Q2 2026 Air Astana JSC Earnings Call

August 5, 2026

Simon Wray: Good afternoon, welcome to the Air Astana Q2 2026 results presentation for the period ending 30 June 2026. Many thanks for joining us. Shortly, our CEO and CFO will present the operating performance and financial results for the period, after which there will be the opportunity for Q&A. Please feel free to submit your questions via the appropriate link on your invitation at any stage, and we'll try and get to as many of those as time allows. As usual, this call will be recorded and made available on the Air Astana Investor Relations website. Of course, if you have any further questions after today's call, please feel free to get in touch with Air Astana's IR team, who'll be more than happy to help. With that, I'd like to hand over to Ibrahim to begin the presentation.

Speaker #1: Good afternoon, and welcome to the Air Astana Q2 2026 results presentation for the period ended June 30, 2026. Many thanks for joining us. Shortly, our CEO and CFO will present the operating performance and financial results for the period, after which there will be an opportunity for Q&A.

Speaker #1: Please feel free to submit your questions via the appropriate link on your invitation at any stage, and we'll try to get to as many of those as time allows.

Speaker #1: As usual, this call will be recorded and made available on the Air Astana Investor Relations website. Of course, if you have any further questions, please get in touch with Air Astana's IR team; we will be more than happy to help.

Speaker #1: With that, I'd like to hand over to Ibrahim to begin the presentation.

Speaker #2: Thank you very much, Simon. I'd also like to add my own welcome to our Q2 results presentation. Good morning and good afternoon to everyone. It's been an interesting quarter for both Air Astana and the aviation industry as a whole, so I'm excited about the opportunity today to present how we have been proactively dealing with the challenges and opportunities.

Ibrahim Canliel: Thank you very much, Simon. I'd like to add my own welcome to our Q2 results presentation. Good morning. Good afternoon to all. It's been an interesting quarter for both Air Astana and the aviation industry as a whole, I'm excited about the opportunity today to present how we have been proactively dealing with the challenges and opportunities. I would like to start where we concluded the Q1 presentation, namely on the six areas where we were directing our attention and will continue to do so for the remainder of 2026. Gonçalo and I have been entirely focused on addressing them in the Q2 and beyond. The first and most significant is the turnaround on Pratt & Whitney that has been at the forefront of our priorities to reduce the groundings and, most importantly, to increase our production.

Speaker #2: I would like to start where we concluded the first quarter presentation—namely, on the six areas where we were directing focus and will continue to do so for the remainder of 2026.

Speaker #2: Consola and I have been entirely focused on addressing them in the second quarter and beyond. The first and most significant is the turnaround on Pratt & Whitney, which has been at the forefront of our priorities to reduce the groundings and, most importantly, to increase our production.

Speaker #2: Since we last talked in May, we've had five sea-level meetings with Pratt & Whitney, in order to drive a step change in the progress on this issue.

Ibrahim Canliel: Since we last talked in May, we've had five C-level meetings with Pratt & Whitney in order to drive a step change in the progress on this issue. A turnaround requires both more inductions, that is slots for engines to be repaired, and additional engines. Today, I'm very pleased to state that as a result of those discussions, we are now aiming for 2026 inductions to be three times the number that we had in 2025, with a continued acceleration in 2027. The mitigating actions were further supported with spare engines, reaching now a number of 26. As a result, we have halved the number of groundings in summer 2026 compared to summer 2025. The most important news that we want to convey today is that we are looking at zero groundings in summer 2027, enabling us to fly all of our capacity during the next summer.

Speaker #2: A turnaround requires both more inductions—that is, slots for engines to be repaired—and additional engines. Today, I'm very pleased to state that as a result of those discussions, we are now aiming for 2026 inductions to be three times the number that we had in 2025, and with a continued acceleration in 2027.

Speaker #2: The mitigating actions were further supported, with spare engines now reaching a total of 26. As a result, we have halved the number of groundings in summer 2026 compared to summer 2025.

