Thai Airways has reported a net loss of 1.53 billion baht for the second quarter of 2012 compared to last year.

Despite an improvement in passenger numbers, aggressive promotions and fierce competition dragged down passenger yields in the period that is low season for tourism in Thailand.

The report released by the airline stated it was still subjected to unfavourable world economic situation, intensified competition, which is the constraint for THAI facing difficulty to increase the selling price.

The net loss was smaller than the 7.87 billion baht loss the Thai carrier made a year earlier however was comparable with the profit of 3.64 billion baht in the first quarter for 2012.

Thai Airways expects to return to net profit in the third quarter when the tourist season starts.