Financial Round Up
Thai Nok Air’s losses shrink
September 9th 2014
Nok Air, Thailand’s second-largest LCC after Thai AirAsia (TAA), said it expected a lower net loss in the third quarter than in the second, and aims at turning a profit in the fourth due to a rising trend in passenger numbers. Read More »
Nok Air, which is 39.2% owned by national carrier Thai Airways International, has reported a net loss of THB160 million (US$5 million) in the second quarter versus a profit of THB260 million a year earlier.
The budget carrier’s sobering results are in line with the financial performance of TAA, which has posted a rare THB318 million (US$10 million) loss in second-quarter 2014, following 18 consecutive quarters of profits.
The Thai market has seen a large increase in capacity in recent months with new start-up Thai Lion Air and Nok Air providing most of the added seats, whilst putting pressure on yields as supply outpaces demand. The timing for expansion has been unfortunate, given Thailand’s slump in overseas visitors, particularly from East Asia and Europe, amid ongoing political instability.
