Air Astana FY 2025: revenue up, margins squeezed by engine woes
Air Astana posted another year of growth despite a rough operating backdrop. Group revenue rose 11.4% to USD 1,453.9 million, while EBITDAR edged up 0.8% to USD 321.2 million. The sting is in profitability: the EBITDAR margin fell 2.3 percentage points to 22.1% and profit after tax slid to USD 13.6 million, hit by higher costs and aircraft groundings linked to Pratt & Whitney engine issues.
There was a notable bright spot in Q4. Pricing improved, with RASK (revenue per available seat kilometre) up 9.8% to 7.18¢ as capacity was tilted toward higher-margin international routes and fares were adjusted. However, costs rose faster, with CASK (cost per available seat kilometre) up 17.3% to 7.23¢, leaving the quarter in a small loss.
The key numbers investors care about
| Metric | FY 2025 | FY 2024 | YoY |
|---|---|---|---|
| Total revenue and other income | USD 1,453.9m | USD 1,304.9m | +11.4% |
| EBITDAR | USD 321.2m | USD 318.7m | +0.8% |
| EBITDAR margin | 22.1% | 24.4% | -2.3pp |
| Profit after tax | USD 13.6m | USD 49.4m | -USD 35.9m |
| ASK (capacity) | 22.0bn | 19.3bn | +14.0% |
| RPK (traffic) | 18.2bn | 16.1bn | +13.0% |
| RASK | 6.60¢ | 6.75¢ | -2.3% |
| CASK | 6.20¢ | 6.10¢ | +1.6% |
| Passengers carried | 9.7m | 9.0m | +7.9% |
| Cash and bank balances | USD 472.9m | USD 488.7m | -3.2% |
| Net Debt/EBITDAR | 1.80x | 1.24x | +0.56x |
Q4 2025 snapshot: pricing recovery, but costs outpaced
- Revenue and other income: USD 357.1 million, up 15.8%.
- EBITDAR: USD 59.1 million, down 9.7%; margin 16.5%.
- PAT: USD -17.7 million (Q4 2024: USD -2.4 million).
- ASK up 5.5%; RASK up 9.8% to 7.18¢; CASK up 17.3% to 7.23¢.
Pratt & Whitney engine issues: what happened and why it matters
The fleet is heavily weighted to Airbus A320 family aircraft using Pratt & Whitney PW1100G engines. Industry-wide Unscheduled Engine Removals (UERs) forced early engine swaps and grounded up to 13 aircraft at peak. Air Astana estimates UERs reduced 2025 EBITDAR by USD 42.3 million, mainly by limiting capacity growth and pushing up unit costs.
Mitigation has been proactive: 13 spare leased engines secured, five extra A320-family aircraft leased, and 208 engine replacements completed since January 2024 at the in-house MRO. In 2025 alone, there were 22 UERs beyond the powdered metal issue. The working assumption is 18 months average off-wing time. The Group has booked as many inductions for H1 2026 as it received in all of 2025, some as faster ‘pit stop’ visits, and has secured four more engines.
Reality check: Pratt & Whitney expects the backlog of unserviceable engines to persist through 2028. New aircraft deliveries are unaffected, which helps Air Astana’s growth plans relative to peers, but near-term CASK pressure remains the swing factor.
Capacity and network: pivot to higher-margin international flying
Capacity (ASK) rose 14.0% in 2025, led by international growth of 19.8% versus 6.9% on domestic routes. The Group carried 9.7 million passengers with a steady load factor of 82.7%. In Q4, international ASK grew 11.2% while domestic capacity dipped 1.4% as the airline prioritised yield.
Route expansion was lively: 25 new routes across China, India, South-East Asia, the Gulf and Europe. Weekly flights to China climbed from 16 to 24 across six destinations, with Shanghai starting in early 2026. India frequencies increased from 12 to 16 to Delhi and Mumbai. The team also showed agility amid Middle East unrest, suspending Dubai, Doha, Jeddah and Medina and redeploying capacity to South-East Asia, London, Frankfurt and Istanbul where demand spiked.
