Nok Air (DD, Bangkok Don Mueang) announced that it received approval from its administration to obtain a new line of credit worth THB2 billion baht (USD54.4 million) from major shareholder Hatairat Jurangkool. According to a Stock Exchange of Thailand (SET) filing, the loan is granted at a 7% interest rate, with total interest due of THB140 million (USD3.8 million).

Hatairat Jurangkool owns 26.38% of Nok Air, as of February this year, and is the mother of CEO and bankruptcy plan administrator Wutthiphum Jurangkool. She is also the single largest shareholder in the low-cost carrier.

The objective of the loan is for working capital and operations in general, including payments in line with the rehabilitation plan, the filing says.

The carrier saw a significant increase in passenger revenues in 2023 and reported (including its subsidiaries) total revenue of THB8.750 billion (USD237.9 million) for the year, which marks an increase of 17.2% year-on-year. Additionally, it managed to turn from a loss in 2022 to a net profit in 2023 as total expenses decreased by 13.7% to THB8.703 billion (USD236.7 million). Nok Air’s net profit for 2023 was THB47.66 million(USD1.3 million) or earnings per share of THB0.01 (USD0.00027). That figure compares to a loss of THB2.6 billion (USD70.7 million) or THB0.70 (USD0.019) per share in 2022.

The growth in revenue came from adjusted fares, new business opportunities such as cargo operations, additional passenger services as well as the disposition of non-core assets like scrap parts and other equipment, the carrier noted in its annual financial statement. Furthermore, Nok Air said that revenue rose on increasing service standards and promotions which helped boost sales. Meanwhile, the LCC stated that it is also carrying out expense management such as streamlining efficiency, aircraft rental cost management, maintenance cost management, cutting fuel costs, and introducing new services.

Nok Air ended DHC-8-Q400 operations in the second quarter of 2023 and now has a fleet of fourteen B737-800s, ch-aviation fleets data shows. The airline has been implementing its restructuring plan for almost three years and previously obtained a loan from Hatairat Jurangkool worth THB280 million baht (USD7.4 million).