Nok Air widens full-year loss as liabilities exceed assets

Embattled low-cost carrier Nok Air plunged deeper into the red for the 2020 calendar year, as revenue evaporated amid a collapse in passenger travel demand during the coronavirus pandemic. The carrier, which is currently undergoing a court-led business rehabilitation process, was also found to have liabilities exceeding assets by Bt16.2b ($501m), and a capital deficiency to the tune of just over Bt8b. The dire financial state of the airline prompted auditors to withhold their opinion on the carrier’s full-year financial results, which had been delayed for over six months. Citing other reasons such as the carrier’s restructuring process and the coronavirus pandemic, auditors from Deloitte Touche Tohmatsu Jaiyos Audit say that they had “not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion”. Nok posted a Bt7.4b operating loss for the year ended 31 December 2020, widening the Bt3.1b full-year loss it reported in 2019. Revenue for the period nosedived more than 66% year on year to Bt6.7b, as flying activity reduced amid travel restrictions both within and out of Thailand. Passenger revenue for the year fell 65% to Bt5.8b, with ancillary and service revenue also on the decline.<br/>