BANGKOK, 2 September 2020: Nok Airlines Public Company Limited suffered a loss of THB3,750.61 million during the first half of 2020 up from TH1,187.70 million year-on-year.
Its management analysis, presented to the Stock Exchange of Thailand on Monday, blamed the loss on the ongoing Covid-19 pandemic that has impacted on global demand for air transportation.
But the local shutdown from March to May 2020 resulting in the suspension of international flights continue to disrupt the airline’s performance. The airline is left with just domestic services.
Other contributing factors included a new accounting standard which came into effect 1 January 2020 leading to a new reporting on foreign exchange losses linked to long term leasing contracts with foreign partners.
Financial losses leading up to the 29 July liquidation of NokScoot Company Limited, a joint venture with the Singapore Airlines Group also impacted on the half-year balance sheet.
Revenue during the first half reached THB 3,367.61 million a drop of 47.96% while operating costs totalled THB 5,425.03 million down 26.45%.
In H1 2020, passenger revenue was THB2,919.21 million a reduction of 49.12% from the same period in 2019.
Cabin factor declined from 88.35% to 79.16% or 9.20 percentage points. Flight movements reduced by 44.26% from 31,562 to only 17,592.
Aircraft use dropped from 9.48 hours/day to 5.64 hours or 42.68%.
Transportation and service costs totalled THB4,053.04 million or a reduction of 41.32% due to reduced flight operations and cheaper fuel costs that declined 56.69% The fuel cost/ASK reduced from 0.67 baht/seat-km to 0.52 Baht/seat-km