Air Astana delivers solid profit growth in first results since IPO

Kazakhstan-based airline Air Astana delivered a double-digit increase in profits and key performance metrics after flying a record number of passengers in 2023, as it gave a positive outlook for the current financial year.

In its first set of results since going public in London and Kazakhstan last month, Air Astana reported an adjusted operating profit of $136m, up 12.9% on the previous year, while revenues rose 13.8% to $1.2bn.

Passenger numbers reached an all-time high of 8.1m for the year, up 10.1% on 2022, helped by an expansion in the group fleet to 49 from 43. This has risen to 50 since the year-end, and is expected to increase to at least 56 by the end of the year.

Meanwhile, the number of flights increased to key destinations like Turkey, India, Thailand, Uzbekistan, Georgia and the Gulf, as well as an expanded number of flights to China.

Revenue passenger kilometers or RPK, a key industry metric that measures how far paying passengers travel, was up 11.3% at 14.6bn, while available seat kilometers (ASK) rose 11.1% to 17.7bn.

"We are pleased to report our first set of results as a public company following our successful IPO across three stock exchanges last month. Air Astana delivered another strong year of growth in 2023 with record passenger numbers and increased capacity," said chief executive Peter Foster.

Commenting on the recent flotations, Foster said the proceeds from the initial public offering will help the group further expand operations and increase carrying capacity, which should help drive "further growth" in 2024.

Looking ahead, Air Astana said: "The group's extended home market of Central Asia and Caucasus remains a leading growth opportunity, characterised by low penetration for air travel and the Group's strong market position. In addition, nearby mega markets including China and India as well as lifestyle destinations in Asia, Gulf, Turkey and Europe present further growth opportunities for the group."