Thai Airways' share price soars more than 200% after trading resumption
Shares rose as much as 231 per cent higher in early trade and ended the day at 10.5 baht from around three baht before trading was suspended. The national carrier went into bankruptcy-protected restructuring in 2020 at the onset of the pandemic.
The airline had been in trouble well before the pandemic, reporting losses nearly every year since 2012 after low-cost carriers eroded its market share, especially in short haul routes in South-east Asia.
When Covid struck, Thai Airways was granted bankrupt-protected debt restructuring worth 400 billion baht (S$16 billion). It brought top executives into its restructuring committee chaired by former energy minister Piyasvasti Amranand, who was also the company's chief executive in 2009 to 2012 when it was profitable.
Over the five years from 2020, the airline reduced debt to 190 billion baht and reported operational profits in 2023. In the first quarter of this year, net profits reached US$9.8 billion, up 300 per cent from the the same period last year.
It currently flies 78 jets and reported a cabin factor – the percentage of seats filled with passengers – of 83.3 per cent.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
The airline hailed the resumption of trade as 'a pivotal new chapter for the airline, which stands as a profound source of national pride for the Thai people.'
'THAI is now strategically positioned for robust, stable, and sustainable growth. This is driven by a steadfast commitment to elevating operational standards and service quality, coupled with a strong emphasis on corporate governance,' it said in a statement.
The committee launched debt to equity plans and went on to slash half of its support staff to 16,000. It also initiated plans to cut its fleet from 103 to 85 aircraft and shed its budget carrier, Thai Smile.
Last year, the carrier ordered 45 Boeing 787-9 wide-body jets with an option for 35 more. In July, it said it could exercise the option as part of Thailand's tariff negotiations with the United States.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
15 minutes ago
- Business Times
TNG Digital becomes unicorn in Malaysia, mulls IPO, CIMB says
[KUALA LUMPUR] TNG Digital Sdn, Malaysia's largest fintech company, has reached unicorn status and will weigh an initial public offering, according to shareholder CIMB Group Holdings Bhd. 'We are very confident that TNG is already qualified as a unicorn,' Gurdip Singh Sidhu, country head of Malaysia, CIMB Bank, told reporters on Tuesday (Aug 5). 'The question of IPO is something we will assess, but it's not something we are rushing into.' The operator of one of Malaysia's most popular e-wallet apps is the country's newest unicorn – a startup valued at over US$1 billion – joining Carsome Group, which operates a used-car online marketplace in South-east Asia. The nation aims to identify five unicorns by 2030, Second Finance Minister Amir Hamzah Azizan said at a fintech conference in Kuala Lumpur. TNG Digital turned profitable this year, said Sidhu, who also heads the bank's digital businesses. The fintech firm is 45 per cent-owned by Touch 'n Go Sdn, a CIMB Group unit. 'The business is growing very nicely, very well,' Sidhu said. BLOOMBERG
CNA
an hour ago
- CNA
Dollar edges up vs euro and yen, but still close to Friday's lows
The dollar edged up against the euro and the yen, but remained within striking distance of Friday's lows, after weak U.S. jobs data boosted bets on Federal Reserve rate cuts and triggered a sharp selloff in the greenback. Goldman Sachs expects the Federal Reserve to deliver three consecutive 25 basis-point rate cuts starting in September, with a 50 basis-point move possible if the next jobs report shows a further rise in unemployment. It also sees the European Central Bank as having concluded its easing cycle. Economists raised their growth forecasts for the euro area and Japan following relatively benign trade agreements, while arguing that Friday's U.S. jobs report confirmed the economy is hovering near stall speed. Meanwhile the firing of the head of the Bureau of Labor Statistics (BLS) on Friday, and the resignation of Fed Governor Adriana Kugler, could harden the views of the FOMC to ensure its independence is protected, analysts said, recalling that the new appointee will be just one vote on the Fed's Federal Open Market Committee (FOMC). The euro was last down 0.12 per cent at $1.15592, after hitting on Friday $1.15855. The dollar index, which measures the U.S. currency against six counterparts, was at 98.816, after touching a one-week low earlier in the session at 98.609. "Traders likely inferred that the (U.S. jobs) report gave President Donald Trump even more justification to 'fire' Jay Powell," said Thierry Wizman, global forex and rates strategist at Macquarie Group. "Alternatively, it gave Trump even more support for giving the Chairmanship to someone that would be more 'structurally' dovish," he added, arguing that Friday's employment report shifted the outlook for where the Fed Funds rate target will be one year from now. RATE CUTS Money markets are now pricing in a 92 per cent chance of the Fed cutting rates in its next meeting in September, compared with 63 per cent a week earlier. They also indicate 130 bps of rate cuts by October 2026, 30 bps more than the levels seen on Friday before U.S. jobs data. The Japanese yen was down 0.14 per cent at 147.3 per dollar after minutes of its June policy meeting showed a few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade frictions de-escalate. The focus remains on tariff uncertainties, after the latest duties imposed on imports from scores of countries last week by Trump stoked worries about the health of the global economy. The Swiss franc extended losses for a second day, weakening 0.1 per cent to 0.8089 per dollar after dropping 0.5 per cent in the previous session. However it was still above the levels seen before Friday's economic figures, at around 0.8128. Switzerland is looking to make a "more attractive offer" in trade talks with Washington, to avert a 39 per cent U.S. import tariff on Swiss goods that threatens its export-driven economy. In other currencies, the Australian dollar eased 0.05 per cent to $0.6464, while the New Zealand dollar slipped 0.1 per cent to $0.5898.
