REG - Air Astana JSC - Q4 and Full Year 2024 Results

Air Astana AOAnnouncement

14/03/2025 07:15

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RNS Number : 6429A  Air Astana JSC  14 March 2025

14 March 2025

Results for the fourth quarter and twelve months ended 31 December 2024

 

Fulfilling our promises with strong growth and proactive cost management

Successful $356 million IPO across 3 exchanges

Annual and special dividend proposed, ahead of guidance and enhanced dividend
policy announced

Well positioned for further growth in 2025

 

Almaty, Kazakhstan - Air Astana JSC (the "Company" and, together with its
subsidiary FlyArystan, the "Group"), the largest airline group in Central Asia
and the Caucasus regions by revenue and fleet size, announces its results for
the fourth quarter and twelve months ended 31 December 2024.

 

Q4 Highlights

Improvement across all key metrics with RASK growth successfully offsetting
CASK

·      Total revenue and other income excluding non-recurring items(1)
increased 14.3% to USD 312.1 million (Q4 2023: USD 273.0 million).

·      Adjusted EBITDAR excluding non-recurring items(1) grew faster
than capacity, increasing 39.6% to USD 71.2 million (Q4 2023: USD 51.0
million). Adjusted EBITDAR margin excluding non-recurring items(1) improved to
22.8% (Q4 2023: 18.7%).

·      ASK up 5.8% to 4.7 billion (Q4 2023: 4.5 billion).

·      RPK increased 9.2% to 3.9 billion (Q4 2023: 3.5 billion).

·      RASK growth ahead of CASK due to proactive capacity management,
continuing the positive quarter-on-quarter trend, to successfully offset cost
inflation and protect yield.

o  RASK excluding non-recurring items(1) up 6.6% to USD 6.53¢ (Q4 2023:
6.12¢).

o  CASK excluding non-recurring items(1) rose 2.6% to USD 6.12¢ (Q4 2023:
5.96¢).

·      Group passengers carried up 6.9% to 2.2 million (Q4 2023: 2.0
million), with a 2.6pp improvement in average load factor to 81.7% (Q4 2023:
79.1%).

 

FY24 Highlights

Proactive capacity management largely mitigated industry-wide cost pressures
and delivered strong growth across both operating brands

·      Total revenue and other income excluding non-recurring items(1)
increased 12.4% to USD 1,308 million (FY 2023: USD 1,164 million).

·      Adjusted EBITDAR excluding non-recurring items(1) grew 16.1% to
USD 338.6 million (FY 2023: USD 291.6 million) with adjusted EBITDAR margin
excluding non-recurring items(1) of 25.9% (FY 2023: USD 25.1%).

·      ASK up 9.2% to 19.3 billion (FY 2023: 17.7 billion).

·      RPK increased 10.1% to 16.1 billion (FY 2023: 14.6 billion).

·      Progressive improvement in yield throughout the year, with
capacity allocated to higher margin routes, largely mitigating the impact of
industry-wide cost inflation with higher unit revenues. The RASK-CASK index
differential improved progressively over the quarters and turned positive in
Q4, resulting in an almost aligned RASK-CASK growth for the year.

o  RASK excluding non-recurring items(1) up 2.6% to USD 6.75¢ (FY 2023:
6.58¢)

o  CASK excluding non-recurring items(1) rose 2.7% to USD 6.02¢ (FY 2023:
5.86¢).

·      Group passenger growth of 11.2% to 9.0 million (FY 2023: 8.1
million), with a 0.7pp improvement in average load factor to 83.5% (FY 2023:
82.8%).

 

Ordinary and special dividend

·      The Board of Directors has proposed to the Annual General Meeting
of Shareholders (AGM) an ordinary dividend of KZT 17.7 per one common share
(KZT 70.9 per GDR - of four shares), a total dividend of KZT 6.3 billion,
earlier than the medium-term guidance set out at IPO.

·      Additionally, in light of the Group's robust financial results for
2024 and strong balance sheet, the Board of Directors has recommended a
special dividend of KZT 36.0 per one common share (KZT 143.9 per GDR), a total
dividend of KZT 12.8 billion.

·         The total proposed dividend (ordinary and special
dividend) amounts to KZT 53.7 per one common share and KZT 214.8 per GDR. This
is subject to AGM approval not later than 31 May 2025 and payable in mid-2025.

·         The Board of Directors has approved the new enhanced
Dividend Policy stipulating a dividend of 30% to 50% of annual consolidated
net income*, ahead of previous guidance of up to 20%.

*Subject to all conditions described in the dividend policy

 

Peter Foster, CEO of Air Astana Group, commented:

 

"We achieved strong growth in our first year as a public company, fulfilling
our promises set out at IPO despite the capacity and cost challenges impacting
the wider industry. The Group added nearly a million passengers in 2024 with
an increasing load factor, driven by growing demand for air travel across
Kazakhstan, our extended home market and nearby megamarkets. By allocating
capacity to higher margin routes in Asia and the Gulf, we improved RASK by
2.6% which largely offset the rise in unit costs. This resulted in a 12.4%
increase in revenue to USD 1.3 billion and 16.1% improvement in adjusted
EBITDAR to USD 338.6 million, ahead of ASK growth of 9.2%. The RASK-CASK index
differential improved progressively over the quarters and turned positive in
Q4, resulting in RASK growth almost fully offsetting CASK for the year and
exceeding our guidance.

