NOK AIR shrank its losses in the first quarter of this year, with the struggling airline yesterday pointing to improvements in operating metrics on its path to recovery.
Consolidated losses from January to March narrowed to Bt26.88 million from the Bt295.57 million loss incurred for the same period of last year, the carrier said.
Revenue grew by 5.6 per cent from the same quarter of last year to Bt4.32 billion as the average cost per seat declined, cabin factor improved and more passengers were carried, despite the rise in fuel costs.
“The result is better than expected and it clearly shows that our business turnaround plan has continued to bear fruit and we are on the right course for recovery,” Nok Air chief executive Piya Yodmani said.
The adoption of marketing initiatives allowed Nok Air to capture several market segments, and increased competitiveness, stricter cost control enforcement and productivity enhancement have contributed to an improved financial result, he said.
Those improvements allowed Nok Air to better deal with the 23.2 per cent increase in fuel costs in the period, Piya said.
The airline was able to fill more seats in the quarter, achieving an average cabin factor of 93.8 per cent, 6.1 points higher than last year in the same quarter.
This year the airline carried 3.83 per cent more passengers with a tally of 2.52 million, up from 2.43 million in the same period last year, thanks to a surge in passengers on its expanded Chinese traffic.
The quarter saw Nok Air increase aircraft utilisation by 21.5 per cent to 10 hours per aircraft per day from 8.23 hours, contributing to higher productivity.
Piya said at the end of the quarter, Nok Air operated a fleet of 29 aircraft, down from 31 a year ago. The airline added two domestic routes in the first quarter to a total of 25, while its international scheduled routes remained unchanged at three.