Nok Air (DD, Bangkok Don Mueang) plans to raise THB 5 billion (USD 150.5 million) next year as it prepares for an exit from its business rehabilitation in 2026. CEO Wutthiphum Jurangkool informed Bangkok Business that the funds will be allocated for acquiring new aircraft, enhancing liquidity, and reducing outstanding debt.
When the low-cost carrier filed for court-supervised rehabilitation in 2021, it owed creditors THB 27.278 billion (USD 820.6 million). The rehabilitation administrator successfully negotiated this debt down to THB 5.4 billion (USD 162.4 million). Nok Air has since repaid THB 5 billion (USD 150.4 million), leaving a remaining balance of THB 400 million (USD 12 million).
According to Wutthiphum, as the airline continues its turnaround, it will focus on refining operations to cut costs and explore new markets to boost revenues. As per the ch-aviation PRO airlines module, Nok Air currently operates flights to 21 airports across Thailand, China, and India, using a fleet of fourteen B737-800s.
In the first half of 2024, Nok Air reported a net profit of THB 734.78 million (USD 22.1 million), a recovery from a loss of THB 388.24 million (USD 11.7 million) during the same period in 2023.
The last of the eight DHC-8-Q400 aircraft were retired in 2023, and Wutthiphum stated the company plans to purchase another six B737-800s, with deliveries expected over the next few years. Meanwhile, Nok Air is preparing to lease four additional B737-800s in 2025.
“We have significantly adjusted our business plan, eliminating non-revenue-generating aircraft and adding models that are in demand, while focusing on using a single aircraft type to lower maintenance costs and spare parts procurement,” said Wutthiphum. “After removing the Q400s, we quickly reduced our losses by eliminating maintenance costs and minimizing delays.”
The CEO affirmed that Nok Air will emerge from its five-year rehabilitation in a robust position, noting that the airline’s current passenger load factor is approximately 85%, projected to reach around 90% during peak season, equating to about six million passengers this year.
Wutthiphum also shared that Nok Air intends to establish a base at Bangkok Suvarnabhumi Airport to serve passengers on international flights. This will include adding Chiang Mai, Krabi, and Phuket to the destinations served from Bangkok’s largest airport. Additionally, Nok Air is collaborating with Thai Airways International, which holds an 8.91% stake in the airline, as well as other international carriers, to offer feeder flights connecting to and from international services.