Two new codeshares – China Southern and Air India – broaden access to the key megamarkets of China and India. The first codeshared flight with Air India operated on 4 November 2025, with China Southern expected at the end of March.
Fleet and orders: building long-haul muscle
The fleet ended 2025 at 62 aircraft after eight A320-family deliveries and the redelivery of three Embraer E2s, leaving a simpler, more efficient mix of A320 family and Boeing 767s. Cabin configurations were optimised on selected A321LR and A321neo aircraft.
- Boeing 787-9: five firm, five options and five purchase rights signed in February 2026 for delivery 2032-2035, in addition to three 787-9s arriving in 2026-2027.
- Airbus narrowbodies: five A320neo and twenty A321neo firm for 2031-2034, plus options for a further twenty-five A320neo-family aircraft.
Translation: the Group is laying rails for sustained long-haul and regional growth, with a modern, fuel-efficient fleet profile.
Operational efficiency and digital gains
In-house Maintenance, Repair and Overhaul capacity is a genuine strategic asset. In 2025, the team performed 115 PW1100G engine replacements and completed 16 Airbus C-checks, including multiple heavy checks in parallel. New hangars in Almaty and Astana are slated to begin construction in 2026.
Digital tools are pulling their weight. Jeppesen Crew Pairing reduced crew duty days by 16% and saved 17% of seats through better crew positioning, while improving constrained Flight Duty Period buffers by 26%. Fuel-optimisation with StorkJet is supporting up to a 2% reduction in fuel burn, meaningful given USD 331 million of fuel expense in 2025.
Cash, hedging and currency
Liquidity remains solid with USD 472.9 million of cash and a cash-to-sales ratio of 32.5%. Net Debt/EBITDAR is 1.80x, still within medium-term guidance. Approximately 70% of fuel is uplifted in Kazakhstan; for international uplift, the Group is hedged 100% for Q1 2026 and 25% for Q2 2026 with caps of USD 70 and USD 65 per barrel, with no downside risk disclosed.
Currency moved against FlyArystan. The depreciation of the Kazakh Tenge had a negative effect on FlyArystan’s EBITDAR of USD 18.4 million, partly offset by a smaller positive impact at Air Astana. Domestic fare adjustments came after the peak season, which dampened the mitigation.
Leadership transition: Peter Foster out, Ibrahim Canliel in
These are the final results under long-serving CEO Peter Foster, who moves to a senior advisor role. From April, former CFO Ibrahim Canliel takes the helm, with Gonçalo Pires joining as CFO and Johan Eidhagen becoming President of FlyArystan. Continuity looks strong given Canliel’s 15 years as a commercial leader and his role in the IPO.
Outlook and my take
The near-term playbook is clear: realign capacity to the highest-margin routes, protect load factor in the low-to-mid 80s, and keep chipping away at CASK as grounded aircraft return. Management guides to growth in 2026 and maintains medium-term targets of mid-to-high 20s EBITDAR margin, liquidity above 25% and leverage below 3.0x Net Debt/EBITDAR. The fleet is expected to reach 86 aircraft by the end of 2030.
My view: the strategy is credible, and Q4’s RASK rebound shows pricing power when capacity is pointed at the right markets. The drag remains the engine backlog that may persist through 2028 and the risk of further geopolitical and currency shocks. If UER pressures ease into the summer and the codeshares start to scale, margins should begin to rebuild as fixed costs are spread over more ASKs.
What to watch next
- RASK minus CASK trend in Q1–Q2 2026 as peak-season planning kicks in.
- Number of grounded aircraft and turnaround times from engine shop visits.
- Progress and timing of compensation from Pratt & Whitney.
- Traffic contribution from China Southern and Air India codeshares.
- Currency impact on FlyArystan and any further domestic fare actions.
- Cash trajectory versus capex and lease obligations as new aircraft arrive.
Where to dig deeper
Full IFRS financial statements and the results webcast are available on the company’s investor relations site: ir.airastana.com.
