Shares in Thai Airways International Plc have plummeted over the past 24 hours following confirmation that the airline will go into bankruptcy protection following cabinet approval later today.
Having opened at 4.58 baht on Monday morning, shares in Thai Airways fell to a low of 3.72 baht on Tuesday morning representing a decline of almost 20 percent in 24 hours.
Since the beginning of 2020, shares in the airline have plummeted a huge 38 percent, demonstrating the dire financial situation Thai Airways is currently facing.
Thai Prime Minister, Prayut Chan-o-cha, will today consider a proposal that would reconstruct the state-owned airline following a bankruptcy court filing.
It is widely expected that the proposal will be approved in the cabinet today, however, official confirmation has not yet been released.
Thai Airways was already in huge debt prior to the coronavirus pandemic that has grounded flights around the world. In 2019, the “Smooth as Silk” airline reported net losses of more than 1.2 billion baht.
As the covid-19 pandemic began causing lockdowns around the world in March, Thai Airways Chief Executive, Sumeth Damrongchaitham, quite his post.
Adding to the troubles of the airline is the ban on incoming international passenger flights to Thailand that was recently extended until at least the end of June.
Initially, a proposal was made by the government to bail out the airline with taxpayer money. However, that idea came under severe criticism and has now been scrapped in favor of a filing with the bankruptcy court.
Further announcements and details regarding the airline’s future are expected later today.
Source: Yahoo Finance