Speaker #2: And the most important news that we want to convey today is that we are looking at zero groundings in summer 2027. This will enable us to fly all of our capacity during the next summer.

Speaker #2: The second quarter marks not only a step change in our visibility on this protracted issue, but also an inflection point in the impact it has on our capacity.

Ibrahim Canliel: The Q2 marks not only a step change in our visibility on this protracted issue, but an inflection point in the impact it has on our capacity. Consequently, we are confident that the increase of asset utilization will have an improving impact in the near term, both on production and on costs. The cost discipline remained with the capacity remaining constrained in the Q2, translating into a higher unit cost and margin pressure, which we are determined to resolve. We have begun implementing a strategic plan to address costs within the business as well as a revised budgeting process. With the clearer visibilities that we now have on engine restrictions, we have strong grounds for confidence in improvements in our unit costs. In addition, we have made good progress in a number of cost areas, particularly the successful conclusion of negotiations with both Almaty and Astana airports.

Speaker #2: Consequently, we are confident that the increase in asset utilization will have an improving impact in the near term, both on production and on cost.

Speaker #2: The cost discipline remained, with the capacity remaining constrained in the second quarter, translating into a higher unit cost and margin pressure, which we are determined to resolve.

Speaker #2: We have begun implementing a strategic plan to address costs within the business, as well as a revised budgeting process. With the clearer visibility that we now have on engine restrictions, we have strong grounds for confidence in improvements in our unit costs.

Speaker #2: In addition, we have made good progress in a number of cost areas, particularly with the successful conclusion of negotiations with both Almaty and Astana airports.

Speaker #2: Third, we benefit from a stable supply and pricing structure in Kazakhstan, which remains comparable to the February pricing, and we have been able to increase our domestic uplift in the second quarter from 70% to 80%.

Ibrahim Canliel: Third, we benefit from a stable supply and pricing structure in Kazakhstan, which remains comparable to the February pricing. We have been able to increase our domestic uplift in Q2 from 70% to 80%. This effectively gives us a counter-cyclical cost advantage in an environment when airlines globally are struggling to pass on the extreme fuel price hikes. Fourth, the delivery of the exceptional product should not be compromised by the cost discipline. We have been able to significantly improve, not just maintain, the on-time performance as a result of a focused planning and successful execution entering into the peak season. This reflection of our customers has translated into a significant improvement of our net promoter score over the course of the quarter, thanks to the dedication and professionalism of the Air Astana Group staff and crew. The new normal.

Speaker #2: This effectively gives us a counter-cyclical cost advantage in an environment when airlines globally are struggling to pass on the extreme hikes. Fourth, the delivery of the exceptional product should not be compromised by our cost discipline.

Speaker #2: We have been able to significantly improve, not just maintain, the on-time performance as a result of focused planning and successful execution entering into the peak season.

Speaker #2: This reflection of our customers has translated into a significant improvement in our Net Promoter Score over the course of the quarter, thanks to the dedication and professionalism of the Air Astana Group staff and crew.

Speaker #2: The new normal: we discussed the impact of the Gulf conflict at the first quarter results, at which point the disruption was still in its infancy.

Ibrahim Canliel: We discussed the impact of the Gulf conflict at the Q1 results, at which point the disruption was still in its infancy. Our agility in dealing with that and reallocating capacity has allowed us to not only increase revenue by over 18% in the quarter, but has expanded our network to the benefit of our passengers across Air Astana and FlyArystan. Finally, as you know, we are expecting the delivery of our first Boeing 787-9 aircraft. The necessary preparations are well underway, and we are looking forward to introducing them into our fleets. This will have a further positive implication for our customer experience and route opportunities going forward. Moving to the group performance and our headline KPIs.

Speaker #2: Our agility in dealing with that, and reallocating capacity, has allowed us to not only increase revenue by over 18% in the quarter, but has also expanded our network to the benefit of our passengers across Air Astana and FlyArystan.

