Thailand’s Nok Air 2Q revenue growth hampered by rising fuel costs

Rising fuel expenses, combined with the cost of operating new international routes, were behind Thailand LCC Nok Air’s THB749m ($22m) net loss for the 2017 Q2, narrowed from a THB864m net loss in Q2 2016. Nok Air’s total revenue increased 14.1% year-over-year to THB3.4b. Passenger revenue rose 7% as the airline increased its air fares, even as system traffic declined 2% during the quarter. Overall expenses were up 9% to THB4b, driven by a 39% increase in jet fuel expenses and a 6.4% rise in ground handling costs. The airline added two international charter routes (between Bangkok’s Don Mueang International Airport [DMK] and Yichang, China; and DMK-Baotou, China) during the quarter, totaling four new weekly round-trips. Additional costs associated with the airline’s acquisition of a new Boeing 737-800 in June contributed to the YOY rise. Thailand’s tourism industry is on the upswing, the company indicated, as the number of foreign tourists into Thailand increased 4.4% YOY during the first half of 2017 to 17.3m people. <br/>