Nok Air, based in Bangkok Don Mueang, has announced the approval to secure a new credit line of THB2 billion (USD54.4 million) from its major shareholder, Hatairat Jurangkool. As per a filing with the Stock Exchange of Thailand (SET), the loan carries a 7% interest rate, totaling THB140 million (USD3.8 million) in interest payments.
Hatairat Jurangkool, who holds a 26.38% stake in Nok Air and is the mother of CEO Wutthiphum Jurangkool, serves as the largest shareholder of the budget airline.
The purpose of the loan is outlined for working capital and general operational expenses, including contributions to the company’s rehabilitation plan, the filing reveals.
Nok Air experienced notable growth in passenger revenues in 2023, reporting total revenue of THB8.750 billion (USD237.9 million), a 17.2% increase from the previous year. The airline transitioned from a loss in 2022 to a net profit in 2023, with total expenses decreasing by 13.7% to THB8.703 billion (USD236.7 million). The net profit for 2023 was recorded at THB47.66 million (USD1.3 million), equating to earnings per share of THB0.01 (USD0.00027), a noteworthy improvement from the loss of THB2.6 billion (USD70.7 million) or THB0.70 (USD0.019) per share in 2022.
The revenue surge can be attributed to adjusted fares, new business ventures such as cargo services, enhanced passenger amenities, and divestment of non-essential assets like spare parts and equipment, according to the airline’s annual financial report. Moreover, Nok Air emphasized that revenue growth was supported by improved service quality and promotional activities that stimulated sales. Concurrently, the carrier highlighted efforts in cost management, focusing on efficiency enhancements, aircraft leasing expenses, maintenance cost control, fuel cost reductions, and the introduction of new services.
Having phased out DHC-8-Q400 operations in the second quarter of 2023, Nok Air currently operates a fleet of fourteen B737-800s, based on ch-aviation fleets data. The airline has been executing its restructuring strategy for nearly three years and had previously received a loan of THB280 million (USD7.4 million) from Hatairat Jurangkool.
