BANGKOK: Loss-making Thai Airways International Pcl said on Tuesday it was confident it would post a net profit in the fourth quarter due to an increase in advance bookings and a pick up in the tourism industry.
Declines in global oil prices will help reduce the airline's fuel expense, and other cost-cutting measures will, also be positive for its earnings during the October-December period, acting president Siwakiat Jayema told reporters.
He was speaking a week before the flag carrier, which posted losses for five straight quarters after the tourism industry was hit by domestic political unrest, is due to announce third quarter results.
"Tourists are coming back in the fourth quarter, it is the peak season for travel sector," Siwakiat said, without giving any figures.
He said the airline was also forging ahead with its restructuring process, which included plan to shed more than a quarter of its full-time employees by 2018.
Thai Airways has yet to give any guidance about its third-quarter earnings. Phillip Securities said in a note it expected the carrier to post an operating loss in the July-September quarter, but its net profit will be positive due to foreign exchange gain.
Thai Airways said it expects its cabin factor, or the number of seats sold as a percentage of capacity, at about 75 percent in the fourth quarter and 70 percent for the whole of 2014.
The state-controlled carrier is in the process of selecting a new president and its board will consider the issue at a meeting next month, Siwakiat said without giving details about candidates.
Local newspapers reported this week that Charumporn Jotikasthira, former president of the Stock Exchange of Thailand, is tipped to take the top position.
Siwakiat declined to comment on the news report, while Charamporn was not available for immediate comment.
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