UPDATE 1-Thai Airways Q4 loss wider than expected, shares slide
* Q4 net loss 6.4 bln baht vs estimated 2.6 bln
* Q4 passengers down 9.8 pct on year to 4.78 mln
* Forex gain in qtr offset by fuel hedge losses-official
* Shares drop to 9-month low after earnings (Adds analyst comments and details of results)
By Khettiya Jittapong
BANGKOK, Feb 26 (Reuters) - Thai Airways International PCL posted a wider-than-expected fourth-quarter loss as a drop in passenger numbers after months of domestic political unrest hurt the national carrier, pushing its shares down to a nine-month low.
The performance raised concerns on whether the carrier can turn around quickly while it battles fierce competition and soaring debt, brought about by high operating costs and aircraft purchases in recent years.
The airline is one of Thailand's major state companies undergoing reform since the military seized power in May. It is expected to post further losses this year due to higher costs from restructuring, which involves cutting operating costs and capacity by 20 percent, selling aircraft and job cuts.
"Thai Air's business restructuring is unlikely to bear fruit in the near term and we see execution risk given the firm's inflexible cost structure and numerous stakeholder groups," Suppata Srisuk of Bualuang Securities said in a note.
Thai Airways, 51 percent owned by the finance ministry, has total debt of $5.9 billion, the highest among Southeast Asian airlines and ranking number 9 among 47 airlines in Asia Pacific, according to Thomson Reuters data.
The airline posted a net loss of 6.4 billion baht ($196 million) for October-December, compared with a net loss of 5.7 billion baht in the same period a year earlier. Six analysts surveyed by Reuters had forecast an average 2.6 billion baht net loss.
A foreign exchange gain of 3.2 billion baht in the quarter was wiped out by loss from jet fuel hedging, an airline official told Reuters.
For the whole 2014, net loss rose 30 percent to 15.6 billion baht, including a foreign exchange gain of 12.6 billion baht, the airline said in a statement.
Yearly revenue from sales and services dropped 8.7 percent to 188 billion baht, while passenger numbers declined 11.2 percent as it faced fierce competition from budget carriers.
"In the second half of 2014, passenger numbers improved from the first half, but dropped 6.4 from a year earlier, which made the airline miss revenue target," the statement said.
Earlier this month, Thai Airways president Charumporn Jotikasthira told Reuters the airline should return to profit in 2016 after the restructuring.
Thai Airways shares closed at 13.60 baht on Thursday, their lowest since May 2014, after the earnings announcement.
Valued at about $930 million, they have fallen 11 percent in the past three months, underperforming a 0.5 percent drop in the broad Thai index. ($1 = 32.60 Baht)