Bangkok Air posts net loss of B157m

Bangkok Airways Plc turned red in the third quarter, a reversal from a strong result seen a year ago, as it felt the impact of fierce market competition and higher costs.

The regional carrier posted a net loss of 157 million baht in July-September compared with 681 million baht in net profit made in the same period last year.

Weakening its third-quarter bottom line were a 20.7% surge in expenses, higher fuel costs spurred by rising oil prices, an increase in excise tax on fuel for domestic flights, and 69.6 million baht in foreign exchange loss, according to its filing to the Stock Exchange of Thailand.

The airline’s revenue was up by 2.6% to 6.87 billion baht as it carried 6.9% more passengers to record 1.52 million, up from 1.42 million in the previous period. But its load factor fell to 69.4% from 70.3% a year ago.

Passenger yields also fell to 4.33 baht per passenger kilometre from 4.82 baht earlier.

Bangkok Airways’ results were largely consistent with those of other major Thai-registered airlines.

Thai Airways International was the worst performer in the quarter with a net loss of 1.82 billion baht, due to one-time expenses and asset impairment, and foreign exchange losses.

Cash-strapped budget airline Nok Air posted a net loss of 653 million baht, which narrowed from 1.07 billion baht in the same quarter last year.

Asia Aviation Plc (AAV), the SET-listed firm that owns 55% in low-cost carrier Thai AirAsia (TAA), was the only SET-listed airline company with positive, albeit weaker, third-quarter performance.

AAV’s net profit fell 34% to 261 million baht, as TAA’s net profit fell 35% to 472 million, against 729 million a year earlier.

For the first nine months of this year, Bangkok Airways posted a combined net loss of 143 million baht against 2.08 billion in net profit in the same period last year.

All airlines expect their fourth-quarter performances to improve their whole-year bottom lines markedly from the high-season air travel demand.