KATHMANDU, Aug 7: Nepal Airlines Corporation (NAC), the country’s national flag carrier, has reported a decline in both passenger traffic and annual revenue for the Fiscal Year (FY) 2024/25. According to data released by the state-owned airliner, it served a total of 575,569 passengers over the past year, earning a total revenue of Rs 14.88 billion. This figure is a 3 percent decrease compared to the previous fiscal year ( FY 2023/24), during which the airline had transported 614,787 passengers and earned Rs 15.43 billion.
The revenue loss of approximately Rs 540 million is largely attributed to operational disruptions caused by scheduled maintenance checks, known as “C-checks,” on the airline’s two wide-body aircraft. These long-haul aircraft were grounded consecutively for almost six months, significantly impacting the airline's international flight capacity and earnings.
Diversifying Government Revenue
Despite the downturn, NAC claims there is an opportunity to reclaim lost market share in the current fiscal year (FY 2025/26), as both wide-body aircraft are expected to remain in full operation, with no scheduled C-checks. NAC spokesperson, Subash Dangi, stated that all four of NAC’s aircraft are anticipated to operate at full capacity, which should improve passenger volume and revenue figures compared to the previous year.
In the fiscal year 2024/25, Nepal Airlines Corporation (NAC) witnessed fluctuating monthly passenger numbers and earnings. Beginning with Shrawan (mid-July to mid-August), the airline carried 39,000 passengers, generating Rs 940 million in revenue. In Bhadra (mid-August to mid-September), it transported 29,000 passengers and earned Rs 690 million. The following month, Asoj (mid-September to mid-October), saw 46,000 passengers bringing in Rs 1.43 billion, while in Kartik (mid-October to mid-November), 48,000 passengers contributed to Rs 1.47 billion in earnings. During Mangsir (mid-November to mid-December), NAC flew 53,000 passengers, earning Rs 1.31 billion. In Poush (mid-December to mid-January), the airline carried 44,000 passengers, also collecting Rs 1.31 billion. In Magh (mid-January to mid-February), 45,000 passengers added Rs 1.15 billion to NAC’s income. In Falgun (mid-February to mid-March), two sets of data show the airline carried 44,000 and 47,000 passengers respectively, each resulting in Rs 1.35 billion in earnings. In Chaitra (mid-March to mid-April), the airline served 53,000 passengers and generated Rs 1.58 billion. During Baisakh (mid-April to mid-May), NAC carried 50,000 passengers, earning Rs 1.43 billion. In Jestha (mid-May to mid-June), it flew 49,000 passengers, bringing in Rs 1.18 billion. Finally, in the month of Asar (mid-June to mid-July), 50,000 passengers contributed Rs 1 billion in revenue.
According to the NAC, both wide-body aircraft required scheduled C-checks consecutively starting from August of the previous year, and each aircraft remained grounded for over 80 days. This significantly disrupted operations and led to the decline in passenger traffic and earnings.
In the last three days, NAC’s narrow-body Airbus A320 aircraft have faced back-to-back grounding issues. After one aircraft was repaired and returned to service, another developed electrical issues and was grounded on Wednesday evening. The airline has stated that the aircraft is undergoing maintenance and is expected to resume service by Thursday.