The State Enterprise Policy Office (SEPO) has said it anticipates that Thai Airways International Plc (THAI) will make its return to the Stock Exchange of Thailand in 2025. The prediction comes as THAI shows signs of financial health improvement, aligning with its rehabilitation plan.
Despite undergoing considerable challenges during the pandemic, which severely impacted the aviation sector, THAI has been making strides in its recovery. This includes operational streamlining efforts such as workforce reduction by half and fleet downsizing by about 40% through leasing strategies. The airline’s path to revival was bolstered by the Central Bankruptcy Court’s approval of its recovery plan in September 2020, which was necessary after the pandemic forced a near-total halt to air travel.
According to SEPO Director-General Tibordee Wattanakul, THAI’s resurgence is evident in its recent financial performance, reporting a profit of nearly 2.3 billion baht in the second quarter of 2023, marking a significant 171% increase from the previous year and the highest in two decades. This financial upturn suggests the airline is on track to exit its rehabilitation phase by the end of this year.
The revival of the tourism sector, with an expected 33.5 million foreign tourists, mainly from China and Malaysia, represents a 19.6% increase from 2023, playing a crucial role in the airline’s recovery. Tourism revenue for the year is also projected to rise by 23.6% to 1.48 trillion baht, further indicating a positive trend for the industry and THAI’s prospective relisting on the stock exchange. (NNT)
