International Finance
Aviation

Thai Airways reports losses of around $900 mn during H12020

Thai Airways losses_IFM_Image
The carrier posted losses of around $170 mn in the second quarter

Thailand-based state-owned carrier Thai Airways has reported losses of around $900 million during the first six months of the year, according to reports in the media.

The carrier further revealed that its losses for the second quarter of 2020 stood at around $170 million.

The losses incurred were due to the coronavirus pandemic which has forced carriers across the globe to suspend almost all of their operations.

During the first quarter, Thai Airways reported losses of around $730 million.

Last month, Thai Airways announced the appointment of its board member Chansin Treenuchagron as its acting president.

Chansin Treenuchagron previously served as the president of the state-owned oil and gas conglomerate PTT Plc.

The board of members of the troubled carrier held a meeting on Tuesday and also decided that it will let go of only 5 percent of its 20,000 employees as a part of its restructuring.

Initially, it was reported that Thai Airways would let go of more than 6000 of its employees, which equates to around 30 percent of its workforce.

The Central Bankruptcy Court in Bangkok accepted Thai Airways’ bankruptcy petition, earlier this year. The whole process of its debt rehabilitation is expected to take up to five years.

Thai Airways became the first airline in the Southeast Asia region to file for bankruptcy after the coronavirus pandemic hit the aviation sector worldwide.

Earlier this month, media houses reported that the Thai government has decided to restructure the troubled carrier as per the bankruptcy act. The carrier has accumulated a debt moratorium of ฿200 billion over the years.

Since 2012, Thai Airways has posted losses every year after 2012, except in 2016. Last year, it losses of ฿12.04 billion.

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