Thai Airways Stock Soars 231% After Trading Resumes

Thai Airways International experienced a dramatic rise in its stock price, soaring as much as 231% after the airline resumed trading on Monday. Initially, the share price reached 9.5 baht (approximately $0.2872) before experiencing a slight decline later in the morning, settling at an increase of 186% by 12:50 p.m. (0550 GMT).

The airline’s recovery comes on the heels of a challenging period marked by a bankruptcy-protected restructuring that began in 2020. This restructuring was necessitated by significant financial losses that had plagued the airline for nearly a decade, largely due to increased competition from low-cost carriers in Southeast Asia. The COVID-19 pandemic exacerbated these issues, leading to a 400 billion baht debt restructuring plan.

With the guidance of its restructuring committee, chaired by former energy minister Piyasvasti Amranand, Thai Airways undertook a series of strategic actions. Amranand, who had previously served as the airline’s chief executive from 2009 to 2012, implemented debt-to-equity plans and significantly reduced the workforce from over 32,000 to 16,000. Additionally, the airline trimmed its fleet from 103 to 85 aircraft and discontinued its budget subsidiary, Thai Smile.

Over the past five years, Thai Airways has made substantial progress in reducing its debt, which now stands at 190 billion baht. The airline reported operational profits in 2023, highlighting a noteworthy recovery. In the first quarter of the year, net profits reached $9.8 billion, reflecting a remarkable 300% increase compared to the same period in the previous year.

Currently, the airline operates 78 jets with a cabin factor—indicating the percentage of filled seats—of 83.3%. Last year, Thai Airways placed an order for 45 Boeing 787-9 wide-body jets, with the option for an additional 35 aircraft. In July, the airline indicated its intention to potentially exercise this option as part of ongoing tariff negotiations with the United States.

As Thai Airways continues to navigate its recovery, the surge in its stock price reflects growing investor confidence in the airline’s turnaround efforts and future prospects.