Thai Airways Adding Boeing 787s As Load Factors Hit Highs

Thai Airways is roaring back to life in 2023. Things are going so well that recently appointed CEO Chai Eamsiri predicts the carrier will exit rehabilitation by late 2024 and return to the Thai Stock Exchange by 2025.

Beating the plan and nearing 2019 levels

At a media briefing earlier this month, Chai said the airline is running well ahead of its business plan targets, with expected earnings before interest, tax and depreciation (EBITDA) of 20 billion Thai baht ($582 million)

 Thai Airways Has Sold 5 Airbus A340s That Haven’t Flown For Over A Decade
While it has yet to announce its 2022 results officially, Chai said revenue increased fourfold to nearly 90 billion baht ($2.62 billion), and he expected that to grow by around 40% this year. If that target is met, revenue would have rebounded to about 70% of pre-pandemic levels.
THAI Airways Airbus A350
Photo: Airbus

On the operational side, Thai Airways (Thai) is now operating 65% of its 2019 routes and achieving a load factor of 85%. For the remainder of 2023, the Bangkok-based carrier expects the load factor to be “not less than 80%.” It is currently flying 49 aircraft and is taking delivery of six leased Airbus A350s in April while also looking to offload 22 aircraft as part of its long-term business plan.

The fleet expansion will allow Thai to return to 80% of 2019 levels, with new flights being added to and from China, Asia and Europe, where it will target popular European destinations. In China, Thai will launch new flights to five cities this year, including Beijing and Shanghai, while also adding frequencies to Tokyo Narita, Tokyo Haneda and Osaka Kansai. Chai said:

“We quickly fulfilled the majority of the requirements in the debt plan, and now we’re starting our long-term growth plan, which includes buying new planes and updating our fleet.”

Thai Airways Boeing 787Photo: EQRoy | Shutterstock

 

Rebuilding the fleet
Chai also revealed that the national carrier was discussing with Boeing about purchasing aircraft on a longer-term basis, believed to be Boeing 787-9 Dreamliners. Thai already has two 787-9s, plus another six 787-8s, with other widebody types like the Airbus A330, A350 and A380 and the Boeing 777 and 747 in its fleet. The aircraft earmarked for sale include six 777-300ERs, six 777-200ERs, four Airbus A340s and six A380s.

 

A report in the Thai Examiner described an ebullient Chai linking the airline’s recovery to Thailand’s emergence from a nightmare economic downturn in 2020 triggered by the overnight shutdown of the tourism industry. He added:

 

“Thai has followed its recovery plan by reducing expenses and costs and selling idle assets. The crisis in Thailand is over, and the country is entering a period of consistent revenue growth for long-term stability.”

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