Nok Air takes off again: Ready to ‘baht’ back in business
Nok Air is plotting a major comeback, with a 5 billion baht cash injection on the cards for 2025. The Thai low-cost airline, which entered business rehabilitation in 2021, is now eyeing an exit in 2026, as CEO Wutthiphum Jurangkool outlines a path to financial recovery.
In an interview with Bangkok Business, Wutthiphum revealed the funds will be used to acquire new aircraft, improve liquidity, and wipe out the last of its remaining debt. Since entering court-supervised rehabilitation, Nok Air has slashed its debt from 27.278 billion baht to just 400 million baht.
“We have paid down 5 billion baht already, and this next capital raise will help us complete our turnaround.”
Nok Air, which currently operates 14 B737-800s and serves 21 airports across Thailand, China, and India, is planning to bolster its fleet. After decommissioning its DHC-8-Q400s in 2023, the airline plans to lease four more B737-800s by 2025, followed by the purchase of six additional aircraft by the end of the decade.
“We’ve removed non-performing aircraft and focused on more efficient models to reduce maintenance costs and boost reliability.”
The airline’s recent financial results have been encouraging. In the first half of 2024, Nok Air posted a net profit of 734.78 million baht, a dramatic turnaround from a 388.24 million baht loss in the same period in 2023.
As part of its growth plan, Nok Air is expanding operations at Bangkok Suvarnabhumi, with new routes to Chiang Mai, Krabi, and Phuket. Additionally, Nok is partnering with Thai Airways and other international carriers to offer feeder flights.
With a passenger load factor of 85%, Nok Air is confidently flying towards a brighter future, reported ch-aviation.
ORIGINAL STORY: Nok Air’s future in turbulence: Delisting deadline looms
Nok Air (Bangkok Don Mueang) is in the hot seat once more, facing the threat of being delisted by the Stock Exchange of Thailand (SET). The clock is ticking as the airline has been given until September 8 to resolve its financial mess and get back to trading on the bourse.
The SET, in a July 31 announcement, laid down the law, demanding that Nok Air address its delisting grounds promptly. Trading in the low-cost carrier’s shares was halted in 2022 after multiple warnings to submit audited financial statements were ignored.
This wasn’t the first time Nok Air found itself in trouble. A brief suspension in 2021 for similar reasons set a precedent. Since the 2022 suspension, the airline has remained off the trading floor, with repeated SET warnings to get its financial house in order or face delisting.
“If the process cannot be completed within the specified time, the Stock Exchange of Thailand Board of Directors will consider delisting the common shares of the company from the list of listed securities.”
Adding to Nok Air’s woes is its ongoing restructuring. CEO Wutthiphum Jurangkool admitted last year that the airline might not wrap up the process within the five-year limit, which ends in the latter half of 2026. Despite these challenges, the low-cost carrier recently reported a net profit of 47.66 million baht for the 2023 fiscal year, marking its first profit in nine years.
Nok Air operates flights to 21 airports across Thailand, India, and China with a fleet of 14 B737-800s. The coming weeks will be critical as the airline races against time to comply with SET requirements and avoid being delisted, a move that could significantly impact its future operations, reported ch-aviation.