Straits Times
3 hours ago
- Straits Times
American Eagle shares jump most since 2000 after Trump praises Sydney Sweeney ad
Sign up now: Get ST's newsletters delivered to your inbox Advertisements featuring actress Sydney Sweeney outside an American Eagle store in New York, on Aug 4. NEW YORK – American Eagle Outfitters shares jumped the most since 2000 on Aug 4 after United States President Donald Trump touted the company's ads – pushing the retailer's stock into meme stock territory. The shares spiked 24 per cent on Aug 4 after Mr Trump said in a social media post that American Eagle's recent marketing blitz with American actress Sydney Sweeney, 27, is the 'HOTTEST ad out there.' He said American Eagle jeans are 'flying off the shelves'. It is not yet clear whether the ad campaign – which controversially celebrates Sweeney's genetic traits as well as her jeans – is actually convincing shoppers to buy the company's apparel. Analysts say the real test will be how American Eagle performs during the crucial back-to-school season as consumers begin to stock up on jeans and other autumn essentials. So while Mr Trump's comments on Aug 4 do not reveal any new information about the company's performance, they do add to the hype around American Eagle shares. And that has drawn investors betting on the hype itself – a telltale sign of a meme stock. 'What are meme stocks for the most part? Individual investors chasing after the hottest stock,' said Mr Matt Maley, chief market strategy at Miller Tabak & Co. The move on Aug 4 pared the stock's year-to-date decline to 20 per cent. The company has been battered by sluggish demand and last quarter, it registered a US$75 million (S$96 million) charge related to a writedown of its spring and summer merchandise. Top stories Swipe. Select. Stay informed. Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim World Israel to decide next steps in Gaza after ceasefire talks collapse Singapore Singapore-made bot matchmakes strangers virtually – without profile photos Life Urinary issues: Enlarged prostate affects half of men in their 50s and up Singapore Jail for man over scheme to buy phones worth more than $45k with stolen credit card details Singapore Conditional warning for ex-manager at Mendaki accused of trying to obtain laptop as bribe Some traders who drove up the shares on Aug 4 are probably betting that the spotlight on the company will translate into greater sales. But that alone does not explain the magnitude of the share move, Mr Maley said, adding that American Eagle executives should seize on the interest by, for example, issuing more shares. Meme stock darlings AMC Entertainment Holdings and GameStop have done this in the past. Representatives for American Eagle did not immediately respond to a request for comment. 'In the short term, traders are very adept at chasing hype,' said Mr Steve Sosnick, chief strategist at Interactive Brokers. 'If one believes that the more this is talked about, the better it is for the stock, then that certainly is a boon.' 'Whether or not that translates into more or fewer people buying the actual products' after Mr Trump weighed in will not be clear for 'days, weeks or quarters', Mr Sosnick added. The interest in American Eagle is likely to continue, even if there is not another major precipitating event like a social media post by the US president. 'The momentum is there,' Mr Maley said. 'Today's marketplace with algorithmic trading, not only does it create buyers, but it eliminates sellers.' While Sweeney, a sought-after face for brands, has provided a pop for stocks in the past, those gains have not always endured. A year ago, footwear company Crocs disclosed Sweeney as a global spokesperson for its Heydude line. The stock rose 4.1 per cent on the day of the announcement, but since then, shares are down nearly 30 per cent. Bloomberg
