Thai Airways Q4 Net Profit Tumbles

February 25, 2011

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Thai Airways reported a 67 percent drop in fourth-quarter net profit on Friday, hit by surging wage costs and lower foreign exchange gains.

The October-December net profit for the national carrier was THB2.94 billion baht (USD$95.9 million), compared with THB8.9 billion a year earlier -- driven by large foreign exchange gains -- and a THB136.4 million profit in the third quarter.

The 2010 net profit of THB15.35 billion baht was slightly lower than the THB15.4 billion forecast and compared with a net profit of THB7.34 billion in 2009.

The national carrier should benefit from higher passenger yields this year because of a recovery in tourism, while higher fuel costs should be offset by an increase in fuel surcharges.

(Reuters)