Air Astana to raise ticket prices due to rising fuel prices

Air Astana, the largest airline group in Central Asia, will adjust ticket prices due to rising fuel prices. "A significant rise in the price of jet fuel will inevitably lead to an increase in costs and a forced revision of the tariff policy to compensate for rising costs and ensure the financial stability of Air Astana Group," the airline's corporate communications department told Oninvest.

A representative of the group did not specify how strong the price increase could be, noting that despite the fact that Air Astana purchases jet fuel directly from refineries, jet fuel remains one of the main items of its operating expenses.

Air Astana Group includes national carrier Air Astana and low-cost carrier FlyArystan. There are 62 airplanes in operation, operating 112 routes in 20 countries.

About 41% of the airline is owned by the Kazakh state structure Samruk-Kazyna. March 19, it became known that the British defense concern BAE Systems, which was a co-founder of Air Astana and gradually reducing its participation in the capital, intends to sell the remaining stake in the Kazakh company (6.9% of shares).

Jet fuel prices have risen more than 50 percent since the start of the war in the Middle East and are hovering between $150 and $200 a barrel, Reuters wrote.

Due to rising fuel prices, the Scandinavian airline SAS has already announced the reduction of about 1,000 flights and a sharp increase in ticket prices. American Delta and Australian Qantas have also reported price increases. And Air New Zealand last week said it would reduce the number of flights by 5% through early Ma - affecting about 44,000 passengers, WSJ notes.

This article was AI-translated and verified by a human editor