Q2 and Half Year 2026 Results

Air Astana JSC

05 August 2026

 

5 August 2026

Results for the second quarter and six months ended 30 June 2026

International network expansion driving attractive growth, engine outlook at an inflection point - addressing cost headwinds.

Almaty, Kazakhstan - Air Astana JSC (the "Company" and, together with its subsidiary FlyArystan, the "Group"), the leading airline group in Central Asia and the Caucasus regions by revenue and fleet size, announces its results for the second quarter and six months ended 30 June 2026.

Ibrahim Canliel, CEO of Air Astana, commented:

"The Group delivered strong top line growth in the second quarter of 2026, with revenue and other income accelerating by 18.3%. This was achieved with broadly unchanged capacity through disciplined pricing and Air Astana's dynamic allocation of capacity towards international markets resulting in an 18.5% RASK increase.

Unit cost growth continued to exceed unit revenue growth in Q2, as higher fuel prices at international stations persisted while the tenge remained strong and costs associated with the ongoing Pratt & Whitney engine issues had to be spread across a broadly unchanged capacity base. However, our visibility on P&W has improved significantly - we currently have around 60% fewer grounding than the equivalent period last year and anticipate zero groundings in summer 2027.

The operating environment in the Gulf remained volatile throughout the second quarter and continued to require close monitoring and rapid adjustments to schedules and capacity. The flexibility of our network enabled us to redeploy aircraft to satisfy strong customer demand in alternative markets and highlights the countercyclical nature of our operations within this 'New Normal'.

While responding to these operational challenges, we continued to execute our long-term network strategy by rebalancing capacity towards high growth international markets across both of our brands. China represents the largest area of our international expansion - following the launch of Shanghai in Q1, we added services to Guangzhou, Urumqi and Xi'an, almost doubling summer capacity to China year-on-year to up to 51 weekly flights which will serve nine destinations by the end of the year. We expanded connectivity to India, Europe, South East Asia, and Central Asia and the Caucasus, broadening travel options and strengthening transit flows through Almaty and Astana. Together, these developments broaden the Group's international reach and support Kazakhstan's growing role as a regional aviation hub."

Q2 Summary

Revenue growth continued, despite broadly stable capacity and traffic.

·      Total revenue and other income increased 18.3% to USD 433.0 million (Q2 2025: USD 365.8 million).

·      ASK decreased 0.2% to 5.56 billion (Q2 2025: 5.57 billion). 

·      RPK decreased 0.4% to 4.54 billion (Q2 2025: 4.56 billion).

·      RASK-CASK differential positive for the quarter:

o  RASK increased 18.5% to USD 7.78¢ (Q2 2025: 6.57¢).

o  CASK increased 24.3% to USD 7.29¢ (Q2 2025: 5.87¢).

·      EBITDAR decreased 3.7% to USD 93.6 million (Q2 2025: USD 97.1 million). EBITDAR margin 4.9pp lower to 21.6% (Q2 2025: 26.5%).

·      PAT decreased to USD -0.1 million (Q2 2025: USD 18.0 million).

·      Group passengers carried fell 1.7% to 2.45 million (Q2 2025: 2.49 million) with average load factor stable at 81.6% (Q2 2025: 81.9%).

H1 Summary

Strong revenue and passenger growth in H1, with profitability impacted by higher costs.

·      Total revenue and other income increased 16.1% to USD 763.9 million (H1 2025: USD 658.2 million).

·      ASK up 0.2% to 10.3 billion (H1 2025: 10.3 billion). 

·      RPK increased 1.1% to 8.5 billion (H1 2025: 8.4 billion).

·      CASK growth outpaced RASK growth:

o  RASK increased 15.8% to USD 7.43¢ (H1 2025: 6.41¢)

o  CASK increased 22.2% to USD 7.30¢ (H1 2025: 5.97¢).

·      EBITDAR decreased 9.7% to USD 141.7 million (Н1 2025: USD 157.0 million). EBITDAR margin 5.3pp lower to 18.6% (H1 2025: 23.9%).

·      PAT decreased to USD -21.2 million (H1 2025: USD 10.7 million).

·      Group passengers carried remained broadly stable at 4.4 million (H1 2025: 4.5 million) while the average load factor improved to 82.4% (H1 2025: 81.7%).

Outlook

Our growth environment remains strong and actions to adjust our network in light of ongoing conflicts continue to deliver attractive growth dynamics which we expect to support the structural tailwinds in the region. However, in the near-term we expect inflationary cost pressures to persist offsetting some of the revenue growth momentum. Our medium-term strategy, anchored on international expansion continues apace and supports confidence in our medium-term guidance:

·      Realign capacity to protect margins and mitigate inflationary cost pressures, while retaining a load factor in the mid-to-low 80s.

