Thai budget carrier Nok Air reported a third-quarter net loss of TBH353.3 million ($10.8 million), reversed from a net profit of THB244.6 million reported in the year-ago period.

The airline attributed the poor performance to slow recovery in Thailand’s economic activity, intense competition in the domestic resulting in a capacity glut, and discount pricing to stimulate demand in the low season.

Revenue for the quarter was virtually static year-on-year at THB2.8 billion, but costs were up nearly 24% to THB3.12 billion. Passenger load factor was 84.2% for the third quarter, up from 83.3% in the year-ago period. Yield was down 19.15%.

ASKs were up 20.56% to 1.27 billion and RPKs increased 21.87% to 1.07 billion year-over-year. Passenger numbers increased 29.3% to 1.89 million.

For the nine-month period to Sept. 30, Nok Air reported a net loss of THB417.86 million, a decrease of 150.74% compared to the same period last year.  Although revenue was up 6.3% to THB8.73 billion, costs increased 26.71% to reach THB9.21 billion, outstripping any improvement in revenue. The airline attributed the increase in costs largely to fleet expansion and increased flight frequency, as well as jet fuel costs, and maintenance and flight crew expenses.