Speaker #2: And finally, as you know, we are expecting the delivery of our first Boeing 787-9 aircraft. The necessary preparations are well underway, and we're looking forward to introducing them into our fleet.

Speaker #2: This will have a further positive implication for our customer experience and route opportunities going forward. Moving to the group performance and our headline KPIs.

Speaker #2: Further to the capacity reallocation touched upon earlier, we have continued to see very strong top-line growth, with revenues rising by 18.3% in the second quarter versus the same period last year.

Ibrahim Canliel: Further to the capacity reallocation touched upon earlier, we have continued to see very strong top-line growth, with revenues rising by 18.3% in Q2 versus the same period of last year. The strong RASK performance confirms that we are addressing the right markets and that our business model is strong. Our capacity and load factor are broadly flat in the quarter, whilst the cost headwinds discussed have continued to impact profitability. Our RASK minus CASK differential for Q2 is at +$0.49, marking a notable correction from the negative differential we reported in our Q1 results. However, there is still work to do. Gonçalo will expand on all of the financial results and their details shortly. We are rightly very proud of the Air Astana product and appeal to external validation to ensure that we are delivering the service that our passengers expect.

Speaker #2: The strong RASK performance confirms that we are addressing the right markets and that our business model is strong. Our capacity and load factor are broadly flat in the quarter, while the cost headwinds discussed have continued to impact profitability.

Speaker #2: Our RASK minus CASK differential for the second quarter is a positive 0.49 cents, marking a notable correction from the negative differential we reported in our first-quarter results.

Speaker #2: However, there is still work to do, and Gonçalo will expand on all of the financial results and their details shortly. We are rightly very proud of the Air Astana product, and appeal to external validation to ensure that we are delivering the service that our passengers expect.

Speaker #2: Our operational teams have been working both internally and closely with the airports ahead of the summer peak. As a result of planning, discipline, and successful execution, our on-time performance in the second quarter marked an industry-leading 87.6%, an improvement of 5.9 percentage points over 2025.

Ibrahim Canliel: Our operational teams have been working both internally and closely with the airports ahead of the summer peak. As a result of planning, discipline, and successful execution, our on-time performance in Q2 marked an industry-leading 87.6%, an improvement of 5.9 percentage points over 2025. Notwithstanding the summer peak, our OTP in July improved 9.2 points from July 2025, reaching 85.5%. Equally, our net promoter score has continued its positive trend with an impressive 4 percentage point increase in June versus June 2025. The trend in the current quarter is even more encouraging, with a 12-point improvement in the month of July. The significant point here is that we have seen NPS increasing as our level of activity has also increased, which is both uncommon and a very positive reflection on the service our teams are delivering.

Speaker #2: Notwithstanding the summer peak, our OTP in July improved by 9.2 points from July 2025, reaching 85.5%. Equally, our Net Promoter Score has continued its positive trend with an impressive 4-point increase in June versus June 2025.

Speaker #2: The trend in the current quarter is even more encouraging, with a 12-point improvement in the month of July. The significant point here is that we have seen NPS increasing as our level of activity has also increased, which is both uncommon and a very positive reflection on the service our teams are delivering.

Speaker #2: I would like to take this opportunity to thank all of my colleagues contributing to such strong on-time performance and Net Promoter Score improvement, both customer-facing and in the back office, who supported these results.

Ibrahim Canliel: I would like to take this opportunity to thank all of my colleagues contributing to such strong on-time performance and Net Promoter Score improvement, both customer facing and the back office who supported these results. Our fleet plan has not changed since the Q1 announcements and still reflects our commitment to grow. Our fleet plan, this includes 83 Airbus A320 family aircraft and three Boeing 787s that we are due to receive in the next 12 months, representing a young, simple, and efficient fleet. From a brand perspective, we anticipate that these will be split 54/32 in favor of Air Astana versus FlyArystan. Robust and stable growth in our capacity to meet the evolving demand for air travel in our region and beyond is fundamental to our fleet planning. It also supports our comparatively young fleet age, which ensures that we are flying the most efficient and comfortable aircraft available.

