THAI is confident that its capital will turn positive in 2024 and is ready to resume trading on the stock market. faster than the original plan set in 2025 following the continuous good operating trend and have the ability to make continuous profits At the same time, ready to accelerate new capital Hoping to end the business rehabilitation Tourism has recovered, making new highs, surpassing 12 billion baht per month. nearby before covid pushing cash flow in hand up to 30 billion baht
Mr. Suwattana Sibunruang, Acting Chief Executive Officer of Thai Airways International Public Company Limited or THAI, revealed that the company is currently preparing to hire a financial advisor (FA) to implement the new rehabilitation plan. following being approved by the bankruptcy court in carrying out new capital pursuant to the debt-to-equity conversion process and capital increase from former creditors and existing shareholders in the amount of 2.5 billion baht within the year 2024, which is a decrease from the original rehabilitation plan of 50 billion baht
However, urgent new financing in the amount of approximately 12,500 million baht to increase liquidity in the year 2023, the FA will be instrumental in analyzing the entire credit financing plan. Initially, new loans will be procured in the form of long-term loans (Term Loan) not exceeding 6 years and / or debt instruments with a maturity of not less than 6 years, in the amount not exceeding 12,500 million baht.
In addition, according to the rehabilitation plan, a revolving facility has been prepared in the amount of not more than 12,500 million baht as well. And still have to increase the registered capital of regarding 31,500 million shares with the goal of making the capital positive. To make the financial structure of the company stable and to allow the company’s securities to be able to return to be traded on the stock market once more before the 2025 goal.
The target is that the capital will turn positive in 2024 and the company’s securities should be able to resume trading on the Stock Exchange of Thailand (SET) as soon as possible. This may be faster than the plan set in 2025 because the current trend of operations is going well. Thai Airways has continued profitability. which is one of the conditions set for a return to trading. must be able to increase capital and has consistently good profitability.”
for business overview Currently, the number of passengers of the company continues to grow. This is in line with the global tourism trend that has begun to recover. Which the company has resumed service of regarding 70% of the routes compared to the period before the outbreak of COVID-19 And the cabin factor has increased to 85%.
State the latest income, New High, 1.2 billion baht/month nearby before covid
However, from the recovery of passengers As a result, the current operating income is 12 billion baht per month. Close to the normal situation compared to the time before COVID-19 with an operating income of approximately 1.5 billion baht per month And considered as income that grows steadily from the COVID-19 epidemic With operating income as low as 200 million baht per month, Thai Airways began to make a profit since May ’22, which occurred from the adjustment of management costs. cost in all parts and still continue to earn income but when deducted from the beginning of the year before tourism began to recover Causing the overview of the operating results of Thai Airways at this time still not profitable But it is considered that the loss is greatly reduced. It is believed that next year there will continue to be profit from operations.
In addition, the recovery of passengers resulted in an increase in cash flow (Cash Flow) to 30 billion baht, which was a sufficient amount to manage the organization. As a result, Thai Airways did not have the urgency to procure new capital. but anyway for the organization to be sustainable and able to exit from the rehabilitation plan Thai Airways still has to proceed with new funding in the amount of 25 billion baht, as detailed in the latest rehabilitation plan update.