 

We continue to proactively manage the fleet and add capacity in line with our
growth strategy. Under our Pratt & Whitney mitigation plan, we took early
action to rest engines in the low seasons, secure additional aircraft and
spare engine capacity. We added 8 (net) aircraft in 2024, ahead of guidance,
the fleet has subsequently expanded to 60 and is expected to reach 63 aircraft
by year end. The network continues to grow with 21 new routes added in 2024,
14 of which launched in Q4. In 2025 we have already announced another 8 new
routes in key growth markets, including direct flights from Almaty to
Frankfurt, Guangzhou, Mumbai and Da Nang and Nha Trang in Vietnam. The
installation of auxiliary fuel tanks on the Airbus A321LR has made new routes
possible by extending cost efficient narrow-body range on long-haul flights.

 

We are delighted to announce that we have signed an MoU with China Southern
Airlines, China's powerhouse airline, for a comprehensive set of codeshares
across China, Kazakhstan and, subject to third country bilateral agreement,
other countries in East Asia, Central Asia and Caucasus. I cannot sufficiently
emphasise that this key partnership, once the MoU has been translated into
concrete agreement, will accelerate our expansion into this neighbouring
megamarket.

 

In addition, the new international terminal at Almaty Airport has doubled
capacity at our main hub, resolving a key constraint on the Group's future
growth.

 

The Group's operational efficiency is underpinned by investment in our people
and facilities. In 2024, our Advanced Technical Centre performed the most
comprehensive 12 Year C-check on our Airbus fleet and construction plans are
progressing for new hangars in Almaty and Astana to further expand maintenance
capacity. We are constantly looking at ways to make operations even more
efficient and turn costs into profit centres. We have just received our second
full flight simulator which will be in service by the year end.

 

We are in the process of establishing our Ground Services subsidiary, Air
Astana Terminal Services, to increase efficiency and potentially generate
revenue serving other airlines at our principal hubs at Almaty and Astana.

 

Our financial performance and robust balance sheet give us the confidence to
recommend an ordinary dividend of KZT 6.3 billion (USD 13.0 million), sooner
than guided, and an additional, special dividend of KZT 12.8 billion (USD 25.2
million). This is testament to the efforts of all our employees across Air
Astana and FlyArystan, who last month became shareholders under the Employee
Share Ownership Plan, a fitting reward for their commitment over several
years.

 

Entering the new financial year, we are well positioned to deliver growth
across both our brands underpinned by strong demand and expanded capacity.
While cost inflation and supply chain disruption across the wider industry are
likely to remain for some time, we are among the best placed in the industry
due to our low unit costs, high operating margins and dynamic approach to
fleet management. As a result, we are confident in delivering our medium-term
guidance."
 

Maintaining medium-term guidance

 

The Group expects to deliver growth in 2025, in line with its medium-term
guidance. This is underpinned by continued passenger growth on existing routes
in nearby megamarkets including China, India and the Gulf. Furthermore, the
Group remains ideally positioned to benefit from increased air travel in its
underserved extended-home market, the world's fastest growing aviation region
according to IATA.

 

Management will continue to proactively manage the Group's yield and operate a
low-cost base, as successfully executed in 2024, to maintain balance between
RASK and CASK growth. Capacity will continue to be realigned to ensure highest
margin delivery and to mitigate inflationary cost pressures, while retaining a
load factor broadly consistent with 2024.

 

Despite the ongoing OEM and supply chain challenges, the Group expects to
expand the total fleet to 63 aircraft by the end of 2025 and extends guidance
to 84 aircraft by the end of 2029.

 

As a result, the Group remains on track to meet its medium-term expectation of
mid-to-high 20s EBITDAR margin with liquidity ratio above 25% and leverage
below 3.0x Net Debt/EBITDAR.

 

