Preparing for Takeoff?What will be the results for Kazakhstan's largest airline after such a spectacular start to the year? In the first quarter, Air Astana reported a loss of 5.2 billion tenge. In comparison, the company earned a net profit of 423.110 million tenge in the first quarter of 2023. The airline explained to Interfax-Kazakhstan that traditionally, the first quarter is weak for all regional airlines, with the majority of profits coming in the second and third quarters.Forecasts for the first half of the year are more optimistic. Freedom Finance Global analyst Daniyar Orazbaev expects Air Astana to report a profit for January-June, though it will be 1.5 times smaller than the previous year. This sharp decline is anticipated due to IPO-related expenses."We estimate that Air Astana's net profit for the first half of the year will be 4.5 billion tenge, which is 57% less than in 2023. This significant drop is attributed to one-time expenses, including those related to the IPO. We expect a 15% year-on-year increase in revenue due to rising passenger traffic in Kazakhstan," Orazbaev comments.In comparison, for January-June 2023, Air Astana reported a net profit of 10.535 billion tenge, while for the same period in 2022, the profit was 4.949 billion tenge.The Kazakhstan Minority Shareholders Association (QAMS) has expressed concerns about the disappointing performance of Air Astana's stock and is hoping for more than just financial figures from the upcoming conference call. Daniyar Temirbayev, the association's executive director, highlighted the uncertainty surrounding the airline's stock and potential risks to its dominant position in the Kazakh market.Temirbayev pointed to the recent deal where the Samruk-Kazyna fund sold a 100% stake in QazaqAir to the Vietnamese company Sovico, which has committed to purchasing 50 aircraft for the Kazakh carrier’s fleet. This raises questions about the impact of Sovico’s plans on Air Astana, including the timing and destinations of the new aircraft and potential competition on both domestic and international routes.He noted that while QazaqAir focused on domestic flights, the new investor might expand into international routes, potentially competing with Air Astana. Temirbayev emphasized the need for clarity on how Sovico's entry might affect Air Astana’s future plans, including its goal to expand its fleet to 80 aircraft within five years."It’s likely that the Vietnamese company is targeting international routes, possibly focusing on transit between Europe and Southeast Asia. However, this is only speculation, and the conference call should provide clarity on this issue. It’s important to understand the level of competition posed by the Vietnamese company and how critical it is for Air Astana, which has its ambitious plans. Air Astana aims to expand its fleet to 80 aircraft within five years, but these plans are now in question as it remains unclear how the new market entrants might impact them," he said. (ICE ALMATY)

Fonte notizia: INTERFAX