Fuel quakes impact THAI

first_imgThai Airways has reported a 147.5 percent loss in profit before income tax for the full year last year compared to 2010, citing uncontrollable factors for the loss.The company’s executive vice president of financial and accounting Wasukarn Visansawatdi explained the drop from 16.657 million baht to a 7.917 million baht was a result of “external factors”.Among the issues responsible for the decline according to the VP of accounting are the rising cost of fuel, EU economic crisis, Japan’s quake and Bangkok’s flooding late last year.Wasukarn Visansawatdi added to deal with the rising cost, the carrier promptly adjusted its flights and schedules to cope with the change.“THAI closely monitored fuel price and made necessary adjustments to the level of fuel surcharge to cover the jump in fuel cost but with fierce market competition, THAI was not able to sufficiently adjust fuel surcharge to cover the jump in fuel cost increase which adversely impacted THAI’s overall profitability for 2011.”Despite the loss, the carriers total revenues increased by 5.5 percent from 184,270 million baht to 194,342 million baht.Meanwhile traffic decline by two percent from the year compared to the prior year while the number of passengers carried increased by 1.2 percent from 341 million to 355 million. Thai Airways tail logo Source = e-Travel Blackboard: N.Jlast_img

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