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PG Sees Half-year Profit Dip

15 Aug, 2019

BANGKOK, 15 August 2019: Bangkok Airways’ first-half net profit slipped to 1.4% to record THB637.3 million, the airline reported to the Stock Exchange of Thailand earlier this week.

Its operating results for the first six months of 2019 indicating revenue had reached THB13,865.7 million, down 1.4%.

During the second quarter, airline revenue closed at THB 6,077.4 million down 4.2% when compared with the same period last year.

Bangkok Airways president, Puttipong Prasarttong-Osoth, attributed the decrease to a sluggish airline business performance linked to the slowdown in international tourist arrivals to Thailand.

The CEO also blamed the negative result on intensified competition and strengthening of the Thai Baht.

For the second quarter, passenger traffic grew slightly at 2.3% while average fare revenue dropped by 4.3%. Passenger yield per RPK was THB4.04, weakening by 2.5%, year-on-year.

“For the six-month period, the company reported total revenue amounting to THB13,865.7 million, down by 1.4% from the same period last year. The decrease in revenue was mainly due to airline and airport business, which declined by 4% and 9.4% respectively. Revenue from airport-related services and other related business activity and unallocated revenue grew by 5.8% and 12.2% respectively,” the president reported.

Total expenses of the company during the half-year increased by 6.1% mainly from higher average market fuel prices and additional costs related to employee benefits increases according to the new Labour Protection Act.

The company reported a net loss at THB187.2 million for the first half of this year with the loss attributable to the equity holders of the company amounting to THB189.6 million. Loss per share for the six-month period of 2019 was therefore THB0.09.

Puttipong added: “In the second quarter of 2019, the company launched the Chiang Mai-Luang Prabang route with three flights weekly as well as increasing flights on some popular routes such as Chiang Mai–Krabi (one way) to seven flights weekly, Krabi-Bangkok (one way) to 28 flights weekly.”

In the second quarter, the company also decreased flights to reflect travel demands. The reductions included Bangkok-Phuket (one-way) from 56 flights weekly to 49 flights weekly and Chiang Mai-Bangkok (one way) from 39 flights to 35 flights weekly. For the second quarter of 2019, the number of passengers reached 1.3 million, up by 2.3%, mainly gained from point-of-sale activity in Asia excluding Thailand at 26%, Thailand at 22% and Europe at 17%.

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