Nok Air is expecting to gain a windfall during the partial lockdown as other airlines have reduced flights or suspended operations. Meanwhile, its long-term plan is to add more aircraft as tourism rebounds.
Chief executive Wutthiphum Jurangkool said more passengers are choosing to buy tickets at Don Mueang airport after their flights were cancelled, similar to the lockdown in April last year.
Nok Air has 20 flights scheduled per day, down from 40-60 flights prior to the third wave.
He said the airline is trying to maintain its flight schedule to preserve its customer base and stands ready to add frequency when there is demand for essential travel and medical purposes.
Before the partial Covid-19 lockdown, the cabin factor was 60% and the overall cabin factor in July is expected to be 60%-70%.
"Even though the airline is operating with a loss of 100,000-200,000 baht per flight for jet fuel, a value that excludes back-office operations and other fees, we have to carry on serving passengers," Mr Wutthiphum said.
Nok Air is aiming to serve more than 2 million passengers this year under the condition that the government can effectively contain the outbreak and implement new tourism stimulus schemes by the end of the year.
He said when more types of high-quality vaccines are widely distributed by the end of the year, it will take until the first quarter of next year to create immunity and allow the country to fully reopen at which time the airline will see significant improvement as international flights resume.
Last June, the airline filed a rehabilitation petition with the Central Bankruptcy Court and submitted a rehabilitation plan on May 17. It is set to meet creditors who will vote on the plan in August.
Mr Wutthiphum said there are two creditors from an overall 211 who have asked to postpone the meeting but it depends on whether the court will approve their request or not.
Under the rehabilitation plan, the airline plans to request loans or raise funds from its shareholders this year to support future business growth, particularly fleet expansion of two to three jets each year. However, it cannot reveal the loan value at this moment.
He said a global tourism rebound may take place at the end of 2024, so the airline has to prepare for the long-term with an extended fleet from 22 aircraft currently.
However, the Transport Ministry has to speed up the approval process of importing new aircraft to allow airlines to add more capacity.
Nok Air is waiting for further approval for six Boeing 737-800 aircraft which it submitted last year.