Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Airlines Corporation (NAC), the state-owned flag carrier, has witnessed a decline in both passenger traffic and revenue in the fiscal year 2081/82 (2024/25). The corporation earned Rs 15.31 billion, serving 575,569 passengers — a drop of 3 percent compared to the previous fiscal year, when it had earned Rs 15.43 billion by flying 614,787 passengers.
According to NAC spokesperson Subash Dangol, the primary reason behind the decline was the extended grounding of both wide-body aircraft last year. These two Airbus A330s were taken out of operation one after the other for over 80 days each due to scheduled C-check maintenance, severely disrupting long-haul international services and directly impacting revenue.
Data provided by NAC shows monthly fluctuations in revenue and passenger numbers. In Ashar, the corporation earned Rs 1 billion from 50,000 passengers, while in Jestha, it earned Rs 1.18 billion flying 49,000 passengers. The highest monthly earnings were in Chaitra, with Rs 1.58 billion from 53,000 travelers. Revenue also remained above Rs 1.3 billion for most months between Mangsir and Baisakh, except for Bhadra (Rs 690 million) and Shrawan (Rs 940 million) due to seasonal low demand and maintenance-related cancellations.
Despite setbacks, NAC is optimistic about fiscal year 2082/83. “Both wide-body aircraft will not be scheduled for C-checks this year, and all four aircraft in our fleet are expected to be fully operational,” said Dangol. “This presents an opportunity to recover lost market share and increase earnings.”
However, new challenges persist. Over the past three days, NAC’s narrow-body Airbus A320 fleet has experienced technical issues. One aircraft returned to operation after repairs only to have the second grounded the same evening due to electrical system failure. The airline is now working to return the aircraft to service by Thursday.
Though the airline remains hopeful about its financial rebound, continued operational instability, aging fleet, and limited capacity raise concerns over its ability to compete in the international aviation market.
NAC is under growing pressure to stabilize operations, improve maintenance schedules, and enhance reliability to restore passenger trust and boost revenues in the competitive South Asian aviation landscape.
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