Thai Air sees earnings boost from more flights to India, China

Thai Air sees earnings boost from more flights to India, China

Thai Airways Sees Earnings Growth Amid Strategic Shift to India and Cost Efficiency

Thai Airways International (THAI) reported a net profit of 30.94 billion baht for the financial year ending December 31, 2025, a 215% year-on-year increase, driven by improved cost management and a strategic pivot to higher-yielding international markets. While Chinese tourist arrivals declined by 35% in 2025, the airline offset this by expanding connectivity to Europe and India, where demand remained robust.

The airline's European routes, particularly from Bangkok's Suvarnabhumi Airport, contributed significantly to its performance, supported by a 79.1% load factor and lower fuel costs. Additionally, THAI's focus on India—a key growth market—aligned with broader regional trends. Indian outbound tourism to Thailand surged to 2 million arrivals in 2024, an 8.6% increase compared to 2019 levels, while seat capacity between the two countries expanded by 21% in 2025. Thai AirAsia, a subsidiary of Asia Aviation PLC (AAV), further capitalized on this trend, reporting a 22% rise in Indian passenger traffic to 1.2 million in 2025.

Cost discipline also played a critical role. THAI reduced operating expenses through fuel efficiency and currency gains, with the appreciation of the Thai baht adding 2.54 billion baht in foreign exchange benefits. Meanwhile, Thai AirAsia cut costs by 5% in 2025, including a 10% reduction in fuel expenses, while maintaining an 83% average load factor.

Despite challenges in the Chinese market, THAI and its subsidiaries adapted by reallocating resources to regions with stronger demand. The airline's fourth-quarter 2025 results reflected this strategy, with a 351% surge in net profit and the launch of new routes to India and domestic destinations. Looking ahead, the Tourism Authority of Thailand's promotional campaigns and government incentives, such as the "Shop and Stay Tax Break 2025," are expected to further stimulate tourism and support sector growth.

Overall, Thai Airways' earnings reflect a combination of market diversification, operational efficiency, and strategic route adjustments to navigate shifting global travel dynamics.