·      Expand total fleet to 86 aircraft by the end of 2030.

·      Increase EBITDAR margin to mid-to-high 20s over the medium term with liquidity ratio above 25% and leverage below 3.0x Net Debt/EBITDAR.

Financial Summary

Financial and Operational Review	Q2-26	Q2-25	Diff YoY	H1-26	H1-25	Diff YoY
Passengers (millions)	2.45	2.49	-1.7%	4.39	4.50	-2.4%
Aircraft (end of period - fleet)	63	61	3.3%	63	61	3.3%
Load factor (%)	81.6	81.9	-0.2pp	82.4	81.7	0.7pp
Revenue and other income (million USD)	433.0	365.8	18.3%	763.9	658.2	16.1%
EBITDAR (million USD)	93.6	97.1	-3.7%	141.7	157.0	-9.7%
EBITDAR margin (%)	21.6%	26.5%	-4.9pp	18.6%	23.9%	-5.3pp
PAT (million USD)	-0.1	18.1	-100.5%	-21.2	10.7	-298.5%
ASK (billion)	5.6	5.6	-0.2%	10.3	10.3	0.2%
RPK (billion)	4.5	4.6	-0.4%	8.5	8.4	1.1%
RASK (US cents)	7.78	6.57	18.5%	7.43	6.41	15.8%
CASK (US cents)	7.29	5.87	24.3%	7.30	5.97	22.2%
Cash and bank balances (million USD)	481.5	531.6	-9.4%	481.5	531.6	-9.4%
Net Debt/EBITDAR	2.1	1.3	0.7	2.1	1.3	0.7
Cash/sales (%)	30.9%	38.5%	-7.6pp	30.9%	38.5%	-7.6pp

Financial update

The Group delivered strong revenue growth in Q2 2026, with revenue and other income increasing by 18.3% to USD 433.0 million (Q2 2025: USD 365.8 million), despite Group capacity remaining broadly unchanged, with ASK decreasing by 0.2% to 5.6 billion. Revenue growth was supported by Air Astana's planned reallocation of capacity towards higher-margin international routes. However, continued cost pressures resulted in EBITDAR declining by 3.7% to USD 93.6 million (Q2 2025: USD 97.1 million), with the EBITDAR margin decreasing by 4.9 pp to 21.6% (Q2 2025: 26.5%).

The traffic trend seen in Q1 2026 continued in Q2 with international capacity (measured by RPK) rising 5.5% while domestic decreased by 7.2%. This trend is in line with our planned shift to higher margin international routes and supports our growth aspirations.

RASK increased by 18.5% to 7.78 US cents in Q2 2026 (Q2 2025: 6.57 US cents) reinforcing the unit revenue recovery seen over the prior two quarters. The increase was primarily driven by planned reallocation of capacity, supported by growth in international traffic across both brands. FlyArystan notably contributed to the international growth with 21.4% standalone RASK growth. The increase in unit revenue was, however, insufficient to offset faster growth in unit costs. CASK increased by 24.3% to 7.29 US cents in Q2 2026 (Q2 2025: 5.87 US cents). Cost growth reflected continued pressure from fuel, including a 98% year-on-year increase in the average fuel price at international stations in Q2, as well as the impact of the 7% strengthening of the Kazakh tenge against the US dollar and higher employee, aircraft ownership and engineering and maintenance costs, including labour costs associated with the Pratt & Whitney engine issue. Consequently, CASK growth exceeded RASK growth by 5.8 percentage points in Q2, narrowing the RASK-CASK spread to 0.49 US cents in Q2.

The Group cost base is designed to support a recovery in production and ongoing operational resilience. Whilst actual capacity remained constrained in the second quarter, higher labour, ownership, maintenance and traffic-related costs were spread across a stable ASK base, translating to increased unit costs and margin pressure.

Costs associated with Pratt & Whitney engine issues have been the fundamental drag on profitability. Discussions with the manufacturer to improve both production and costs have been productive and we expect significant near-term improvements in both. Crucially, we see a higher level of capacity available to us in the summer 2026 with 60% fewer groundings than previously expected. We also now anticipate zero groundings for the FY 2027.

In the second quarter, we have also successfully concluded negotiations with both Almaty and Astana airports which has given us greater visibility around the traffic related costs at our hubs in the medium-term.

