year-on-year.

This growth was primarily driven by a 20.3% increase in average passenger yield, which includes fuel and insurance surcharges but excludes excess baggage revenue. However, THAI's total expenses, again excluding one-time items, surged to 44.93 billion baht, a substantial 29.7% rise from the previous year, largely due to surging jet fuel prices caused by Middle Eastern unrest. The average fuel prices jumped by 104.6% compared to the previous year.

Despite the revenue growth, THAI's operating profit before finance costs decreased to 3.69 billion baht, with an operating profit margin before finance costs (EBIT Margin) of 17.5%. Finance costs for the quarter amounted to 3.16 billion baht, with net one-time items as revenue contributing 335 million baht. Consequently, THAI ended the quarter with a net profit of 1.54 billion baht, a stark contrast to the 12.13 billion baht profit reported in the same period last year. The company's EBITDA for Q2 2026 stood at 8.18 billion baht.

As of June 30, 2026, THAI's total assets were valued at 322.08 billion baht, reflecting an 18.03 billion baht increase or 5.9% from the previous year's December 31 figure. Total liabilities stood at 240.25 billion baht, growing by 12.10 billion baht or 5.3% since the end of 2025. Shareholders' equity increased to 81.83 billion baht, a 5.92 billion baht or 7.8% rise from the same date last year.

THAI's fleet consisted of 84 aircraft as of June 30, 2026, with an average utilisation of 12.9 hours per aircraft per day. The airline served 3.66 million passengers during the quarter, resulting in 16,778 million Available Seat Kilometers (ASK), a 4.4% decrease from the same period in 2025. This decline in ASK was attributed to flight reductions due to Middle Eastern unrest, which impacted passenger travel demand.

Revenue Passenger Kilometers (RPK) totaled 11,993 million, down 11.3% year-on-year, leading to an average Cabin Factor of 71.5%, compared to 77.0% in the same period last year.