Speaker #2: Our fleet plan has not changed since the Q1 announcements, and still reflects our commitment to grow. Our fleet plan will include 83 Airbus A320 family aircraft and 3 Boeing 787s that we are due to receive in the next 12 months.

Speaker #2: Representing a young, simple, and efficient fleet. From our brand perspective, we anticipate that these will be split 54/32 in favor of Air Astana versus FlyArystan.

Speaker #2: Robust and stable growth in our capacity to meet the evolving demand for air travel in our region and beyond is fundamental to our fleet planning.

Speaker #2: It also supports our comparatively young fleet age, which ensures that we are flying the most efficient and comfortable aircraft available. By the end of 2027, we will have 77 aircraft in the fleet, including three Boeing 787-9s.

Ibrahim Canliel: By the end of 2027, we will have 77 aircraft in the fleet, including the three Boeing 787-9s. We also have a significant order book with both Airbus and Boeing for the purchases we announced in the Q4 of 2025. This longer-term plan allows us to evolve the ownership structure of the aircraft within our fleet. Further, it offers the flexibility to capitalize on the growth opportunities we see in the increasing transit flows through Kazakhstan. On that note, I would like to conclude the first section with three slides on our market environment and to give you context around the developments we have seen over the course of the last quarter.

Speaker #2: We also have a significant order book with both Airbus and Boeing for the purchases we announced in the fourth quarter of 2025. This longer-term plan allows us to evolve the ownership structure of the aircraft within our fleet.

Speaker #2: Further, it offers the flexibility to capitalize on the growth opportunities we see in the increasing transit flows through Kazakhstan. On that note, I would like to conclude the first section with three slides on our market environment and give you context around the developments we have seen over the course of the last quarter.

Speaker #2: In the wake of the Gulf conflict, our dynamic capacity allocation model allowed us to expand and rebalance our network towards more international markets, supported by new routes and additional frequencies across both of our brands, Air Astana and FlyArystan.

Ibrahim Canliel: In the wake of the Gulf conflict, our dynamic capacity allocation model allowed us to expand and rebalance our network towards more international markets, supported by new routes and additional frequencies across both of our brands, Air Astana and FlyArystan. This summer schedule comprises approximately 330 weekly international services, including 102 across Central Asian Caucasus, and more than 500 weekly domestic services across Kazakhstan. This network expansion, and particularly its regularity, is a key driver of increased connectivity and transit traffic potential. China was the principal area of international expansion, with the group operating up to 51 weekly frequencies to seven destinations, which will reach nine before the year ends, and summer capacity increasing by 91% year-on-year. We also increased services to India by 41% this year.

Speaker #2: This summer schedule comprises approximately 330 weekly international services, including 102 across Central Asia and the Caucasus, and more than 500 weekly domestic services across Kazakhstan.

Speaker #2: This network expansion, and particularly its regularity, is a key driver of increased connectivity and transit traffic potential. China was the principal area of international expansion, with the group operating up to 51 weekly frequencies to 7 destinations, which will reach 9 before the year-end, and summer capacity increasing by 91% year-on-year.

Speaker #2: We also increased services to India by 41% this year. That connected extremely well with the 15 daily services across Central Asia and the Caucasus—coincidentally, the same number of daily services as we have on our flagship Almaty-Astana route.

