Nok Air reports 2014 2nd quarter and 1st half results

Nok Air has announced results for the second quarter of its fiscal year, which ended on 30 June 2014, in which the company reported a net loss of THB159.7 million, which declined by THB419.9 million or 161.4% from the same period of previous fiscal year.

The company continued to face challenging competition in the domestic market from 4Q13 into the first half of 2014, partly due to the unstable political situation in Thailand. However, domestic airlines, including Nok Air, continued to expand their aircraft fleets and flight frequencies.

Compared with the same period in 2013, Nok Air’s flights increased 16% to 27,798 flights. The load factor fell from 87.0 in 1H13 to 77.7% in 1H2014, although the number of passengers went up by 23% to 3.49 million from the respective 2013 period because of the seat configuration of Boeing 737-800 aircraft, carrying up to 189 seats.

In the second half of 2014, Nok Air plans to acquire 5 additional aircraft – one Boeing 737-800 and four Bombardier Q400s – to help introduce new routes and add more domestic flights in order to maintain its market share. The new routes are Bangkok–Khon Kaen (already under way) and Bangkok–Lampang, which will begin in October.

For 2Q14, the total revenue was THB2,830.5 million, up 8.1% over 2Q13. Passenger revenue was THB2,607.2 million (92.1% of total revenues) while service revenues and other income totalled THB223.3 million (7.9% of total revenues).

Available seat kilometres (ASK) were increased 29.7% to 1,288 million while revenue passenger kilometres (RPKs) rose by 16.5% to 1,001 million. As a result, as mentioned, the load factor decreased from 86.5% in 2Q13 to 77.7% in 2Q14.

For 2Q14, the total expenses rose 27.7% to THB2,998.4 million Baht, wich the airline attributes to the increase in ASKs. The depreciation of Thai Baht against the US dollar also contributed to the company’s increased 2Q14 expenses.

Overall, from its operations the company had a 2Q14 loss before income tax of THB169.2 million, a decrease of 162.7% from 2Q13.

For 1H14, the company’s total revenue was THB5,963.5 million, an increase of 9.5% from 1H13. Total expenses were THB6,082.4 million, up 28.3%. The company’s loss for 1H14 was THB118.8 million, a decrease of 117.3% compared with the first half of 2013.

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