                                                                   FY-24  FY-23  Diff YoY  Q4-24  Q4-23      Diff YoY
 Passengers (millions)                                             9.0    8.1    11.2%     2.2    2.0        6.9%
 Aircraft (end of period - fleet)                                  57     49     16.3%     57     49         16.3%
 Load factor (%)                                                   83.5   82.8   0.7pp     81.7   79.1       2.6pp
 Revenue and other income excl. non-recurring items (million USD)  1,308  1,164  12.4%     312.1  273.0      14.3%
 Revenue and other income (statutory)                              1,309  1,175  11.5%     312.7  273.9      14.1%
 Adjusted EBITDAR excl. non-recurring items (million USD)          338.6  291.6  16.1%     71.2   51.0       39.6%
 Adjusted EBITDAR (statutory)                                      322.9  300.8  7.4%      69.7   51.0       36.5%
 Adjusted EBITDAR margin excl. non-recurring items (%)             25.9   25.1   0.8pp     22.8   18.7       4.1pp
 Adjusted EBITDAR margin (statutory)                               24.7   25.6   -0.9pp    22.3      18.6    3.7pp
 ASK (billion)                                                     19.3   17.7   9.2%      4.7    4.5        5.8%
 RPK (billion)                                                     16.1   14.6   10.1%     3.9    3.5        9.2%
 RASK excl. non-recurring items (US cents)                         6.75   6.58   2.6%      6.53   6.12       6.6%
 RASK (statutory)                                                  6.78   6.64   2.0%      6.63   6.14       7.9%
 CASK excl. non-recurring items (US cents)                         6.02   5.86   2.7%      6.12   5.96       2.6%
 CASK (statutory)                                                  6.10   5.87   3.9%      6.16   5.98       3.0%
 Cash and bank balances (million USD)                              488.7  274.0  78.4%     488.7  274.0      78.4%
 Net Debt/EBITDAR (%)                                              1.2    1.5    -0.3pp    1.2    1.5        -0.3pp
 Cash/sales (%)                                                    37.3   23.3   14.0pp    37.3   23.3       14.0pp

Notes:

(1)                   Non-recurring item (NRI):  Net IPO
related expenses of USD 0.9 million in Q4 2023/USD 1.5 million in Q4 2024; USD
1.8 million in FY 2023/USD 12.9 million in FY 2024. Revenue from the
extraordinary market event (EME) impacted by partial mobilisation in Russia of
USD 0.9 million in Q4 2023/ USD 11.0 million in FY 2023. RASK adjustment of
USD 4.2 million in Q4 2024 and FY 2024. Donations of USD 2.7 million in
connection with the flood situation in Kazakhstan in FY 2024.

 

 

Conference Call

 

Management will host a presentation webcast and live Q&A conference call
today, 14 March 2025 at 9.30 GMT (14.30 Astana time). The full-year results
presentation and recording of the webcast will be made available on the
Company's website at https://ir.airastana.com (https://ir.airastana.com) .

 

Participants are invited to join the call at the following links:

 

In English language: Air Astana FY 2024 Webcast
(https://mm.closir.com/slides?id=165396)

In Russian language: Air Astana FY 2024 Webcast
(https://mm.closir.com/slides?id=826269&locale=ru)

In Kazakh language: Air Astana FY 2024 Webcast
(https://mm.closir.com/slides?id=777884&locale=kz)

 

 

 

OPERATIONAL REVIEW

 

In 2024, the Group delivered on its strategy with significant growth and
record passenger numbers, while carefully managing yield and controlling
costs.

 

The Group carried 9 million passengers across both airline brands at an
improved load factor of 83.5% (2023: 82.8%). This is almost one million
passengers more than in 2023, demonstrating the strength of demand as the
Group increases capacity across its two brands.

 

New routes and network expansion

 

As of 31 December 2024, the Group's passenger network covered 107 routes (74
international and 33 domestic), 45 destinations in 22 countries. The Group
further expanded its network in 2024 with new routes and destinations to
high-demand regions across Asia, including India, China, Vietnam and the Gulf.

 

Furthermore, the installation of a third fuel tank on the Group's fleet of
A321LR, at its own technical facilities, has widened network capabilities and
brought new destinations within extended range of narrow-body aircraft. This
has enabled the launch of nonstop Almaty-London, Almaty-Guangzhou, Astana-Phu
Quoc and Astana-Phuket flights, as well as Almaty-Tokyo from 2026.

 

Air Astana continued to expand its global network through Enhanced Strategic
Partnerships. By the end of 2024, nine codeshare partnerships had been
established with interline partners delivering over 150 thousand passengers
(approximately 8% of Air Astana international traffic). In August, the airline
signed a new codeshare agreement with Japan Airlines, facilitating seamless
connectivity between Kazakhstan and Japan on the upcoming Almaty-Tokyo route
in 2026.

 

Air Astana has signed an MoU with China Southern Airlines for code-sharing and
the final agreement is expected to be signed in Q2-Q3 2025. The partnership
with this major airline in China provides an opportunity to accelerate
expansion in this megamarket across the border from Kazakhstan. The Group is
exploring further potential Enhanced Strategic Partnerships.

 

As of 1 April 2024, FlyArystan has operated under its own Air Operator
Certificate (AOC). This enables the brand, which previously operated under the
Air Astana AOC, to align operations more effectively with its LCC model and
pursue additional growth opportunities with its own IATA code (FS). FlyArystan
remains a wholly owned subsidiary of the Group.

 

The new International Terminal at Almaty Airport was inaugurated on 31 May
2024. This has tripled the terminal area, increasing annual capacity at the
airport from 8 to 14 million passengers per year. The new terminal resolves
the capacity bottleneck at the Group's main base and provides additional
capacity for further growth in the future.

