Soaring jet fuel prices bite Thai Airways profits

Thai Airways International (THAI) said its operating profits dropped by more than half in the third quarter as the airline continues to suffer from high jet fuel costs.

Operating profit for the third quarter was 3.84 billion baht, a 55% drop from the same period last year, the national carrier told the Stock Exchange of Thailand late Thursday.

It said the sharp decline was due to higher jet prices that surged almost 60% year-on-year.  

Aircraft fuel prices this week are US$178.95 per barrel, compared to $100 less than a year ago, according to the International Air Transport Association. Most airlines are suffering from the price hike due to the Middle East war.  

The fuel burden sank the company's operating profit for the year, including the two previous quarters, to 21.28 billion baht, a 39% drop from the first three quarters of last year.  

An operating profit does not take in account financial costs, taxes and other items unrelated to the operation. 

THAI reported a third-quarter net loss of 418 million baht, compared with a net profit of 4.42 billion in the same period last year. It said the loss reflected one-time items totalling 1.13 billion baht, primarily attributable to flood impact and foreigh-exchange losses.

For the nine months to Sept 30, net profit was 11.19 billion baht, compared with 26.37 billion the year before.

Despite continued fuel pressure, THAI expects strong passenger demand at the end of the year. "The passengers advance booking remains satisfactory, reflecting high travelling demands at the end of 2026," the carrier said.  

The airline has carried almost 12 million passengers this year, a drop of 3% compared to last year. The THAI fleet comprises 91 aircraft.

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