PUBLISHED: 10 Aug 2024 at 10:32
Thai Airways International Public Company Limited is on track to finalize its capital restructuring plan by year-end, aiming for a smooth transition back to trading on the stock exchange by the second quarter of 2025. This plan includes a debt-to-equity conversion and new share offerings aimed at shareholders, employees, and investors.
In its second quarter report for 2024, Thai Airways announced a substantial revenue increase, hitting 43.9 billion baht, marking a 17.7% rise compared to the same period last year. However, the airline recorded a net profit of just 314 million baht, significantly lower than the 2 billion baht profit reported in the previous year’s second quarter.
The company faced high total expenses of 38 billion baht, exacerbated by a 32.1% rise in variable costs, impacting overall profitability.
Thai Airways plans to submit a securities sale registration statement and a draft prospectus for its capital restructuring to the Securities and Exchange Commission and the Stock Exchange of Thailand next month. Furthermore, a petition to the Central Bankruptcy Court will be filed for the cancellation of the business rehabilitation process, facilitating the resumption of share trading in early 2025.
The timeline for these actions will depend on the ongoing proceedings and approval from regulatory authorities, including the SEC, SET, and Central Bankruptcy Court.
Since the petition for rehabilitation proceedings was submitted in May 2020, the Ministry of Finance was directed to reduce its stake in the airline by at least 50%, allowing Thai Airways to operate beyond the constraints of state enterprise regulations.
This newfound flexibility has empowered the airline to enhance its management practices, boost competitiveness, and successfully implement its business rehabilitation strategies, including organizational downsizing, fleet and engine optimization, cost reduction, and network expansion.
