THAI Anticipates Profitable Fourth Quarter Results

Mr. Somchainuk Engtrakul, Acting President of Thai Airways International Public Company Limited, announced that THAI’s overall system operations remain secure in the aftermath of the situation in the United States, and profitable results are anticipated to be achieved during the fourth quarter of Thai fiscal year 2000-2001 at the equivalent to that earned during last year’s fourth quarter results.

In addition, Mr. Engtrakul stated that THAI was not highly affected by the crisis situation in the United States, since the American market accounts for approximately 5 percent of THAI’s revenue, with 22 percent coming from the market in Thailand, 6 percent from Indonesia, India, Nepal, Sri Lanka, and the Middle East, 36 percent within the Asian region, 26 percent from European markets, and 5 percent from Australia and New Zealand.

Mr. Engtrakul further stated that THAI has resumed operations with daily flights routed from Bangkok to Los Angeles and vice versa.

Furthermore, reservations on THAI’s flights have not been impacted, with flight bookings on the Bangkok – Los Angeles v.v. route being fully booked and operations to and from Los Angeles fully operational, serving a substantial number of passengers departing to and arriving from the United States.

Reservations for flights to and from the United States, which make up 5 percent of THAI’s earnings, maintained a continuum. In addition, bookings for flights to and from destinations that THAI serves within the Asian region also remain secure. It is anticipated that, during October, there will be a slight degree of travel cancellations on flights to and from Europe.

Presently, THAI has not been affected by the current fluctuation in the fuel prices because the airline purchases fuel in advance by a period of one month.

Nevertheless, as a result to the situation, it is anticipated that as airlines around the world become impacted by the increasing cost of fuel, it may be necessary for THAI to increase its air fares as these factors affect the airline industry.

It was further stated that THAI’s operational expenses will not increase since the overall operating costs for the airline are considerably low when compared to certain other air carriers.