Nepal Airlines is making more money, still losing money
Summary
Nepal Airlines Corporation posted higher revenue in the last fiscal year but is still expected to book a deficit of around Rs1 billion as debt, interest costs and operating expenses continue to weigh on its finances. The state-owned carrier is also struggling with a small fleet, grounded aircraft and revenue targets that remain well below budget.
Key Points
- Nepal Airlines Corporation estimates revenue of around Rs23.40 billion and expenses of about Rs24.40 billion for the last fiscal year, leaving an expected deficit of roughly Rs1 billion.
- The airline’s debt remains its biggest burden, with total liabilities estimated at around Rs51 billion and talks under way to restructure loans and reduce interest costs.
- Ground handling is a major source of income, but revenue from the service remains below budgeted targets.
- Only six of NAC’s 11 aircraft are operational, limiting its ability to expand domestic and international services.
