Air Astana, the flag carrier responsible for the first major float in London this year, has reported a fall in annual profit as it flagged “industry-wide” cost headwinds such as the rising price of jet fuel.
Operating profit decreased 8.6 per cent to $136m (£106.7m), down from a prior year figure of $148.7m. Profit after tax for the year came in at $68.7m, also down 12.4 per cent on 2022.
The Kazakh airline reported the drop in profit despite carrying a record 8.1m passengers over the year, up 10.1 per cent and helping revenue rise 13 per cent to $1.2bn.
The carrier, which is half-owned by BAE Systems, bagged a £665m valuation in a closely-watched listing that was seen as a key indicator of the state of London markets.
Chief executive Peter Foster, said: “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.
“The group is scaling its operations across both the full-service and low-cost carrier markets to gain market share and further develop our leadership position in our extended home market of Central Asia and the Caucasus, which is characterised by low air travel penetration.”
However, the firm, which holds a dual listing in London and Kazakhstan, has been impacted by significant cost headwinds hampering the aviation sector globally.
Oil prices have risen in response to conflicts in the Middle East and Ukraine, while airlines are coping with delays in aircraft deliveries from major planemakers Airbus and Boeing.
In its statement, Air Astana flagged rising jet fuel prices alongside “meteorological, economic and political factors” it can “neither control nor accurately predict.”
Fuel costs increased by 20.4 per cent to $47.3m in 2023. Supply chain issues have also impacted the firm with its GTF engines, produced by Pratt & Whitney.