As at 30 June 2026, the Group maintained a strong liquidity position with cash and cash equivalents of USD 481.5 million (Q2 2025: USD 531.6 million) with a cash-to-sales ratio of 30.9% (Q2 2025: 38.5%) before available facilities. The leverage ratio stood at 2.1x Group Net Debt/EBITDAR compared to 1.3x in Q2 2025. These metrics remain comfortably within medium-term guidance and have moved year-on-year driven by lower operating cash generation as well as continued investment in fleet. Despite the reduction in cash, the Group retains a robust liquidity position and balance sheet flexibility.

Operational Update

The Group's in-house MRO and training capabilities continue to support operational efficiency by providing greater control over maintenance and training activities and flexibility in responding to technical and operational requirements.

Planning for additional hangar facilities is progressing as the Group continues to develop its heavy maintenance capabilities. At the Group's Flight Training Centre in Astana, the second EASA-certified A320 Full-Flight Simulator is now fully operational.

During the first half of the year, Air Astana continued to accelerate its digital transformation agenda with a strong focus on customer experience, operational excellence and technology modernisation. A key milestone was the successful launch of our AI-powered customer communication platform, with ongoing investments to further enhance its capabilities. We also delivered new digital solutions across airport operations and employee services, while continuing to expand our adoption of cloud technologies to improve agility, collaboration and scalability.

Air Astana continued to develop its direct digital channels in Q2 2026, adding new functionality across its website and mobile app to improve personalisation and booking convenience. The airline launched MyTrips, providing Nomad Club members with a single view of upcoming travel by automatically saving direct bookings and allowing other itineraries to be added manually. The Company also sent its first campaign powered by the new Customer Database Platform (CDP), a foundational step toward more advanced personalization of customer communications and the digital experience going forward. These enhancements supported continued growth in the direct digital channel, with mobile app monthly active users reaching a record 149,000 in June, up 18% year-on-year.

Finally, Air Astana uplifted close to 80% of its fuel in Kazakhstan where it sources primarily from the refineries directly and manages all the logistics including transportation. Both pricing and supply through this channel have been very stable despite the conflict in the Gulf. Our international uplift (c.20%) was 25% hedged in Q2. We have not experienced any supply issues locally or internationally during the quarter.

Traffic and network expansion

During Q2 2026, the Group's dynamic capacity allocation model allowed it to expand and rebalance its network towards international markets, supported by new routes and additional frequencies across both brands. The summer 2026 schedule comprises approximately 330 weekly international services (including 102 services to Central Asia and the Caucasus) and more than 500 weekly domestic services across Kazakhstan. This network expansion and its regularity is a key driver of increased connectivity and transit traffic potential.

China was the principal area of international expansion, with the Group operating up to 51 weekly services to seven destinations (nine by year end) and capacity increasing by 81% year-on-year in Q2. Air Astana launched services between Astana and Guangzhou, while FlyArystan added Aktau-Urumqi, Almaty-Xi'an and Almaty-Chongqing. These additions followed the launch of Air Astana's Almaty-Shanghai service in Q1, alongside increased frequencies to existing destinations in China. Air Astana also increased Almaty-Delhi services to twice daily and maintained three weekly services to Mumbai driving a 91% increase in ASK to India in Q2.

Across Europe and Turkey, Air Astana increased Almaty-London to four weekly services and operated 11 weekly flights to Frankfurt from Almaty, Astana and Uralsk. Services to Istanbul increased to 25 per week from Almaty, Astana and Atyrau, including twice-daily flights from Almaty. The summer programme also included new services to Larnaca and Dalaman and the resumption of seasonal routes to Podgorica, Batumi, Bodrum, Da Nang and Nha Trang.

FlyArystan further expanded its international network during Q2 with new services from Almaty and Astana to Gazipaşa-Alanya and from Astana and Aktau to Batumi. Air Astana's regional connectivity was also strengthened through increased frequencies in Central Asia and the Caucasus, including three daily Almaty-Tashkent services and twice-daily Almaty-Tbilisi services.

Continued development of the two complementary networks broadens point-to-point travel options while supporting transit connectivity through the Group's Almaty and Astana hubs. We saw an 82% increase in international connecting traffic in Q2, demonstrating the countercyclical nature of the airline in the 'New Normal' operating environment.

Fleet

The Group's fleet is expected to grow to 86 aircraft by 2030 (54 Air Astana brand, 32 FlyArystan brand). The fleet will comprise 83 Airbus A320 family and three Boeing 787-9. The first Boeing 787-9 is expected to be delivered later in 2026 and they will ultimately replace the existing Boeing 767 fleet.

Beyond 2030 we have a flexible orderbook comprising up to 50 additional Airbus A320 family aircraft and up to 15 additional Boeing 787-9 aircraft scheduled for delivery between 2031 and 2035. Our fleet plan is designed to support our long-term growth plan and provide the best possible flight experience for our discerning customer base.

