Thai Airways International has confirmed an operating loss of 12 billion baht last year as it suffered from the impact of political unrest in the country.
This compared with a profit of 6.3 billion baht in 2012.
The carrier said the country’s political turbulence resulted in a “significant slow down” in tourism to Thailand in the last quarter of 2013 – the traditional high season.
Passenger numbers in the last three months of the year were down by 3.5% over the same period in 2012.
The impact from the strong Thai baht against foreign currencies, especially the Japanese yen, reduced operating revenue by 4.3%.
The airline retired 10 aircraft last year including an Airbus A330-300 aircraft damaged from skidding off the runway after landing at Bangkok’s Suvarnabhumi airport in September.
Seventeen aircraft joined the fleet, including two leased Airbus A380 superjumbos. A further 14 aircraft are due to be delivered this year, including four Boeing 787 Dreamliners, while 13 older aircraft will leave the fleet.
“The impact of the political turmoil in the country that lasted from the end of 2013 is expected to affect the confidence of investors and tourists to travel into the country in Q1 2014 more severe than in Q4 2013,” the airline warned.
Thai said it hoped that recovery would occur from the third quarter of 2014. The government’s tourism ministry has predicted a 13% rise in tourist numbers in 2014.
Low-cost off-shoot ThaiSmile Airways is due to launch later this year, with 17 aircraft operating 14 international routes in Asia and a range of domestic services.