BANGKOK -- Thai Airways International reported Friday that it incurred a 2018 net loss of 11.6 billion baht ($366 million), a fivefold increase from a year earlier that was driven by a sharp rise in costs.

Revenue increased 3% to 195.9 billion baht, but expenses shot up nearly 10% to 208.5 billion baht.

Thailand's flagship airline expanded its fleet and passenger capacity. Costs for leasing planes climbed roughly 30%, and expenses for fuel rose as well. Meanwhile, its passenger count fell 1%. The seat occupancy rate, or ratio of passengers to available seats, declined 1.6 points to 77.6%, and revenue per passenger was little changed. Competition from budget carriers also dragged down results.

Thai Airways has struggled to boost earnings in recent years. Since 2013, the company has posted an annual net profit only once, in 2016. It will skip dividends for 2018, the sixth straight year it will not offer a payout.

The Bangkok-based carrier sees brighter skies ahead in 2019 due to rising demand for air travel and lower fuel costs, while noting risks associated with the U.S.-China trade friction.

President Sumeth Damrongchaitham, who took the helm in September, says the airline will dispose of all accumulated losses by 2022 and get on a path to sustainable profit growth.