Air Astana Group reported a 13.2 per cent rise in first-quarter revenue to US$331 million, as it reallocated capacity from the Middle East to Asian and European routes. The airline is leveraging increased east-west connecting traffic to offset regional volatility and rising unit costs.
Following the suspension of flights to Doha, Dubai, Jeddah and Madinah, the Kazakhstan-based carrier redirected capacity towards higher-yield markets. This shift boosted available seat kilometres to South-east Asian leisure destinations and key business markets in China and India.
“Within 48 hours of the Gulf conflict starting, we had already begun reallocating our aircraft to support the rapidly evolving demand conditions which have become a new norm,” said Ibrahim Canliel, CEO of Air Astana.
The realignment led to a 65 per cent year-on-year increase in international-to-international connecting traffic during the quarter, with a sharper rise towards the end of the period.
“We saw a 65 per cent increase of international transit traffic during the first quarter, which was driven largely by a 158 per cent increase during the month of March alone,” Canliel said.
To support growth in Asia, the group launched direct flights to Shanghai in March and plans to operate up to 50 weekly services to China by June across Air Astana and its low-cost subsidiary, FlyArystan. The group also expects delivery of its first two Boeing 787-9 aircraft later this year, offering extended range and upgraded business class configurations aimed at longhaul corporate travel.
Despite higher revenue and load factors, cost per available seat kilometre rose 19.8 per cent, alongside capacity constraints linked to ongoing Pratt & Whitney engine issues. Management said it remains focused on mitigating these costs ahead of the peak summer season.
“We believe that these levels do not reflect the structural cost advantage that the group has in the industry and that we plan to leverage on going forward,” said Air Astana’s chief financial officer Goncalo Pires.
Air Astana plans to expand its fleet to 86 aircraft by 2030, comprising 54 aircraft for the Air Astana brand and 32 for FlyArystan.
The airline views its geographic shift not as a temporary adjustment but as a longer-term change in regional aviation dynamics.
“Our strategy stands sound in the new normal, and it is the execution of it over the coming quarters that is going to be key,” Canliel concluded.
