The President of Thai Airways Charamporn Jotikasthira has told reporters that the full-year target of 180 billion baht is unlikely to be achievable.
A report posted with regard Thailand’s crackdown on China’s so-called zero-dollar tours has led to a sharp decline in Chinese tourists. These tours were offered below cost, with operators making big profits through kickbacks from affiliated souvenir shops and service providers from which travelers were forced to buy at inflated prices.
Thai Airways revenue from Chinese passengers has dropped by 25% over the past several months because of this crackdown.
There are obviously other factors involved as Charamporn also said many economizing steps have not yet been fully implemented, suggesting that the full-year cost-cutting target may also be missed.