Thai Airways CEO Announces Sale of Six Boeing 777-200ERs Amid Declining Profits

Thai Airways International’s CEO, Chai Eamsiri, has confirmed the successful sale of six Boeing 777-200ER aircraft as part of the airline’s ongoing fleet modernization and cost-reduction efforts. This announcement was made during the release of Thai Airways’ first-quarter financial results on May 10, which also highlighted a significant decrease in profits compared to the previous year.

While the specifics of the buyer and the financial terms were not disclosed, Eamsiri noted that the sale incurred an impairment cost of THB3.34 billion (approximately USD91 million), primarily due to the aircraft and associated spare parts being valued lower than their booked value.

Additionally, Thai Airways is in the process of negotiating the sale of other aircraft in its fleet, including six 777-300ERs and six A380-800s, though these contracts have not yet been finalized. The airline also completed the sale of two A340-600s and a single 747-400 within the same quarter, albeit at a loss.

In terms of fleet expansion, Thai Airways added three new A350-900s to its lineup during the quarter, bringing its total operational fleet to 73 aircraft as of March 31, 2024. Despite these additions, the airline faced challenges such as higher operating costs and a depreciating local currency, which contributed to a net profit of THB2.423 billion (USD65.9 million) for the quarter—a 78.9% decrease from the same period in 2023.

Despite these financial setbacks, CEO Eamsiri reassured stakeholders that the reduced profits would not impact the airline’s overall operations, expansion efforts, or its ongoing rehabilitation plan, expected to conclude later this year. Thai Airways continues to adjust its strategy to navigate through financial difficulties while aiming to strengthen its market position and operational efficiency.