BANGKOK, 20 February 2018: Nok Air will target a revenue increase of THB 3 billion while boosting passenger traffic by 4% to 9 million, and increasing available seat kilometres by 29%.
The airline increased its available seat kilometres (ASK) by just 8% last year and raised revenues to THB14 billion.
In a wrap-up of its 2017 performance and plans for 2018, the airline said it would increase the proportion of revenue from international flights to 40% up from 20% share last year.
The airline’s focus on China will see an increase in frequencies on existing routes plus new services under consideration for 2018, which will drive the growth in international revenue.
Revenue from domestic flight operations would reduce to 60% from 80% as reported in 2017.
Nok Air’s chief executive officer, Piya Yodmani says he is determined to forge closer collaboration with Thai Airways International and THAI Smile to develop codeshare flights and create more flexibility when booking Nok Air.
One example of a codeshare will be a Bangkok Don Mueang (DMK) to Mae Hong Son flight that will be sold 
on all the partner websites once it starts 25 March. But there are concerns a flight from Bangkok direct to Mae Hong Son will not fit tour itineraries that combine various destinations such as Chiang Mai and Pai. Efforts to establish a direct service in the past failed.
On the international side of business, Nok Air is studying the introduction of scheduled flights to India by June this year.
Nok Air ended 2017 carrying 8 million passengers, increasing revenues by 11%, opening 19 new routes to China and adding two Boeing 737-800 aircraft.
The retirement of one B737-800, last year, helped to reduce maintenance cost and the increase of aircraft use from seven to 10.4 hours daily. The target this year is 12 hours.
The airline CEO pointed out that Nok Air had successfully introduced ‘Choose Your Nok’ fares concept that eliminated free check-in luggage for the cheapest travel option.
It also establishing U-Tapao International Airport as a second hub for services to China and opened a new direct service between Yangon and Mae Sot.
Last year was not particularly outstanding for the airline having closed with similar passenger volume as 2016, and recorded an average cabin factor of 86%, up just one percentage point on 2016.
However, overall the 2017 result was strengthened by a strong performance in the fourth quarter. Revenues in the quarter climbed 16% from the same quarter 2016 to THB3.9 billion, while passengers carried edged up 5% to 2.4 million, and ASK increased 14%.
In 2017, the airline started new routes to China including Baotou, Changsha, Chengdu, Datong, Haikou, Linyi, Mei Xian, Nanchang, Nanning, Nantong, Yancheng, Yinchuan, Yichang, Zhengzhou, and Zunyi from Don Mueang, U-Tapao, Phuket, and Chiang Mai.
Nok Air also commenced new direct services between Yangon and Mae Sot.
In 2017, Nok Air added two B737-800 aircraft, bringing the fleet size at year-end to 30 including 20 B737-800s, eight Bombardier Q400s, and two ATR72-500s.
(Source: Nok Air)
