Air Astana Group 9M 2023 Financial Results

12 December 2023

Air Astana Group IFRS Financial Results

for the 9 months ending 30 September 2023

Air Astana Group delivers profitable growth on strong passenger demand and network expansion

Almaty, Kazakhstan - Air Astana Group ("the Group"), the largest airline group in Central Asia and the Caucasus regions by revenue and fleet size, today announces its financial results for the nine months ending 30 September 2023 in accordance with International Financial Reporting Standards.

Financial highlights

·    Strong nine-month performance with total revenue and other income growth of 20.5% to USD 900.6M (9M2022: USD 747.2M)

·    Operating profit increased by 11.2% to USD 128.9M (9M2022: USD 115.9M)

·    Profit increased by 18.7% to USD 72.4M (9M2022: USD 61.0M)

·    Adjusted EBITDAR¹ increased by 14.4% to USD 249.8M (9M2022: USD 218.3), with Adjusted EBITDAR margin² of 28% (9M2022: 29%)

·    CASK (Cost per Available Seat Kilometre) of USD 5.8¢ (9M2022: USD 5.4¢)

·    RPK (Revenue Passenger Kilometres) of USD 11.1B (9M2022: USD 9.7B)

Operational highlights

·    Total number of Group passengers carried increased 12% to 6.0M (9M2022: 5.4M) with an average load factor of 84% (9M2022: 83%)

·    Increased number of flights to key destinations such as the UK, Turkey, India, Thailand, Uzbekistan, Georgia, and the Gulf as part of a spring-summer operating schedule; and reinstatement of flights to China

·    Further expanded the Group's international network with new route to Jeddah post-period

·    Increased the Group fleet size to 49 aircraft post period

·    Commissioned a new Flight Training Centre in Astana, equipped with the latest generation flight simulators and certified by the European Aviation Safety Agency (EASA)

·    Air Astana was recognised for its outstanding passenger service delivery with the Skytrax award for "Best Airline in Central Asia and the CIS" for the eleventh time, and received the "Best Airline Staff Service in Central Asia and the CIS" award for the second time

·    Air Astana received a five-star rating in the major airline category by the Airline Passenger Experience Association (APEX), the ninth time Air Astana has received an APEX award

·    Adopted the Group's Low-Carbon Development Programme for 2023-2032, which is incorporated into the Air Astana Group's ESG Strategy and is consistent with Kazakhstan's goal to achieve carbon neutrality by 2060

·    Air Astana Group successfully completed the International Air Transport Association's Operational Safety Audit (IOSA) for the ninth time

Peter Foster, Air Astana Group President and CEO, commented:

"The Group has continued to perform well in 2023, despite the twin headwinds of high inflation and continued issues with the Pratt & Whitney 1100 engines on the Airbus NEO fleet. All markets have shown robust growth, and there is little indication that the strong demand which we have experienced since mid-2021 is flagging. The Group's Central Asian and Caucasus routes have benefited from the increased footprint of both Air Astana and FlyArystan into those countries, most of which are experiencing a significant increase in both business and leisure travel. Routes to East and South Asia have also performed well, including those to China, which are gathering pace after a slow start following the country's reopening from COVID. The Group has continued to prioritise high quality service delivery, and we were delighted that both Air Astana and FlyArystan won the top regional awards in their respective categories at the Skytrax World Airline Awards ceremony earlier this year."

[1] Defined as profit for the period before income tax (expense)/ benefit, finance income, finance costs, foreign exchange loss, net and depreciation and amortisation and lease costs (comprising aircraft variable lease charges, spare engine lease charges, lease of spare parts, property lease costs (office accommodation rent), rental of plant, machinery and ground equipment).

[2] Defined as Adjusted EBITDAR expressed as a percentage of total revenue and other income.

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About Air Astana Group

Air Astana Group is the largest airline group in Central Asia and the Caucasus regions by revenue and fleet size. As of the date of this announcement, the Group operates a fleet of 49 aircraft split between Air Astana, its full-service airline that operated its inaugural flight in 2002, and FlyArystan, its low-cost airline established in 2019. 

The Group provides scheduled, point-to-point and transit, short-haul and long-haul air travel and cargo on domestic, regional and international routes across Central Asia, the Caucasus, the Far East, the Middle East, India and Europe. In the year ended 31 December 2022, the Air Astana Group carried approximately 7.3 million passengers on approximately 52 thousand flights across 16 countries. The Group successfully recovered at a faster rate post-COVID in comparison to global averages and generated a CAGR in revenue of 60.6% for the three years ended 31 December 2022.

In 2023, Air Astana was recognised for the eleventh year as the "Best Airline in Central Asia and CIS" at the Skytrax World Airline Awards and received a five-star rating in the major airline category by the Airline Passenger Experience Association (APEX).