Nok Air can’t seem to turn its poor financial situation around. The company lost a record THB3.28 billion in 2016, it was recently revealed. This makes it the only airline listed on the Stock Exchange of Thailand to be operating at a loss.
Though a loss was expected for the company last year, it was larger than anticipated due to pumped-up operation costs and a decrease in income due to issues with their pilots in early 2016.
The loss was an astonishing 98 percent higher than 2015’s losses of THB1.66 billion, reported Bangkok Post.
The 12-year-old company may have placed another nail in their coffin with the recent announcement that they are halting free baggage checking for fliers that buy promotional tickets.
Part of what went wrong last year for the low-cost carrier was that their operation costs rose by 14 percent due to expanding their fleet and maintaining their aircrafts.
Their income dropped by almost 2 percent due to a lower number of fliers on domestic flights and tickets that sold for lower prices because of the intense price wars between the low-cost carriers in Southeast Asia.
Nok ferried 8.56 million fliers in 2016 but they delivered 8.76 million fliers in 2015.