Ibrahim Canliel: That connected extremely well with the 15 daily services across Central Asian Caucasus, coincidentally, the same number of daily services as we have on our flagship Almaty-Astana route. This is data for the H1 rather than Q2 to accurately reflect that much of the reallocation was achieved as soon as the conflict broke out, and therefore March was a crucial month. We increased services into Europe as part of the summer program, launching new routes to Larnaca and Dalaman. Other seasonal routes include to Podgorica in Montenegro, Batumi in Georgia, Bodrum in Turkey, and Da Nang and Nha Trang in Vietnam. This international expansion was across both of our brands, broadening point-to-point travel options while supporting transit connectivity through the group's Almaty and Astana hubs. FlyArystan is back on the international growth arena, adding Almaty-Xi'an and Aktau-Urumqi to its network in China, and announced already Chongqing for autumn.

Speaker #2: This is data for the first half, rather than Q2, to accurately reflect that much of the reallocation was achieved as soon as the conflict broke out, and therefore March was a crucial month.

Speaker #2: We increased services into Europe as part of the summer program, launching new routes to Larnaca and Dolomiti. Other seasonal routes include Podgorica in Montenegro, Batumi in Georgia, Bodrum in Turkey, and Da Nang and Nha Trang in Vietnam.

Speaker #2: This international expansion was across both of our brands, broadening point-to-point travel options while supporting transit connectivity through the Group's Almaty and Astana hubs. FlyArystan is back on the international growth arena, adding Almaty–Xi'an and Aktau–Urumqi to its network in China, and has already announced Chongqing for autumn.

Speaker #2: It also increased its foothold in Uzbekistan, with Samarkand services and Urgench starting from the month of September. We saw an 82% increase in international connecting traffic in Q2.

Ibrahim Canliel: It also increased its foothold in Uzbekistan with Samarkand services and Urgench that is starting from the month of September. We saw an 82% increase in international connecting traffic in Q2 on higher yields, accelerating from the 65% in Q1. This demonstrates that the counter-cyclical nature of the airline in the new normal is succeeding in its new operating environments. Most importantly, the redistribution efforts paid off. The dynamic capacity allocation model worked. In each region to which Middle East capacity was reallocated, we noted higher year-on-year revenue in H1 on both an absolute and unit basis. The impressive 11% RASK growth for H1 accelerated in Q2 with 18.5% growth in Q2, supported by strong performances both at Air Astana and FlyArystan.

Speaker #2: On higher yields, accelerating from the 65% in the first quarter. This demonstrates that the countercyclical nature of the airline in the new normal is succeeding in its new operating environments.

Speaker #2: Most importantly, the redistribution efforts paid off. The dynamic capacity allocation model worked. In each region to which Middle East capacity was reallocated, we noted higher year-on-year revenue in the first half, on both an absolute and unit basis.

Speaker #2: The impressive 11% RASK growth for the first half accelerated in Q2 with an 18.5% growth in the second quarter, supported by strong performances from both Air Astana and FlyArystan.

Speaker #2: As I'm now getting into the next section, I'm running the risk of reaching into my former CFO material, so I'll pass the baton to Gonçalo, who will take you through some of the more granular details around the financial results for the second quarter.

Ibrahim Canliel: As I'm now getting into the next section, I'm running the risk of reaching out into my former CFO material. I'll pass the baton to Gonçalo, who will take you through some of the more granular detail around the financial results for Q2. Over to you, Gonçalo.

Speaker #2: Over to you, Gonçalo.

Speaker #1: Thank you, Ibrahim. Good morning, everyone. I’m Gonçalo Pires, CFO. Over the next few minutes, I’ll take you through the numbers outlined. The headline is straightforward: strong revenue growth, real cost pressure, and a clear, funded plan to close the gap.

Gonçalo Pires: Thank you, Ibrahim. Good morning, everyone. I'm Gonçalo Pires, CFO. Over the next few minutes, I'll take you through the numbers behind the story Ibrahim just outlined. The headline is straightforward. Strong revenue growth, real cost pressure, and a clear funded plan to close the gap. Let me show you exactly where the pressure sits and what we are doing about it. This table frames the whole Q2. Group revenue up 18.3% on capacity that was essentially flat. ASK is down just 0.2%. That's the dynamic reallocation story in one line. We grew the top line without growing the production. RASK is up 18.5%, CASK up 24.3%. The gap is an important takeaway of the quarter. EBITDA down modestly, 3.7% to $93.6 million.

