The flag carrier said yesterday that net profit was Bt4 billion, with pre-tax profit up 6.4 per cent year on year at Bt5.8 billion. Revenue also increased, by 5.4 per cent to Bt48.4 billion.

The results are in line with analysts' expectations. Four brokerages polled by Dow Jones Newswires had forecast a net profit of Bt4.08 billion.

"We continued to enjoy strong demand for tourism. Among foreign passengers, demand for first- and business-class seats was higher," said a senior company official.

Some 93 per cent of the airline's revenue comes from international flights, with the rest from domestic routes, he said, adding that THAI filled 79 per cent of its seats during the quarter.

Tourism is a key money spinner for Thailand, accounting for 6 per cent of the Kingdom's economy. Among the airline's foreign routes, flights from Bangkok to London, Frankfurt and Tokyo are among the most profitable.

Apart from robust demand for tourism, easing fuel costs helped the company lift its earnings, the official said.

"On a year-on-year basis, fuel costs rose just two per cent and

this really helped us increase

our profitability," he said.

During the quarter, THAI recorded sales of Bt48.37 billion, up from Bt45.88 billion a year earlier, as revenue from ticket sales and excess-baggage charges climbed to Bt39.16 billion, from Bt36.41 billion.

Foreign-exchange gains rose to Bt1.66 billion, from Bt1.38 billion a year ago, following the baht's sharp rise against the US dollar late last year, the airline said.

THAI added that improved sales and higher forex gains had outweighed an increase in expenses. The carrier recorded Bt42.93 billion in operating expenses for the first quarter, up from Bt40.59 billion a year earlier, mostly as a result of salaries, jet fuel and depreciation.

THAI's board yesterday approved the delayed delivery of six new Airbus A380-800 aircraft by about 21 months.

The board decided it remained necessary for the company to use the A380-800, a long-range aircraft with a capacity of 519 seats, in order to increase its productivity on routes with high passenger traffic and restraints in increasing flight frequencies, such as London, Frankfurt and Paris.

The company's first A380-800 will now be delivered in September 2010.

The board also approved the purchase of an additional eight Airbus aircraft at the discounted price of US$90 million (Bt32.2 billion) each.

Agencies, The Nation