Air Astana delays expansion, faces short-term challenges. But long-term outlook remains bright

Kazakhstan's Air Astana has delayed capacity expansion in response to challenging local market conditions brought about by the rapid devaluation of the Kazakhstan tenge. The carrier has been unprofitable in 1H2014 but market conditions have started to improve and it still aims to end the year in the black, keeping intact its decade-long profit streak.

Air Astana, which was initially planning 14% ASK growth in 2014, will now keep capacity flat for the entire year. Aircraft utilisation rates will decrease as Air Astana continues to expand its fleet in 1H2014.

Capacity growth and network expansion will resume in 2015, with new routes to Paris, Prague and Tel Aviv. Air Astana's long-term outlook remains bright as it benefits from its position as the leading carrier in Central Asia and as the recent lifting of EU restrictions enables the carrier finally to pursue expansion in Europe.