NOK’s 2Q Net Loss Decreases to ฿675m after an Efficiency of the Turnaround Plan

Nok Airlines Public Company Limited (NOK) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

NOK reported its 2Q19 net loss of THB 674.12 million, decreased 18.76% YoY. NOK’s revenue was THB 3,040.89 million decreased at 9.35%. It consists of THB 2,702.91 million to passenger revenue which was 88.89% of total revenue, THB 296.64 million to service revenue which was 9.75% of total revenue and THB 41.34 million to other income which was 1.36% of total revenue. It was mainly caused by declining in Available Seat Kilometers (ASK) as a result of reduction of Aircraft fleet which the Average Number of Aircraft decreased 18.48% from the same period of last year, including market price competition into the low season. Nevertheless, Revenue per Available Seat-Kilometer (RASK) rose to THB 1.89 per seat-kilometers, increased 3.28 % from the same period of last year. 

NOK’s operating expenses in total were THB 3,633.77 million decreased from THB 4,097.30 million, or 11.31% YoY mainly from the reduction of aircraft fleet as well as decrement of Jet fuel price which affected to NOK’s fuel cost (variable cost) also 5 decreased by 13.86 percent.
Furthermore, the company can reduce in both aircraft maintenance expenses and aircraft operating lease by cost savings according to the company’s turnaround plan, or decreased by 17.00 percent and 5.41 percent respectively.
Consequently, Cost per Available SeatKilometers (CASK) decreased from THB 2.31 to 2.21 per seat-kilometers or decreased by 4.33%. Similarly, Cost per Available Seat-Kilometers excludes Fuel (CASK ex-fuel) decreased from THB 1.61 to 1.54  per seat-kilometers, or 4.35% YoY.