NokScoot, Thailand’s leading medium-to-long-haul low cost carrier, performed robustly in the first quarter of this year with significant improvements in major parameters.
The January-March results were in line with the airline’s strengthened flight operations, higher passenger tally, increased fares, enhanced yields and cost control exercise.
The airline, a joint venture between Thailand’s Nok Air and Singapore-based Scoot, reported a net profit of THB 37.05 million (US$ 1.15 million) in the quarter, up sharply from THB 9.99 million (US$ 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.
Despite the odds of fierce market competition and expected higher fuel prices, NokScoot is confident to fully turn its balance sheet around since its inception in 2014 this year.
“We think we can manage the higher fuel prices envisaged this year and that factor should not hinder our 2018 profit forecast,” Mr. Yodchai added.
Its revenue soared by 32.90% to THB 1.77 billion (US$ 54.90 million) compared to THB 1.33 billion (US$ 41.30 million) a year ago with 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, which were 57,909 over the previous quarter’s level. NokScoot raised flight tally to 883, up from 684 in the earlier period, thanks to the deployment of an additional aircraft that brought the fleet 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 (US$ 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 to carry 1.88 million passengers, 76% more than 2017’s numbers.
Later this year will see NokScoot spreading its wings to Japan, South Korea and India.
This year’s network expansion was spearheaded on June 1 with the inauguration of Bangkok-Tokyo (Narita) daily services.