NOK: Stay Grounded, Stay Healthy
NOK: Stay Grounded, Stay Healthy 
NOK: Stay Grounded, Stay Healthy
8 ก.ย. 2563

Nok Airlines Public Company Limited (NOK)’s operating result for the first quarter of 2020 was severely hit by the Covid-19 pandemic, the company reported a loss of 2,330 million despite less than a month affected 
But in the second quarter NOK’s loss decreased to 139 million baht, declined both YoY and QoQ…interestingly!  
Unlike other airlines, Thai Airways International Public Company Limited (THAI) reported a net loss of 5,339 million baht in 2Q20F, dropping from a 22,676 million baht loss in 1Q20F. A steep decline in the company’s business has prompted THAI to fill for rehabilitation, which is still in a difficult situation.     
Followed by Asia Aviation Public Company Limited (AAV), the firm recorded a net loss of 1,141 million baht in 2Q20F, further loss from a 671 million baht loss in 1Q20F. Meanwhile   Bangkok Airways Public Company Limited (BA) also had a similar fate, the loss for the second quarter was 2,974 million baht, deepening loss from 338 million baht in 1Q20F.
How NOK could minimize its loss…?
NOK’s management discussion and analysis quarter 2 showed that the total revenue was 1,544 million baht, decreasing 48.85% from 3,020 million baht a year ago. Passenger revenue was 634 million baht fell 76.52%YoY, service revenue dropped to 135 million baht or a 52.60% decrease YoY, while other incomes was 774 million baht, jumping 2,350.40%YoY.
While the expenses declined from 3,633 million baht to 1,475 million baht, a 59.39% fall, consisting of a 67.24% decrease in cost of passenger and services to stand at 1,106 million baht. Selling expenses decreased 83.68% to 4 million baht and administrative expenses fell 26.41% to 163 million baht.
It could say that less flight means less loss…NOK apparently has an expense problem. 
NOK has been struggling with loss for a while…in 2016, total revenue was 16,938 million baht with a loss of 2,795 million, while net profit margin was -16.5%. In 2017, total revenue was 20,376 million baht with a loss of 1,854 million, while net profit margin was -9.10%. In 2018, total revenue was 19,740 million baht with a loss of 2,786 million, while net profit margin was -14.12% and in 2019, total revenue was 19,969 million baht with a loss of 2,051 million, while net profit margin was -10.27%.
As of 2Q20F, the deficit of NOK is as high as 12,777 million baht. And total liabilities already exceed 34,870 million baht, which overcomes the total assets of 28,948 million baht.   
Resulting in seeking a rehabilitation plan the same as THAI…It may be the best solution for NOK and creditors…