Nok Air impacted by overcapacity, increased competition and political unrest in 2014

Nok Air reported (27-Feb-2015) challenges from overcapacity, increased competition and local political unrest in 2014. Domestic services operated by LCCs increased 18.6% year-on-year while domestic passenger traffic increased 10.1%. The airline was also affected by the weakening Thai baht and increasing fuel prices. Nok Air accrued 65% of its total operating costs in foreign currency in 2014, primarily aircraft lease, maintenance and fuel expenses. Fuel accounted for 36% of the airline's total operating costs. The company also reported losses related to the establishment of NokScoot. [more - original PR]