BANGKOK, 8 June 2018: NokScoot, a low-cost carrier based in Bangkok, performed robustly in the first quarter reporting a net profit THB37.05 million, according to its financial results.
The January-March results were in line with strengthened flight operations, higher passenger tally, increased fares and enhanced yields, the airline reported.
The airline said it was on track to declare its first full year of profitability since it was formed in 2014.
A joint venture between Thailand’s Nok Air and Singapore-based Scoot, the Q1 profit of THB 37.05 million (USD 1.15 million) was up sharply from THB 9.99 million (USD 1.15 million) recorded in the same period last year.
“We are pleased with the first quarter results as they bode well to our target to report a healthy 2018 year-round performance,” said NokScoot CEO Yodchai Sudhidhanakul.
The airline is facing fierce market competition and expects higher fuel prices, although the management said it was confident it would turn its balance sheet around, despite a difficult business environment.
“We think we can manage the higher fuel prices envisaged this year and that factor should not hinder our 2018 profit forecast,” Yodchai added.
Its revenue soared by 32.90% to THB 1.77 billion (USD 54.90 million) compared with THB 1.33 billion (USD 41.30 million) a year ago, while total costs grew at a lower rate than revenue despite a spike in fuel prices.
The quarter saw NokScoot boosting its average fare per passenger by 10.20% from the previous period.
The airline carried 311,165 passengers in the first quarter, 57,909 more than the previous quarter. NokScoot raised its flight tally to 883, up from 684 in the previous quarter, thanks to the deployment of an additional aircraft that increased fleet strength to four Boeing 777-200 wide-body jets.
NokScoot expects to post THB 120 million (US$ 3.72 million) in net profit for 2018. The airline’s revenue is expected to break the THB 10 billion (USD 310 million) barrier for the first time this year. Instrumental to the growth projection will be the airline’s increased network, flight frequencies, fleet size, greater passenger volumes and revenue boost.
For the whole of 2018, NokScoot projects it will carry 1.88 million passengers, 76% more than in 2017.
Later this year will see NokScoot introducing more flights to Japan, South Korea and India.
This year’s network expansion was spearheaded, 1 June, with the launch of Bangkok-Tokyo (Narita) daily services.
