THAI: Losses caused by sluggish tourism

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BANGKOK, 30 January 2015 – National carrier Thai Airways International (THAI) says its losses last year was mainly due to Thailand’s tourism slowdown, not the company’s oil price hedging.

THAI Financial Director Ratch Tantananta said the airliner made a profit from oil price hedging during the first nine months of 2014 as well as the fourth quarter. He confirmed the radical oil price drop was not the main cause of THAI’s losses.

THAI was affected by the decrease in air travelers which also affected other airlines, the director said. The national flag carrier’s cabin factor in January was more than 80%.

THAI’s losses during the first nine months of 2014 was 9.2 billion baht, about three billion baht higher than the same period in 2013. Its revenue from sales or services dropped by 10.2% or to 15.6 billion baht.