 

Fleet development

 

The Group continues to expand its fleet to support its growth objectives. The
Air Astana brand took delivery of 5 aircraft in 2024, expanding its fleet to
34. FlyArystan also took delivery of 5 aircraft in 2024, expanding its fleet
to 23, which further increased to 25 in early 2025, exclusively made up of the
A320 family of aircraft. Additionally, 3 Embraer E2 have been redelivered to
date, ahead of schedule, bringing the total fleet to 57 at the end of 2024 and
60 currently.

 

Successful execution of the mitigation plan for Pratt & Whitney engine
issues

The industry continues to be adversely impacted by supply chain challenges
arising from OEMs, including Pratt & Whitney, and the impact of the
contaminated powdered metal problems of PW1100G engines. The Group recognised
the issue early and took proactive action ahead of the wider industry,
successfully implementing an engine resting programme during the low season,
performing 93 engine replacements in 2024, therefore ensuring high fleet
utilisation during peak season and reducing the impact on overall performance.

 

The Group has also added a further 4 A320ceo family aircraft, with an
additional A320ceo expected in Q1 2025. In addition, the Group has a total of
13 spare engines supporting its A320neo family fleet. The engine-off wing time
assumption for this issue remains 18 months. Although the Group is now being
delivered completely fault-free engines, the issue is expected to persist and
require proactive mitigating actions for the foreseeable future.

 

Operational efficiency

 

The Group maintains its Airbus 320 family fleet in-house and provides its own
training for its pilots and cabin crew. Management is constantly reviewing
initiatives and new technologies to deliver further operational and cost
efficiencies, including a strategic plan to bring more of the Group's
operations in-house, resulting in more efficient and higher quality
operations, while also turning traditional costs into profit centres by
servicing other airlines.

 

In 2024, the Group continued to invest in its Advanced Technical Centre (ATC),
an in-house facility for maintaining aircraft to the highest industry
standards. The Group performed seven C-checks in 2024 and expanded its
capability to the most comprehensive 12 Year C-checks on the Airbus fleet, the
first ever conducted in Kazakhstan. The ATC delivered significant operating
efficiencies for the Group in 2024 and is expected to deliver increased
savings going forward. In addition, the Engineering and Maintenance unit
provided line maintenance to 58 domestic and international airlines.

 

Plans are currently being developed for the construction of new hangars in
Almaty and Astana, expanding maintenance capacity across the Group's main two
hubs, further reducing costs and introducing the opportunity to provide scarce
and high-value heavy maintenance to external customers. The construction of
the expanded facilities is expected to commence in 2025-26.

 

As part of its commitment to high standards of pilot training and performance,
the Group is extending its Flight Training Centre (FTC) in Astana. The Group's
A320 Full-Flight Simulator - one of the first in Central Asia - is currently
at full utilisation. The second Full Flight Simulator was delivered in
February 2025 and is on track to be commissioned by the end of this year
increasing capacity, extending operational efficiency and potentially
generating revenue from external pilot training.

 

In line with the Group's strategy of fleet simplification, all Embraer pilots
have now been converted to Airbus in preparation for the final phase-out of
the Embraer fleet. The Group is in the final stages of becoming the first
airline in Central Asia and CIS to be awarded a Multi-Pilot-License (MPL),
which will further contribute to the efficiency of pilots across the Group.
Furthermore, the implementation of Pairing Optimiser is currently in progress
and expected to go live in April 2025, which could bring potential savings of
5-7%. All these actions will contribute to improving the efficiency of pilot
utilisation.

 

We continue to train our own people, pilots, crew and engineers. Since the
ab-initio pilot cadet programme started in 2008 we now have a record high 30
cadets currently in training. About half of the current pilot force are
graduates of the ab-initio programme and 80 have been promoted to captains.
The new cabin emergency evacuation training system and real firefighting
trainer simulators were also commissioned during the year.

 

The Group increased its de-icing capability with the construction of its
de-icing warehouse at Astana airport. The project was completed in December
2024 and is an important milestone given the challenging winter climate in the
Group's home market. In Almaty, the de-icing fluid mixing station was upgraded
with increased storage capacity and reduced refilling speed by 50%. In 2024,
four new de-icing trucks were delivered to Almaty and Astana, increasing the
total number operated by the Group to 14. The expansion of de-icing facilities
contributes to improved operational capabilities and efficiency.

 

The Group is in the process of establishing Ground Services subsidiary, Air
Astana Terminal Services to ensure a high-quality customer service and also
manage one of its key costs. At the same time, this move will enable the Group
to expand its operational capabilities, improve operational efficiency and
potentially create growth opportunities providing services to other airlines.

 

Service excellence

 

The Group remains committed to the highest levels of customer service. In
November 2024, Air Astana opened its dedicated Shanyraq business lounge in the
new terminal at Almaty International Airport. This offers a world-class
service to the airline's business class and frequent flying customers. It
follows the revamping of The Shanyraq business lounge at Astana Airport which
resumed welcoming customers in July.