Speaker #1: Let me show you exactly how the pressure sits and what we are doing about it. This table frames the whole second quarter. Group revenue is up 18.3% on capacity that was essentially flat.

Speaker #1: CAS is down just 0.2%. That's the dynamic allocation story in one line. We grew the top line without growing the production. RASK is up 18.5%, but CASK is up 24.3%.

Speaker #1: The gap is an important takeaway of the quarter. EBITDA was down modestly, 3.7% to $93.6 million. Air Astana grew capacity 7.4%, but FlyArystan ASK went down 16%, as we continue to be affected by a number of AOGs due to the PW issue.

Gonçalo Pires: Air Astana grew capacity 7.4%, FlyArystan ASK went down 16% as we continue to be affected by a number of AOGs due to the PW issue. Both brands grew unit revenue. FlyArystan RASK up over 21%. H1 tells the same story with more weight behind it. Revenue up 16% to $774 million. RASK up nearly 16%, CASK up 22%. Margins compressed about five points, up to 18.6%. I want to be candid. Unit costs outrun unit revenue in both periods. That's the challenge. The remaining of this financial section that I will cover is about why, and why we are confident we will be able to reverse it. Quickly on capacity, because it underpins everything else. Group ASK is broadly flat, that masks a deliberate strategy.

Speaker #1: Both brands grew unit revenue. FlyArystan RASK up over 21%. The half-year tells the same story, with more weight behind it. Revenue up 16% to $774 million.

Speaker #1: RAS is up nearly 16%, but CASC is up 22%. So, margins compressed about 5 points, down to 18.6%. I want to be candid—unit costs outpaced unit revenue in both periods, and that's the challenge.

Speaker #1: The remainder of this financial section that I will cover is about why— and why we are confident we will be able to reverse it.

Speaker #1: Quickly on capacity, because it underpins everything else. Group AOS case is broadly flat, but that masks a deliberate strategy. Air Astana is up 6 or 7%, depending on the period, but FlyArystan is down as we gave preference in engine allocation to the higher-yield brand of the group.

Gonçalo Pires: Air Astana is up 6% or 7%, depending on the period, but FlyArystan is down as we gave preference to in-engine allocation to the higher yield brands of the group. Load factor held 81.6% in the quarter, 82.4% for the half, actually up 0.7% points year on year. Connecting traffic share rose from 6% to 9%, reflecting an increasing trend that we will be even more strategic for the group going forward. The investment of Almaty and Astana as hubs. On revenue, this is the good news, and it's real. Group revenue up 18% in the quarter, 16% in the half, driven by unit revenue, not volume. This reflects the strong market opportunity of the group and in which we plan to invest. Both brands contributed. Air Astana with revenue up 24% in Q2, and importantly, this is quality growth, higher yielding international traffic replacing lower yielding domestic.

Speaker #1: Load factor held at 81.6% in the quarter and 82.4% for the half, actually up 0.7 percentage points year-on-year. Connecting traffic share rose from 6% to 9%, reflecting an increasing trend that will be even more strategic for the group going forward.

Speaker #1: The investment in Almaty and Astana as hubs. On revenue—and this is the good news, and it's real—group revenue is up 18% in the quarter and 16% in the half.

Speaker #1: Driven by unit revenue, not volume. This respects the strong market opportunity of the group, in which we plan to invest. Both brands contributed.

Speaker #1: Air Astana revenue is up 24% in the second quarter, and importantly, this is quality growth—higher-yielding international traffic replacing lower-yielding domestic. It's the third straight quarter of unit revenue recovery.

