NOK’s Turnaround Plan Backfires! 1Q19 Profit Plunges over 10 Times!
NOK has announced a net loss in the first quarter in 2019 at THB 304.16 million, decreased over 10 times from the same quarter of last year.
Nok Airlines Public Company Limited (NOK) has reported its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:
NOK has announced a net loss in the first quarter in 2019 at THB 304.16 million, decreased over 10 times from the same quarter of last year which recorded at THB 26.88 million.
The company asserted that with the turnaround plan, NOK urgently recover its business by releasing 2 operating aircrafts, ATR 72-500, out of the fleet for cost efficiency. Consequently, the total numbers of operating aircrafts were decreased from 25 Aircrafts at the end of 2018 down to 23 aircrafts by end of first quarter, 2019. It was correspondingly aligning with Flight Schedules in low season regarding aircraft utilization.
Nonetheless, reducing in numbers of aircrafts had caused several effects such the decrease in both available Seat Kilometers (ASK), numbers of flights, and especially the Chinese charter. Furthermore, another effect was the price war causing the declining in average airfare.
