Drukair’s goes from loss to profit

Drukair, the national carrier, made a profit of Nu 99.03 million in 2016, a vast financial improvement from 2015 when it suffered a loss of Nu 32.44 million, according to the airline’s annual performance report.

Drukair operated 4,433 flights in 2016, an increase of 240 flights compared to the year before, and ferried 233,570 passengers. This is an increase of 24,148 passengers and a 12% increase from 2014.

The increase in passengers was attributed to schedule optimisation where flights were strategically operated based on demand and booking status. The report states that Drukair achieved a load factor of 75% in 2016, which is a seven percent increase compared to 2015.

During the annual DHI press conference Drukair CEO, Tandi Wangchuk, said had it not been for the hailstorm strike in April last year that grounded one aircraft for six weeks,  which led to loss of revenue the company could have performed better.

The company, after discussing with its board, resolved the company would not be able to declare any dividends considering the need to build the capital base to finance future growth and replace Drukair’s weathering aircraft.

The annual performance report states that Drukair retained 69% of the overall market share with an average of 56 passengers per flight on competitive routes in 2016. Drukair retained 62% of the market share on Bangkok sector, 76% on Kathmandu sector, 59% on Kolkata sector and 81% on the Delhi sector.

Total revenue for the year was Nu 3,056.13 million compared to Nu 2,897.26 million 2015. The company recorded 7.35% increase in traffic revenue.

Drukair also recently won Changi Airport’s best airline marketing award 2017 for the second time. The company won the same award in the year 2013.

According to the press release by the Changi Airport, Drukair led by its Singapore representative, Druk Asia, exhibited in Travel revolution Fairs, where the company came up with unique Bhutan travel packages and organized the first Bhutan Travel Expo in 2016 at Takashimaya shopping Centre basement. It is also noted that flights between Paro and Singapore have not been disrupted for the last five years. Drukair also appointed General Sales Agent and Drukair representatives across Asia Pacific and Europe.

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