Kazakh airline Air Astana, which also includes the low-cost carrier FlyArystan, recorded significant revenue growth in the second quarter of 2026, but slipped into the red in the first half of 2026 due to massive increases in spending.
Despite largely unchanged flight capacity and a slight decline in passenger numbers, the group's total revenue increased by 18,3 percent to US$433,0 million in the second quarter of 2026. The main drivers of this growth were higher ticket prices and increased revenue per available seat kilometer. At the same time, significantly fluctuating kerosene prices at international stations, currency effects on the local currency, the Tenge, and ongoing expenses related to engine inspections led to a substantial increase in unit costs. For the first six months of 2026, the group reported a net loss of US$21,2 million, compared to a profit of US$10,7 million in the same period of the previous year.
Divergence of revenues and operating expenses in the second quarter
The financial gap between revenues and expenses widened noticeably in the second quarter of 2026. While revenue per available seat kilometer increased by 18,5 percent, total costs per unit climbed by 24,3 percent during the same period. Consequently, earnings before interest, taxes, depreciation, and amortization (EBITDAR) fell by 3,7 percent to US$93,6 million in the second quarter. The number of passengers carried declined slightly by 1,7 percent quarter-on-quarter to 2,45 million, illustrating that the revenue increase was primarily generated through price levels rather than volume growth.
Management attributes a significant portion of the increase in expenses to the price fluctuations in aviation fuel at its foreign bases. Average kerosene costs at Air Astana's international stations have nearly doubled compared to the same period last year. The company attributes these fluctuations to geopolitical turmoil and altered supply chains resulting from the conflicts in the Middle East. Additional financial burdens arose from the strengthening of the Kazakhstani tenge, increased personnel costs, and higher expenses for aircraft ownership and maintenance.
Impact of Pratt & Whitney engine problems on fleet deployment
In addition to fuel costs, the industry-wide engine problems of manufacturer Pratt & Whitney represented a persistent burden. A large portion of Air Astana and FlyArystan's Airbus A320 family fleet is equipped with these engines, which have required accelerated inspections and extended maintenance periods worldwide since 2023. These unplanned ground times have led to capacity bottlenecks and alternative charter flights in recent fiscal years.
According to company management, a gradual easing of this problem is becoming apparent. Compared to the same period last year, the number of grounded aircraft in the second quarter of 2026 was approximately 60 percent lower. For the 2027 summer season, management anticipates that no aircraft will be grounded due to these specific inspections. CEO Ibrahim Canliel explained that visibility regarding engine failures has increased significantly and that the second quarter of 2026 represents a turning point in the operational impact on fleet capacity.
Expansion of the international route network and focus on Asia
Despite financial pressures, Air Astana continued to expand its international route network in the first half of 2026. A key focus of its network development was the Chinese market, where seat capacity increased by 81 percent in the second quarter compared to the previous year. Air Astana launched a new route between the capital, Astana, and Guangzhou. Its subsidiary, FlyArystan, introduced flights from Aktau to Urumqi and from Almaty to Xi'an and Chongqing. Together with a previously launched service to Shanghai, the group plans to serve a total of nine cities in China by the end of 2026.
Furthermore, the airline doubled its frequencies on the Almaty-Delhi route to two daily connections and increased flight frequencies to London, Frankfurt, and Istanbul. The flight schedule was complemented by seasonal destinations such as Larnaca in Cyprus and Dalaman in Turkey, as well as the resumption of summer routes to Batumi in Georgia and Da Nang in Vietnam. This network expansion led to an 82 percent increase in transit traffic via the Almaty and Astana hubs in the second quarter of 2026, underscoring Central Asia's importance as a transit region for East-West traffic.
Looking ahead, the group is preparing for continued cost pressures. Management announced that it will adjust capacity on individual routes as needed to protect profit margins from further erosion. In the medium to long term, Air Astana remains committed to its expansion plans. By 2030, the combined fleet of Air Astana and FlyArystan is expected to grow to a total of 86 aircraft. The company also aims to return its EBITDAR margin to the mid-to-high range of over 20 percent in the medium term.