NokScoot is moving to expand to Japan, South Korea and India this year, with hopes of a profitable turnaround for the first time.
Chief executive Yodchai Sudhidhanakul said the airline expects to commence Bangkok-Narita and Bangkok-Osaka routes in Japan and Bangkok-Incheon in South Korea by the second quarter of this year.
New links between Bangkok to New Delhi and Bangkok to Mumbai are set to begin in the second half.
Mr Yodchai said the airline resumed its operational plan to Japan and South Korea after the International Civil Aviation Organisation (ICAO) removed Thailand's red flag last October.
ICAO's removal allows airlines registered in Thailand to operate or expand their networks overseas, including to Japan and South Korea.
"Japan and South Korea are the first destinations for us, going back to when the company was formed in 2014," Mr Yodchai said. "However, we could not operate there after the ICAO restrictions. We are ready now."
Mr Yodchai said the big move will be reflected in the company's revenue and financial results.
Yodchai Sudhidhanakul, NokScoot's chief executive, says fluctuating oil prices remain a key point of concern.
NokScoot recorded a massive loss in its first year of operations in 2015, at more than 1.2 billion baht. The next year it remained in the red at 600 million baht, while last year it reported a 60-million-baht loss.
ICAO's safety warning rendered the airline unable to operate in high-demand markets like Japan and South Korea as planned.
"New routes are pending regulatory approval," Mr Yodchai told media yesterday. "If our flights to Japan and South Korea take off as planned, our combined revenue this year would be boosted by more than 80% to 10 billion baht and turnaround to profit for the first time to about 100 million baht. The expansion will be raising total passengers to nearly 2 million this year."
The airline operates medium- and long-haul routes from Bangkok's Don Mueang airport with Boeing 777-200 aircraft. It flies to Nanjing, Qingdao, Tianjin, Shenyang and Dalian in China, and Taipei in Taiwan.
This year, the airline is scheduled to receive one Boeing 777-200 in the second quarter, adding to four existing aircraft. The airline leases all aircraft from Singapore Airlines, which wholly owns subsidiary Scoot, the partner of NokScoot. NokScoot is set to receive two aircraft each year going forward to help increase capacity.
Mr Yodchai said the airline industry is expected to remain in dire straits as existing players expand, particularly into high-demand markets such as Japan and South Korea. However, this also will bring opportunities for growth.
The CEO also pointed to the fluctuation of oil prices as another key issue of concern, as the airline business could be disrupted if prices rise.
NokScoot has yet to hedge for oil prices because it is too small compared with other airlines.
According to financial results, NokScoot's revenue grew by 44% last year from the previous year to 5.6 billion baht, carrying 37% more passengers to register 1.1 million, while boosting its cabin factor to 87%, up from 79% a year earlier.
The airline expected to increase cabin or load factor to 87-88% this year from the new route expansions.