Thai Airways International is considering expansion of international services after scaling down operations in the past two years.
A restructuring scheme over the period included cutting unprofitable routes and reduced operating costs.
The airline trimmed net losses in the three months to September to 1.6 billion baht ($45 million) against a loss of 9.9 billion baht the same period last year, latest figures show.
The carrier posted an operating loss of 836 million baht, improved from a loss of 3.4 billion baht a year earlier as fuel expenses dropped 33.6% and the number of passengers rose 7.6% to 5.5 million.
An impairment loss on assets and aircraft of 624 million baht was booked for the quarter, but the carrier recorded gains of 120 million baht from foreign exchange.
President Charamporn Jotikasthira said Thai was continuing with a second phase of its transformation plan.
This includes building on the airline’s strengths in various areas and using information technology to improve revenue management and other services such as fare management system to respond rapidly to competitive fares in the marketplace.
It is also working on improving route network connectivity.
The airline’s management claims this will lead to “sustainable growth” in 2017.
Thai took delivery of one Airbus A350-900XWB in August and decommissioned a leased Boeing 777-200. The airline has a fleet of 94 aircraft in service – down one from a year ago.
Analysts expect the airline to record a profit in the fourth quarter thanks to the high travel season and low fuel prices.