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Published on November 28, 2007

The airline blamed tougher competition, shrinking local and world economic growth, natural disasters, rising aviation-fuel prices and fluctuating foreign exchange.

THAI reported a 2006 full-year profit of Bt8.99 billion.

The company's financial year ended on September 30. It was THAI's first year of operations out of Suvarnabhumi Airport, executive vice president for finance and accounting Ngamnit Sombutpibool said in a statement filed with the Stock Exchange of Thailand yesterday.

In it, she said the national flag carrier opened new routes to Johannesburg in South Africa and Hyderabad, Bodhgaya and Varanasi in India. In addition, THAI increased international and domestic flight frequencies to cope with increased passengers and point-to-point domestic operations out of Don Mueang Airport.

Nevertheless, she said the airline encountered stiff competition internationally. Low-cost fliers challenged it domestically. An international economic recession, natural disasters and significant increases in jet-fuel prices added to difficulties.

She stressed problems with currency-exchange fluctuations in the company's fiscal fourth quarter.

Total sales revenue was Bt192.04 billion, up 7.5 per cent from the same period last year. Operating expenses totalled Bt179.25 billion, up 5.3 per cent.

As a result, operating profit was Bt12.79 billion, a year-on-year increase of Bt4.42 billion, or 52.9 per cent.

THAI's net profit was Bt6.34 billion, or Bt3.73 a share, down Bt2.65 billion, or 29.5 per cent, from the year before. Also, aircraft-sales revenue and foreign-exchange gains from converting outstanding loans into baht were substantially higher.

Consolidated total assets were Bt272.09 billion, up Bt23.05 billion from the same period last year. Total liabilities were Bt202.86 billion, up Bt19,505 billion.

The Nation