INTERVIEW-Airports of Thailand hopes to avoid loss despite slump

* Sees revenue down more than 10 pct this business year

* Hopes to avoid net loss through cost-cutting

* Expects recovery from November in tourism high season

BANGKOK, July 16 - Airports of Thailand <AOT.BK> (AOT), the country's main airport operator, said on Thursday a slump in passenger numbers and flights because of the global recession and flu pandemic would hammer its revenue this year.

But it hopes to avoid making a net loss in its business year to end-September by cutting costs, newly appointed President Serirat Prasutanond told Reuters.

AOT expected revenue to drop more than 10 percent this year from the 22 billion baht ($647 million) it made last year.

"This year is the worst year for the aviation industry in 30 years," Serirat, 58, who took the top job early this month, said in an interview. "There'll be no improvement over the next three months, due to the low season and flu fears."

"However, from our statistics on flu outbreaks, a drop in tourism should not last long. We believe it should pick up this winter if there is no more trouble," he said, referring to Thailand's political unrest, which flared up again in April.

"What we are trying to do is cut costs in line with a drop in revenue. That should prevent us from making a net loss," Serirat added.

Tourist arrivals could fall 15-20 percent from last year's 14.5 million, according to the University of the Thai Chamber of Commerce.

Thailand has reported 4,057 cases of H1N1 since mid-May and 24 deaths from the virus.

Majority state-owned AOT operates the country's six major airports -- Suvarnabhumi and Don Muang in Bangkok, Hat Yai, Chiang Mai, Chiang Rai and Phuket -- which handle around 90 percent of total air traffic in the country.

The firm, which cut landing fees 30 percent from May 1 in an effort to stimulate aircraft traffic, earns 40 percent of its revenue from passenger fees, 20 percent from landing fees and the rest from other sources, including rental from airport shops.

SLUMP IN PASSENGERS

In the first eight months to May, it carried 33.4 million passengers, down 19.5 percent on the year, while flights dropped 17 percent. But Serirat expected passenger numbers to recover next business year, forecasting an increase of about 6 percent.

The company's net profit in the January-March quarter fell 42 percent to 1.83 billion baht, due mainly to weaker operating profits plus the absence of exceptional gains made a year before.

After a week-long closure of Suvarnabhumi airport by anti-government protests late last year, it made its first-ever loss in the October-December quarter. Its first-half profit was just 154 million baht compared with 3.5 billion a year before, when the company booked gains from a court case.

Four analysts polled by Reuters Estimates expect AOT to report a net profit of 1.45 billion baht this fiscal year, down sharply from 7.32 billion a year earlier.

AOT is expected to get cabinet approval by early 2010 for an extension of Suvarnabhumi airport worth about 11 billion baht ($323 million), adding a domestic terminal and a third runway and expected to completed in 2013.

"This should help add 20 million passengers (a year), from 45 million now," Serirat said, adding that funding should come from the company's cash, now about 20 billion baht.

Shares in AOT, valued at $1.13 billion on the bourse, ended down 0.93 percent at 26.75 baht, while the broad market <.SETI> fell 0.87 percent. ($1=34.02 Baht)