Thai low-cost carrier Nok Air saw a staggering increase in its first-quarter losses, led mostly by trouble at its now-shuttered long-haul subsidiary NokScoot.
Nok, which recently took a similar path as compatriot Thai Airways to file for business rehabilitation, reported an operating loss of Bt4.4 billion ($141 million) for the quarter ended 31 March, significantly higher than the Bt281 million loss it made the same period last year.
Revenue for the period fell nearly 25% to Bt2.6 billion, while expenses spiked 86% year on year to nearly Bt7 billion, led by an increase in administrative and financial costs.
Explaining the increase in expenses, Nok says that this was due to new financial reporting standards for leasing contracts, as well as allowances for NokScoot’s losses and depreciation.
NokScoot collapsed in late June, amid mounting financial woes exacerbated by the coronavirus outbreak.
Nok, which owned 49% of NokScoot, disclosed that the long-haul, low-cost unit made a loss Bt456 million for the quarter ended 31 March. This was more than three times the loss it reported the same period last year.
NokScoot saw revenue plunge nearly 35% year on year to Bt1.3 billion, on the back of a collapse in passenger travel demand. It carried only 250,000 passengers for the quarter, down from 410,000 the same period last year. Expenses, meanwhile, fell about 16% year on year to Bt1.7 billion.
Nok, which filed for business rehabilitation in late July, has not released its second quarter results yet.