Gonçalo Pires: It's the third straight quarter of unit revenue recovery. Now the cost side. Now this bridge is the single most important slide in my section, so let me be precise. CASK ex fuel rose 22% year on year. Fuel and handling together drove 44% of the increase. Fuel, because of international fuel prices near double at our overseas stations. Handling and navigation, because we are flying more to international sectors. The rest is fixed and semi-fixed costs, labor, ownership, and maintenance spread across a capacity base that didn't grow, partly because of the Pratt & Whitney groundings, and that's the key insight. Much of this cost pressure is dilution, not overspend. As production recovers, these unit costs should fall mechanically. To put numbers on it, group CASK $0.0729 in the quarter, up 24%. CASK ex fuel $0.054 up 22%.

Speaker #1: Now, the cost side. And this is the bridge, and now this bridge is the single most important slide in my section. So let me be precise.

Speaker #1: CASC X fuel rose 22% year-on-year. Fuel and handling together drove 44% of the increase—fuel because international fuel prices nearly doubled at our overseas stations.

Speaker #1: Handling and navigation, because we are flying more to international sectors. The risk is fixed and semi-fixed cost: labor, ownership, and maintenance, spread across the capacity base that didn’t grow.

Speaker #1: Partly because of the Pratt & Whitney groundings—and that's the key insight—much of this cost pressure is dilution, not overspend. As production recovers, these unit costs should fall mechanically.

Speaker #1: To put numbers on it, group CASC was 7.29 cents in the quarter, up 24%. CASC ex-fuel was 5.4 cents, up 22%. Both brands move together, so this isn't an entity problem.

Gonçalo Pires: Both brands move together, so this isn't an entity problem. It's a group wide production and input cost issue. It's the issue we are now managing directly. We have concluded cost negotiations with both Almaty and Astana airports. We have begun a zero-based cost review across the business. Which brings us to the EBITDA. Group EBITDA $93.6 in the quarter, down 3.7%, $142 million for the half, down 10%. Three drivers, and I'll name them plainly. Higher fuel and labor costs, the tenge strengthening, which eroded our dollar-linked margins, and the Pratt & Whitney cost drag. Air Astana held EBITDA essentially flat in the quarter, down just 0.2%. FlyArystan absorbs most of the production shortfall. None of these are structural. Each one is something we've either already actioned or expected to ease.

Speaker #1: It's a group-wide production and input cost issue, and it's the issue we are now managing directly. We have concluded cost negotiations with both Almaty and Astana airports.

Speaker #1: We have begun a zero-cost pay review across the business, which brings us to the EBITDA. Group EBITDA was $93.6 million in the quarter, down 3.7%. For the half, it was $142 million, down 10%.

Speaker #1: Three drivers, and I'll name them plainly: higher fuel and labor costs; the Tenge strengthening, which eroded our dollar-linked margins; and the Pratt & Whitney cost drag.

Speaker #1: Air Astana held EBITDA essentially flat in the quarter, down just 0.2%. FlyArystan absorbed most of the production shortfall. None of these are structural. Each one is something we've either already actioned or expect to ease.

Speaker #1: On margins, the honest picture: EBITDA margin down roughly 5 points at the group level. EBIT margin compressed further, close to break-even for the half.

Gonçalo Pires: On margins, the honest picture, EBITDA margin down roughly five points at the group level, EBIT margin compressed further close to breakeven for the half. I won't dress this up, cost growth outpaced revenue growth, and that's what took margins down. The drivers are cyclical, not permanent, and our midterm guidance of mid-high twenties EBITDA margin is unchanged. We believe margins will recover. This chart is the one I would ask you to remember. The rough CASK spread went negative in Q1, as you remember, and returned to positive in Q2 at $0.0044 now. As production normalizes and unit costs dilute back down, this spread will widen. Management's entire focus right now is on restoring production, because that's what drives the two lines back apart. Finally, the balance sheet, and this is our position of strength.

Speaker #1: I want to dress this up. Cost growth outpassed revenue growth, and that's what took margins down. But the drivers are cyclical, not permanent. And our mid-term guidance of mid-high 20s EBITDA margin is unchanged.

