News
Nok Air capacity declines to near 80% for latest quarter
September 4th 2020
Nok Air’s financial accounts, published this week, reported the Thai LCC had cut capacity by close to 80% in the three months to June 30, 2020 in response to COVID-19. Read More »
The airline’s fleet of 14 737-800s and eight de Havilland Q400 turboprops had an average utilisation of 2.17 hours for the quarter, down 77.4% from 9.61 hours in the prior corresponding quarter.
The reduced flight activity was reflected in a 78% decline in available seat kilometres (ASK) and an 80% decline in revenue passenger kilometres (RPK).
Passenger numbers for the quarter fell 78.2%, to 440,000, from 2.02 million in the same quarter a year ago.
Nok Air reported a net loss of 787.2 million baht (US$25.1 million) for the three months compared with a net loss of 796.4 billion baht in the same quarter in 2019. Revenue dropped by 49%, to 1.54 billion baht, Nok Air said in a regulatory filing to the Stock Exchange of Thailand.
In July, the carrier applied to Thailand's Central Bankruptcy Court to undergo a business rehabilitation plan, due to the on-going situation regarding the COVID-19 pandemic.
It said at the time it had "no intention to terminate or liquidate its business" and remained committed to continue operations and return to profitability.
The process through the bankruptcy court, as well as the impact of the coronavirus pandemic and a lack of liquidity, were significant matters raised in the auditor's report in the financial accounts and gave rise to a “material uncertainty to the ability to continue as going concern”.
Auditor Deloitte Touche Tohmatsu Jaiyos Audit, said: "We do not express a conclusion on the accompanying consolidated interim financial information of Nok Airlines Public Company Limited and its subsidiaries and the separate interim financial information of Nok Airlines Public Company Limited as at June 30, 2020 and for the three-month and six-month periods then ended."
Nok Air CEO, Wutthiphum Jurangkool, acknowledged the auditors were "unable to provide comments on the financial statement" as result of the business rehabilitation process.
"This is a result of the COVID-19 outbreak that caused unprecedented impact on the aviation industry," Jurangkool said in a statement. It was Nok Air's aim to build a long-term sustained business operation under the business rehabilitation process, he said.
"Under the process, the company's rehabilitation plan has to be approved and implemented. The business is under significant uncertainty, which raises the question of uninterrupted business operations," the Nok Air CEO said.
