Nok Air turns black in 3-month to Feb 2018

Bangkok, (March 19, 2018) - Nok Air has started to witness a tangible result from its business turnaround plan that is gaining traction.

The SET-listed budget carrier's bottom line has advanced to the black zone, with a net profit of THB 104.71 million recorded in the three months to February 2018, a significant improvement from THB 317.60 million in loss posted over the same period of previous year.

Mr. Piya Yodmani, Nok Air CEO said, "It is gratifying to see that our endeavor to regain our financial strength has begun to pay off robustly and we will strive to continue this trend." 

Preliminary figures showed improvement in key parameters, propelled by the strengthened operational efficiency, lower costs and higher traffic volumes, despite dearer fuel prices.

Revenues in December 2017-February 2018 soared 12.3% year-on-year to THB 4.37 billion, passenger volumes were up 4.1% to 2.54 million, and cabin factor rose to 93%, up from 86% in the previous period.

Aircraft maintenance costs dropped by 31.6%, representing 16% of Nok Air's total costs as compared to 23% in the previous period.

Aircraft utilization has increased by 23.1%, with an average of 9.96 hours per day per aircraft, up from 8.09 hours earlier.

Passenger traffic on its Chinese routes jumped 182.9% in the period to record 235,303, up from 83,190 previously as SET-listed Nok Air boosted its China-Thailand charter business.

Mr. Piya cautioned that the decline in maintenance cost seen in the period was not the result of cutting corners, stressing that ensuring reliability and safety of aircraft is a top priority at Nok Air.

The 3-month period bodes well for more robust performance in the future as Nok Air is steadfast to return to profitability and being an airline of choice for passengers, according to Mr. Piya.

In spite of difficult operating environment, marked by intense market condition and rising fuel prices, we look forward to 2018 with optimism and confidence, he added.

For the whole of 2018, Nok Air targets to boost revenue by THB 2.8 billion from last year’s level to THB 16.8 billion; boosting passenger numbers to 9 million from 8 million in 2017; raising cabin factor to 93%, up from 86%.

Nok Air narrowed its losses last year to THB 1.85 billion, from THB 2.8 billion in 2016.