Rising oil prices turn into Thai Airways’ biggest headache

BANGKOK (eTN)- Despite a tough year 2010 plagued by political turmoil in Thailand, the closure of the European air space consequent to volcanic activity in Iceland in April 2010, Thai managed to increase total revenues and its net profit in 2010 despite rising expenses (up by 10.6% over 2009). Last year, total revenues were up by 12.4% at US$ 6.68 billion (THB 184.3 billion) while net profit reached US$ 505 million (THB 15.4 billion), up by 109 % compared to 2009.

Thai Airways optimism for 2011 is however dampened by the recent surge in fuel prices due to the current turmoil in the Middle-East. Last year already, higher fuel prices pushed expenses up by over 26%. But this week, jet fuel prices already hit 130 US$ a barrel while crude oil was quoted in Dubai at US$ 101/barrel.

Read more: eTurboNews