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Nok’s bottom line back in black

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BANGKOK, 20 March 2018: Nok Air says its bottom line is back in the black during three months, December 2017 through to the end of February this year.

The stock exchange of Thailand listed airline reported a net profit of THB 104.71 million marking a significant improvement from a THB 317.60 million loss posted over the same period last year.

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

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

Nok Air CEO Piya Yodmani said: “It is gratifying to see that our endeavour to regain our financial strength has begun to pay off robustly and we will strive to continue this trend.”

Revenue generated, 1 December 2017 to 28 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 use 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 passengers, up from 83,190 over the same period, due to the airline boosting its China-Thailand charter business.

Piya stressed that the decline in maintenance costs seen in the period was not the result of cutting corners, claiming reliability and safety of aircraft remained a top priority.

The three-month signals a more robust performance in the future as Nok Air regains profitability.

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

For the whole of 2018, Nok Air targets a revenue boost of THB 2.8 billion to reach THB 16.8 billion while passenger numbers should increase to 9 million from 8 million in 2017; lifting the cabin factor to 93%, up from 86%.

(Source; Nok Air)

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