 

The customer experience continues to be regularly reviewed, driven by the CXG
(Customer Experience Group) chaired by the CEO. Besides the in-flight and
ground experience improvements based on customer feedback, most notably, the
upgraded website was launched in 2024, providing a more intuitive experience
for customers. This will be followed by the launch of the new app in the first
half of 2025. The Nomad Club frequent flyer programme was revamped with a
spend-based accrual and integrated with the new website to offer a seamless
experience.

 

In 2024, Air Astana was named by Skytrax the Best Airline in Central Asia
& CIS for the twelfth consecutive time and received the Best Airline Staff
Service in Central Asia & CIS award for the eighth time. Air Astana also
received the APEX Award for Best Overall Airline Award in Central Asia,
following its recognition with an APEX Five Star Award in the "Major Airlines"
category earlier in 2024. FlyArystan won the Best Low-Cost Carrier in Central
Asia & CIS award for the second time and completed a Skytrax Audit in
November 2024, retaining its four-star LCC status. Furthermore, Air Astana
Group is now a certified ACCA (Association of Chartered Certified Accountants)
Approved Employer at Platinum level.

 

Sustainability

 

To set goals for reducing its GHG emissions, the Group has developed a
Low-Carbon Development Programme (LCDP) for 2023-2032. It is incorporated into
the Group's ESG Strategy and is consistent with Kazakhstan's aim to achieve
carbon neutrality by 2060. Currently, the Group is updating its LCDP to
reflect its reassessed commitment to achieve net-zero emissions by 2050 in
line with the long-term goal adopted by the International Civil Aviation
Organisation, accompanied by a sustainability roadmap with credible near-term
targets for the next five years.

 

The Group participated in a comprehensive research study, led by the EBRD and
supported by KazMunayGas and the Aviation Administration of Kazakhstan, to
assess the potential for SAF production in Kazakhstan.

 

Post period, the Group became the first airline in Central Asia and the CIS to
join IATA CO₂ Connect and will provide actual operational data to enhance
the accuracy of CO₂ emissions calculations. In 2025, the Group will be
participating in IATA's Integrated Sustainability Program - Sustainable
Procurement Pilot. By engaging in this programme, the airline aims to enhance
procurement practices, ensuring they support not only economic efficiency but
also environmental conservation and social responsibility. This step forward
is part of the Group's broader strategy to achieve net-zero emissions by 2050,
demonstrating our dedication to sustainability in every aspect of our
operations.

 

 

 

FINANCIAL REVIEW

 

The Group delivered a strong set of results in 2024, with revenue and EBITDAR
growth in line with market expectations. This was a result of proactive
actions taken early in the year to manage industry-wide cost and revenue
pressures as well as capacity constraints.

 

Total revenue and other income excluding non-recurring items(1) increased
12.4% to USD 1,308 million (2023: USD 1,164 million), underpinned by a 10.0%
increase in passenger revenue excluding non-recurring items(1) to USD 1,246
million. Adjusted EBITDAR excluding non-recurring items(1) grew 16.1% to USD
338.6 million (2023: USD 291.6 million), on the back of 9.2% ASK growth. The
Group's adjusted EBITDAR margin excluding non-recurring items(1,) remains one
of the highest in the industry at 25.9%, an improvement of 0.8pp on 2023.

 

Operating profit excluding non-recurring items(1) rose by 14.9% to USD 145.7
million (2023: USD 126.8 million), with net profit excluding non-recurring
items(1) up 6.0% to USD 65.2 million (2023: USD 61.5 million in 2023).

 

Total cash at the end of December 2024 was USD 488.7 million, an increase of
78.4% or USD 214.7 million on the prior year (December 2023: USD 274 million).
This includes the USD 120 million proceeds from the IPO.

 

Revenue

 

The Group's successful execution of its fleet expansion strategy resulted in a
9.2% increase in Group ASK during 2024 to 19.3 billion, with domestic ASK
growing by 12.9% and international by 6.4%.

 

The Group's dual-brand model provides flexibility in allocating resources to
higher RASK routes. This, combined with its unique geographical location,
allows the Group to continue to balance passenger growth with a relentless
focus on operational cost efficiency, growing largely in higher margin
international routes.

 

Group RASK excluding non-recurring items(1) improved progressively throughout
the year, growing by 6.6% in Q4 2024 and by 2.6% across 2024, driven by
proactive capacity management across both airline brands.

 

Costs

 

The Group is constantly reviewing initiatives and new technologies to deliver
operational cost efficiencies (referenced above in Operational Efficiency),
support margin growth and keep unit costs at a very competitive industry
level.

 

Total operating costs excluding non-recurring items(1) increased by 12.1% in
2024 to USD 1,163 million (2023: USD 1,037million). This was driven by
industry-wide cost inflation, higher airport rates, the Group's continued
investment into customer experience, operating staff remuneration and higher
aircraft depreciation expenses from the fleet expansion, as well as planned
lower utilisation during the off-peaks to maximise the margin during the peak.
This was partially offset by the lower than ASK growth of engineering and
maintenance costs.

