Air Astana reported a 12.4% increase in revenue to $1.3 billion for 2024, leading to a nearly 3% rise in shares. The airline announced a special dividend following robust financial performance and fleet expansion plans, while also highlighting new routes and partnerships as part of its growth strategy.
Air Astana, the leading airline in Central Asia and the Caucasus, recently experienced a 12.4% increase in revenue, reaching $1.3 billion for the year ending December 31, 2024. Following this announcement, shares of the airline rose nearly 3% to $6.22. These figures mark the company’s first earnings release since its impressive $356 million IPO in February 2024.
In recognition of the strong financial performance, Air Astana proposed a special dividend, with a total payout of $0.425 per GDR (global depositary receipt). This decision reflects the robust results for 2024 and a solid balance sheet, showcasing the airline’s financial health and commitment to returning value to shareholders.
The airline also addressed its fleet management strategy in relation to a settlement with Pratt & Whitney concerning the PW1100G engines used in its A320-200 neo aircraft. “We continue to proactively manage the fleet and add capacity in line with our growth strategy,” stated the company. As part of its mitigation plan, Air Astana implemented a rest cycle for engines in low seasons while securing additional aircraft and spare engine capacity, growing the fleet to 60, with expectations to reach 63 by year’s end.
Chief Executive Officer Peter Foster highlighted significant operational achievements, including the addition of nearly one million passengers in 2024. Foster noted, “The group added nearly a million passengers in 2024 with an increasing load factor, driven by growing demand for air travel across Kazakhstan and nearby megamarkets.” Furthermore, he announced plans for eight new routes in 2025, including direct flights to Frankfurt, Guangzhou, Mumbai, Da Nang, and Nha Trang.
Moreover, Peter Foster disclosed that Air Astana has signed a Memorandum of Understanding (MoU) with China Southern Airlines, facilitating expedited expansion into the significant nearby mega-market, underscoring the airline’s proactive growth strategy and commitment to enhancing connectivity in the region.
In conclusion, Air Astana demonstrated significant financial growth with a notable increase in revenue and plans for shareholder dividends. The airline’s proactive fleet management strategy and expansion initiatives position it favorably within the competitive aviation market. With new routes and strategic partnerships in the pipeline, Air Astana is well-equipped to meet the growing demand for air travel in Central Asia and beyond.
Original Source: www.sharesmagazine.co.uk
