Thai Airways International Public Company Limited (THAI) aims to finalize its capital restructuring plan by the end of this year, with plans to seek the cancellation of its business rehabilitation before re-entering the stock exchange in the second quarter of 2025.
The restructuring will primarily focus on converting debt to equity and offering new shares to shareholders, employees, and investors in a phased manner.
In the second quarter of 2024, THAI and its subsidiaries reported a total revenue of 43.9 billion baht, which is a 17.7% increase compared to the same quarter last year. However, the net profit dropped to 314 million baht, significantly lower than the two billion baht profit recorded in the same period the previous year.
The rise in total expenses to 38 billion baht, reflecting an increase of 32.1% from last year, was primarily due to variable costs, contributing to the lower profit margin.
The company anticipates submitting its registration statement for the sale of securities and the draft prospectus for its capital restructuring to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) next month.
Additionally, THAI will be filing a petition with the Central Bankruptcy Court to cancel its business rehabilitation and plans to resume share trading on the SET by the second quarter of 2025.
The timeline for these processes will depend on the company’s proceedings and the evaluations by the SEC, SET, Central Bankruptcy Court, and other relevant authorities.
Before THAI filed for rehabilitation in May 2020, the cabinet directed the Ministry of Finance to reduce its shareholding in the airline by at least 50%, resulting in THAI no longer being classified as a state enterprise.
This change has provided the company with more management flexibility, improved competitiveness, and the ability to effectively implement its business transformation and rehabilitation plan. Measures being adopted include organizational downsizing, enhancing fleet and engine commonality, cutting costs, and expanding its network.