 

However, the Group's highly effective cost management programme ensured only a
moderate increase in full year CASK excluding non-recurring items(1) of 2.7%,
which was broadly offset by the growth in RASK by 2.6%. The RASK-CASK index
differential improved progressively over the quarters from negative 1.9pp in
Q1 2024 to positive 4pp in Q4, resulting in a broadly neutral RASK-CASK
differential for the year, ahead of guidance.

 

Following the re-implementation of the Fuel Tankering programme earlier in
2024, the Company achieved additional savings of USD 4 million. Approximately
30% of the Group's fuel is sourced internationally, which the Company hedges
using call options. In addition, a Fuel Savings Program will be implemented
during the first half of 2025 to reduce fuel burn and emission levels.

 

Fuel hedging and currency

 

In line with the Group's policy to hedge fuel price risk, it is fully hedged
against the anticipated increase in international fuel prices during Q1, Q2
and Q3 of 2025. These options are between USD 75 and USD 85 per barrel and
carry no downside risk.

 

As the Group's international services are largely priced in USD, fares for
domestic travel have been adjusted upwards in Q1 2025 to account for the local
currency fluctuations at the end of 2024.

 

Balance sheet and leverage ratio

 

The Group maintains a robust balance sheet and liquidity position. As at 31
December 2024, the Group's cash position was USD 488.7 million, an increase of
78.4% (2023: USD 274.0 million), with a cash-to-sales ratio of 37.3% (2023:
23.3%) before available facilities.

 

Group Net Debt / Adjusted EBITDAR reduced from 1.5x in 2023 to 1.2x in 2024,
driven by organic cash generation and IPO proceeds.

 

During 2024 early full repayments were made for five Airbus aircraft under
finance lease. Two of these repayments were made at the end of the third
quarter and the remaining three was repaid in Q4 2024.

 

Buyback programme

 

On 30 April 2024, the Company commenced a buyback programme to purchase
ordinary shares and global depositary receipts in order to meet the Company's
obligations arising from its employee incentive programmes.

 

In the first part of the programme, which concluded on 31 December 2024, the
Company purchased in total 4,638,555 shares (3,263,423 shares and 343,783 GDRs
(representing 1,375,132 shares)) for a total consideration of USD 8.2 million.
First vesting of shares and GDRs to employees took place on 17 February 2025.

 

On 13 March 2025, the Board approved the next phase of the employee incentive
programme for a total amount of up to USD 5 million.

 

 

For more information, please contact:

 

 Air Astana Group
 Irina Martinez (Head of Investor Relations)                  investor.relations@airastana.com (mailto:investor.relations@airastana.com)
 Bella Tormysheva (Vice-President, Corporate Communications)  media@airastana.com (mailto:media@airastana.com)

 Vigo Consulting (IR and PR Adviser to Air Astana Group)      airastana@vigoconsulting.com (mailto:airastana@vigoconsulting.com)
 Tim McCall                                                   +44 20 7390 0230

 

 

About the Air Astana Group

 

Air Astana Group is the largest airline group in Central Asia and the Caucasus
regions by revenue and fleet size. The Group operates a fleet of 60 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.
Air Astana was recognised by SkyTrax as the Best Airline in Central Asia &
CIS twelve times and received the Best Airline Staff Service in Central Asia
& CIS award eight times in a row. FlyArystan was recognised as the Best
Low-Cost Carrier (LCC) in Central Asia & CIS at the SkyTrax awards twice.
Additionally, Air Astana was awarded a five-star rating in the major airline
category by the Airline Passenger Experience Association (APEX). The Group is
listed on the Kazakhstan Stock Exchange, Astana International Exchange and
London Stock Exchange (ticker symbol: AIRA).

FINANCIAL STATEMENTS PRESENTED BELOW CONTAIN STATUTORY NUMBERS AND SHOULD BE
READ IN CONJUNCTION WITH THE EXPLANATIONS PROVIDED BY THE GROUP IN THE ABOVE
EARNINGS RELEASE

 

Consolidated statement of profit or loss for the year ended 31 December 2024

 '000 USD                                         2024         2023
 Revenue and other income
 Passenger revenue                                1,246,044    1,143,596
 Cargo and mail revenue                           26,303       22,519
 Gain from sale and leaseback transaction         25,016       -
 Other income                                     11,785       8,399
 Total revenue and other income                   1,309,148    1,174,514
 Operating expenses
 Fuel and oil costs                               (305,183)    (279,172)
 Employee and crew costs                          (226,659)    (193,067)
 Depreciation and amortisation                    (189,171)    (162,011)
 Handling, landing fees and route charges         (120,485)    (105,727)
 Passenger service                                (118,677)    (101,136)
 Engineering and maintenance                      (117,874)    (108,180)
 Selling costs                                    (44,180)     (40,431)
 Insurance                                        (12,801)     (10,981)
 Consultancy, legal and professional services     (8,412)      (5,729)
 IT and communication costs                       (6,831)      (6,538)
 Aircraft lease costs                             (5,216)      (2,217)
 Property and office costs                        (4,675)      (3,865)
 Taxes                                            (4,361)      (3,920)
 Impairment loss on trade receivables             (74)         (124)
 Other operating costs                            (14,543)     (15,435)
 Total operating expenses                         (1,179,142)  (1,038,533)
 Operating profit                                 130,006      135,981
 Finance income                                   22,079       14,806
 Finance costs                                    (64,656)     (49,892)
 Foreign exchange loss, net                       (20,743)     (13,803)
 Profit before tax                                66,686       87,092
 Income tax expense                               (13,910)     (18,387)
 Profit for the year                              52,776       68,705
 Basic and diluted earnings per share (in USD)**  0.151        0.225