Ongoing mitigation of Pratt & Whitney challenges and additional UERs

The majority of the Air Astana's fleet comprises Airbus A320 family aircraft powered by Pratt & Whitney PW1100G engines, which remain affected by contaminated powdered metal and LLP durability issues as announced in July 2023. This issue continues to require affected engines to be removed for accelerated inspections and shop visits, leading to increased aircraft groundings across the industry. The Group continues to manage the operational impact through its established mitigation plan to maximise fleet availability during peak operating periods.

In H1 2026, the Group secured 11 additional engines to support fleet availability and mitigate the operational impact of the Pratt & Whitney engine issue. More importantly, we are pleased to report that this year we have seen significant improvements in inductions, as well as faster turnaround times and the enhanced lifetime of new HPT blades. Following 11 inductions for the FY2025, we anticipate over three times that number in 2026 and have additional commitments for 2027 as well as requests for more. With this improvement, we are seeing the number of groundings around 60% lower than in the equivalent period last year and expect to have zero Aircraft-on-Ground (AOG) during the 2027 summer peak.

Q2 marks not only a step-change in our visibility on this protracted issue but an inflection point in the impact it has on our capacity. Consequently, we are confident that the unit cost impact will improve in the near term.

Excellence

Air Astana continues to invest in its inflight product and customer experience, supporting its premium positioning and long-term growth strategy. OTP for the quarter was +5.9pp to 87.6%. The trend has been maintained in July with a monthly OTP +9.2pp to 85.5%. Likewise, the NPS in June was up by 3pp to 53 and is trending higher in July.

This quarter, Air Astana completed a Critical Design Review with satellite connectivity provider SES, advancing the planned installation of Wi-Fi hardware across its A321LR fleet to enhance our passengers' business and leisure inflight experience.

Following its introduction for Nauryz, Air Astana extended its collaboration with Sandyq beyond the seasonal period reinforcing Air Astana's role as a global ambassador for Kazakhstan by promoting national identity and cultural heritage through onboard catering and cabin experience.

In recognition of the focus on customer experience and the hard work of our 7000 colleagues, Air Astana was awarded APEX Five-Star Major Airline status for the sixth consecutive year and was also named Best Overall Airline in Central and Southern Asia by APEX in 2025. The Group's continued focus on service excellence was recognised at the Skytrax World Airline Awards 2025. Air Astana was named "Best Airline in Central Asia & CIS" for the fourteenth consecutive year and received the "Best Staff Service in Central Asia & CIS" award for the ninth time. FlyArystan was also recognised as "Best Low-Cost Airline in Central Asia & CIS" for the third consecutive year.

ESG

At Air Astana we understand the importance of driving sustainability rather than reacting to its challenges. We continue to promote regional market developments in Sustainable Aviation Fuel (SAF) and evaluate both potential supply opportunities and strategic partnerships as the domestic SAF market evolves.

In lieu of that, we have recently signed a SAF MoU with an international fuel supplier in order to secure a stable, long-term supply of sustainable fuel and support our environmental aspirations. The SAF uplift is due to commence in Europe, and expand to cover additional Air Astana routes in Asia in due course.

Our modern fleet and anticipated aircraft deliveries also ensure that we continue to fly the most efficient engines. Combined with AI-driven analytics to precisely optimise fuel consumption we seek to minimise the environmental impact of travel for our passengers. Air Astana has become one of the first companies in Kazakhstan to receive the DHL GoGreen Plus Certificate, recognising its support for reducing our Scope 3 emissions.

Conference Call

Management will host a presentation webcast and live Q&A conference call today, 5 August 2026 at 10.00 UKT (14.00 KZT). The Q2/H1 results presentation and recording of the webcast will be made available on the Company's website at https://ir.airastana.com.

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

In English language: Air Astana Q2 and H1 2026 Webcast

In Kazakh language: Air Astana 2026 ж. екінші тоқсан мен алты айдың нәтижелері

In Russian language: Air Astana Результатов за второй квартал и первое полугодие 2026 года

The IFRS financial statements for H1 2026 are available on the Company's website in the "Financial Statements" section: https://ir.airastana.com

For more information, please contact:

Air Astana Group
Investor Relations Simon Wray (Head of Investor Relations)	[e-mail]
Corporate Communications	[e-mail]
FTI Consulting (Financial media)	[e-mail]

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 63 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 Gulf, India and Europe. Air Astana has been recognised by SkyTrax as the Best Airline in Central Asia & CIS fourteen years running and received the Best Airline Staff Service in Central Asia & CIS award nine times in a row. FlyArystan has been recognised as the Best Low-Cost Carrier (LCC) in Central Asia & CIS at the SkyTrax awards three times. 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).

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