Thai Airways Shares Reach Seven-Year High After Earnings Surge

Thai Airways International's shares rose 10.5% to a 7-year high after reporting a 39-fold increase in Q2 net income to 12.1 billion baht. The carrier's market value reached 407.5 billion baht, making it Asia's 5th-largest airline. The earnings turnaround was due to lower finance costs, one-off gains, and a cost-cutting program. However, analysts warn that a slump in Thai tourism could weigh on the carrier in the future.

Thai Airways International (THAI) has reported a remarkable turnaround in its financial performance for the second quarter of 2025, with a 39-fold increase in net income to 12.1 billion baht. The carrier's shares rose 10.5% to a seven-year high, pushing its market value to 407.5 billion baht and positioning it as Asia's fifth-largest airline [1]. This significant improvement can be attributed to lower finance costs, one-off gains, and a successful cost-cutting program.

The airline's robust performance was driven by a number of key factors. Cheaper jet fuel and increased passenger growth contributed to a 1.9% year-on-year increase in revenue to 44.83 billion baht (excluding one-time items) [1]. Passenger numbers climbed 4.2% to 3.97 million, with the average cabin factor hitting 77% [1]. Operating expenses fell 9% to 34.65 billion baht, largely due to a sharp drop in oil prices and reduced aircraft maintenance costs [1].

Operating profit before finance costs surged 71.8% to 10.18 billion baht, delivering an EBIT margin of 22.7% [1]. After accounting for finance costs of 3.39 billion baht and one-time gains of 5.35 billion baht—mainly from converting leases to purchases for four Boeing 777-300ERs—the airline booked a net profit of 12.13 billion baht [1]. This represents a dramatic leap from the 314 million baht profit posted in Q2 2024.

For the first half of 2025, revenue reached 96.45 billion baht, up 7.2% year-on-year, while net profit rocketed to 21.97 billion baht—a jaw-dropping 702% increase [1]. Passenger load factor averaged 80.2%, with 8.3 million passengers carried [1].

The airline's strong performance comes on the heels of its triumphant return to the Stock Exchange of Thailand (SET) on August 4, following a lengthy rehabilitation process [1]. Over its first four trading days, THAI shares averaged 4.4 billion baht in daily turnover, closing yesterday, August 7, at 13.40 baht—a 27.6% jump from its relisting price [1]. That pushed market capitalisation to 379.26 billion baht, ranking it as the 11th largest stock on the exchange [1].

However, analysts warn that a slump in Thai tourism could weigh on the carrier in the future [2]. Despite recent fluctuations in Chinese tourist arrivals, the airline has remained resilient. With its primary markets focused on Europe, Australia, and neighbouring Asian destinations, Chinese passengers currently contribute only around five per cent of total revenue [2].

Thai Airways has unveiled an ambitious target to achieve THB400 billion in annual revenue by 2033, as the national carrier continues its dramatic turnaround from years of financial turbulence [2]. The announcement coincided with the resumption of the airline’s share trading on the SET [2]. Central to Thai Airways’ recovery strategy is an extensive fleet expansion plan, with the airline aiming to operate 150 aircraft by 2033 [2].

THAI remains committed to delivering stable and sustainable growth, continuously enhancing operational excellence and service quality, and upholding the highest standards of corporate governance [3]. The carrier is well-positioned to reclaim its status as a leading regional airline and one of the most high-quality listed companies on SET.

References:
[1] https://thethaiger.com/news/business/thai-airways-soars-with-12-billion-baht-profit-in-q2
[2] https://www.marketscreener.com/news/thai-airways-targets-thb400bn-revenue-by-2033-ce7c5ed9d98af326
[3] https://www.nationthailand.com/business/corporate/40053756