 

 

Consolidated statement of other comprehensive income for the year ended 31
December 2024

 '000 USD                                                                 2024     2023
 Profit for the year                                                      52,776   68,705
 Other comprehensive income to be reclassified into profit or loss in
 subsequent periods:
 Cash flow hedges - effective portion of changes in fair value            433      (1,025)
 Corporate income tax related to cash flow hedges - effective portion of  (87)     205
 changes in fair value
 Realised net loss from cash flow hedging instruments                     12,714   12,408
 Corporate income tax related to loss from hedging instruments            (2,543)  (2,482)
 Other comprehensive income for the year, net of income tax               10,517   9,106
 Total comprehensive income for the year                                  63,293   77,811

 

 

Consolidated statement of financial position as at 31 December 2024

 '000 USD                                    31 December  31 December

                                             2024         2023
 ASSETS
 Non-current assets
 Property, plant and equipment               1,063,284    853,320
 Intangible assets                           6,018        2,836
 Prepayments                                 19,591       18,451
 Guarantee deposits                          38,695       33,302
 Deferred tax assets                         48,603       37,040
 Trade and other receivables                 630          1,343
                                             1,176,821    946,292
 Current assets
 Inventories                                 66,129       67,548
 Prepayments                                 30,290       24,825
 Income tax prepaid                          12,999       13,259
 Trade and other receivables                 20,801       23,525
 Other taxes prepaid                         13,792       10,247
 Guarantee deposits                          3,239        1,979
 Cash and cash equivalents                   488,702      274,006
 Other financial assets                      302          763
                                             636,254      416,152
 Total assets                                1,813,075    1,362,444
 EQUITY AND LIABILITIES
 Equity
 Share capital                               138,112      17,000
 Functional currency transition reserve      (9,324)      (9,324)
 Other reserves                              3,009        -
 Treasury share                              (8,240)      -
 Reserve on hedging instruments, net of tax  (5,775)      (16,292)
 Retained earnings                           276,748      221,975
 Total equity                                394,530      213,359

 Non-current liabilities
 Loans                                       521          -
 Lease liabilities                           716,775      543,896
 Provision for aircraft maintenance          289,866      148,618
 Employee benefits                           818          623
                                             1,007,980    693,137
 Current liabilities
 Loans                                       56           412
 Lease liabilities                           171,886      174,997
 Deferred revenue                            89,801       84,368
 Provision for aircraft maintenance          25,269       105,170
 Trade and other payables                    123,553      91,001
                                             410,565      455,948
 Total liabilities                           1,418,545    1,149,085
 Total equity and liabilities                1,813,075    1,362,444
 Book value per ordinary share (in USD) *    1.104        12,383.706

 

Consolidated statement of cash flows for the year ended 31 December 2024

 '000 USD                                                                       2024      2023
 OPERATING ACTIVITIES:
 Profit before tax                                                              66,686    87,092
 Adjustments for:
 Depreciation and amortisation of property, plant and equipment and intangible  189,171   162,011
 assets
 Gain on disposal of property, plant and equipment and other assets and from    (25,733)  (3,499)
 sales and leaseback transaction
 Change in impairment allowance for trade receivables, prepayments, guarantee   (1,150)   (76)
 deposits and cash and cash equivalents
 Write-down of obsolete and slow-moving inventories                             353       (621)
 Change in vacation accrual                                                     1,176     (316)
 Accrual of provision for aircraft maintenance                                  95,299    85,830
 Change in customer loyalty program provision                                   4,068     2,774
 Foreign exchange loss, net                                                     20,743    13,803
 Finance income                                                                 (21,782)  (14,321)
 Finance costs                                                                  64,592    49,462
 Gain from early return of aircraft                                             (2,875)   -
 Equity-settled share-based payment                                             6,109     -
 Operating cash flow before movements in working capital                        396,657   382,139

 Change in trade and other receivables                                          (1,794)   (831)
 Change in prepaid expenses and prepayments                                     (10,201)  (5,625)
 Change in inventories                                                          1,638     (16,787)
 Change in trade and other payables and provision for aircraft maintenance      (17,838)  (17,993)
 Change in deferred revenue                                                     3,415     1,442
 Change in other financial instruments                                          893       (129)
 Cash generated from operations                                                 372,770   342,216

 Income tax paid                                                                (26,667)  (42,839)
 Interest received                                                              21,743    14,081
 Net cash generated from operating activities                                   367,846   313,458

 INVESTING ACTIVITIES:
 Purchase of property, plant and equipment                                      (97,948)  (41,777)
 Proceed from sale and leaseback transaction                                    90,500    -
 Proceeds from disposal of property, plant and equipment                        2,734     4,980
 Purchase of intangible assets                                                  (3,687)   (2,116)
 Guarantee deposits placed                                                      (12,723)  (9,979)
 Guarantee deposits withdrawn                                                   3,044     2,876
 Net cash used in investing activities                                          (18,080)  (46,016)

 

The full audited IFRS financial statements for 2024 are available in the
"Financial Statements" section (https://ir.airastana.com
(https://ir.airastana.com) ).

Glossary of Terms

 

EBITDAR: 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).

 

ASK: Available Seat Kilometres

 

CASK: Cost per Available Seat Kilometre

 

OEM: Original Equipment Manufacturer

 

RASK: Revenue per Available Seat Kilometres

 

RPK: Revenue Passenger Kilometres

 

YoY: Year-on-Year

 

The Group:  Air Astana Joint Stock Company together with its subsidiary
FlyArystan

 

Disclaimer

 

This document has been prepared by Air Astana Joint Stock Company (the
"Company") and relates to the Company and its subsidiary (together, the
"Group") and the following applies to the information in this document (the
"Information").

 

The Information does not purport to contain full, accurate or complete
information required to evaluate the Company or the Group and/or its results
of operations or financial position. The Information does not constitute a
recommendation regarding any securities of the Company or any other member of
the Group. By accepting to access the Information, you (i) agree to be bound
by the foregoing limitations; and (ii) have read, understood and agree to
comply with the contents of this disclaimer.

 

No representation, warranty or undertaking, express or implied, is made by the
Company, or any of the respective affiliates of the Company, or any of their
respective directors, officers, personally liable partners, employees, agents
and consultants or advisers ("Associates"), or any other person as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the Information or the opinions contained therein or any other
statement made or purported to be made in connection with the Company or the
Group, for any purpose whatsoever, including but not limited to any investment
considerations. No responsibility, obligation or liability whatsoever, whether
arising in tort, contract or otherwise, is or will be accepted by the Company,
or any of their respective Associates or any other person for any loss, cost
or damage howsoever arising from any use of the Information, or for
information or opinions or for any errors, omissions or misstatements
contained therein or otherwise arising in connection therewith. This document
is not intended to provide, and should not be relied upon for accounting,
legal or tax advice nor does it constitute a recommendation regarding any
transaction.

 

This Information includes certain financial measures not presented in
accordance with IFRS. The Group uses these non-IFRS measures as supplementary
information to its IFRS financial information. The non-IFRS measures are not
defined by, or presented in accordance with, IFRS. The non-IFRS measures are
not measurements of the Group's operating performance under IFRS and should
not be used instead of, or considered as alternatives to, any measures of
performance and/or liquidity under IFRS. In addition, the Information contains
certain financial information that is based on the Group's internal records
and management accounts which have not been and will not be subject to audit
or review. Any non-IFRS measures and other information may not be indicative
of the Group's historical operating results nor are such measures and
information meant to be predicative of future results. These measures and
information may not be comparable to those used by other companies under the
same or similar names. As such, undue reliance should not be placed on these
non-IFRS and other information.

 

Any market data related to industry forecasts included in the Information have
been obtained from internal surveys, estimates, reports and studies, where
appropriate, as well as external market research, publicly available
information and industry publications. Neither the Group nor any of its
Associates have independently verified the accuracy of any such market data
and industry forecasts and make no representations or warranties in relation
thereto. Such data and forecasts are included herein for information purposes
only. In addition, industry, market and competitive position data contained in
this Information may come from the Group's own internal research and estimates
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in which the Group operates. While the Group believes, acting in good faith,
that such research and estimates are reasonable and reliable, they, and their
underlying methodology and assumptions, have not been verified by any
independent source for accuracy or completeness and are subject to change. The
Group cannot guarantee that a third party using different methods to assemble,
analyse or compute market information and data would obtain or generate the
same results. Further, the Group's competitors may define the Group's and
their markets differently than the Group does. Accordingly, you should not
place reliance on any industry, market or competitive position data contained
in this Information.

 

The Information contains forward-looking statements. All statements other than
statements of historical fact included in the Information are forward-looking
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made as to, and no reliance should be placed on, the fairness, accuracy,
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therein

 

The Information has not been independently verified and will not be updated.
The Information, including but not limited to forward-looking statements,
applies only as of the date of this document and is not intended to give any
assurances as to future results. Other than as may be required by law, the
Group expressly disclaims any obligation or undertaking to disseminate any
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any revisions it may make to the Information that may result from any change
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on which these forward-looking statements are based, or other events or
circumstances arising after the date of this document.

 

 

 

 

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