Speaker #1: We believe margins will recover. This chart is the one I would ask you to remember. The rough cut spread went negative in the first quarter, as you remember.

Speaker #1: And return to positive in the second quarter, at $0.44 now. As production normalizes and unit costs dilute back down, this spread will widen.

Speaker #1: Management's entire focus right now is on restoring production, because that's what drives the two lines back apart. Finally, the balance sheet—and this is our position of strength.

Speaker #1: Cash of $481 million, with a cash-to-sales ratio at 31%. Net debt to EBITDA stands at 2.1 times, comfortably within our sub-three guidance. Yes, leverage ticked up year-on-year on lower cash generation.

Gonçalo Pires: Cash of KZT 481 million, cash to sales at 31%. Net debt to EBITDA at 2.1 times, comfortably inside our sub three guidance. Yes, leverage ticked up year-on-year on lower cash generation and continued fleet investment. That's deliberate. We are investing through the cycle. The message to close on, we have the liquidity and the balance sheet flexibility to fund our growth and absorb near-term cost pressure while we bring it down. Revenues are strong. The cost recovery is underway and being addressed. The balance sheet gives us room to execute. Now with that, I'll end back to Ibrahim.

Speaker #1: And continued fleet investment—that's deliberate. We are investing through the cycle. So, the message to close on: we have the liquidity and the balance sheet flexibility to fund our growth.

Speaker #1: And absorb near-term cost pressure while we bring it down. Revenues are strong because recovery is underway and being addressed, and the balance sheet gives us room to execute.

Speaker #1: With that, I'll hand back to Ibrahim.

Speaker #2: Thank you very much, Gonçalo. And if I may, I would like to conclude with a few words about our investment case, and I'll look ahead to the remainder of the year.

Ibrahim Canliel: Thank you very much, Gonçalo. If I may, I would like to conclude with a few words about our investment case and outlook for the remainder of the year. Ahead of that, please remember that if you have any questions related to the presentation, feel free to submit those via the relevant link on your invitation, and we'll do our best to cover those shortly. Our investment case remains very solid, based on the five strengths that we strongly believe are supporting and underlying the strength of the business case forward. Our dual brands, Air Astana and FlyArystan, allow us to satisfy the complete spectrum of passenger demands and significantly to stimulate air travel. Increasing connectivity has been the basis of Air Astana's development since its inception and will continue to be. With clear focus, commitment, and professionalism, the team has delivered a great OTP performance.

Speaker #2: Ahead of that, please remember that if you have any questions related to the presentation, feel free to submit those via the relevant link on your invitation.

Speaker #2: And we'll do our best to recover and cover those shortly. Our investment case remains very solid, based on the five strengths that we strongly believe are supporting and underlying the strength of the business case going forward.

Speaker #2: Our dual brands, Air Astana and FlyArystan, allow us to satisfy the complete spectrum of passenger demands and significantly stimulate air travel. Increasing connectivity has been the basis of Air Astana's development since its inception, and will continue to be.

Speaker #2: With clear focus, commitment, and professionalism, the team has delivered a great OTP performance. Our customers recognize the change, as reflected in the Net Promoter Score.

Ibrahim Canliel: Our customers, they recognize the change as reflected in the Net Promoter Score. I once again would like to take this opportunity to thank my team for delivering these outstanding results. We are very clear on our priorities. Gonçalo and I, as well as the rest of the management team, are focused and committed delivering on them. Our biggest challenge was the constraint on growth. We finally see light at the end of the tunnel, closer than we've ever seen and earlier than expected. This will further support our ability to execute on the amazing mega markets around us. Also our ability to reallocate capacity with resilience and agility. The Gulf conflict was yet another test case for that model, it is a dynamic model and allows us to continually capture and respond to the emerging trends in our demand conditions.

Speaker #2: I would once again like to take this opportunity to thank my team for delivering these outstanding results. We are very clear on our priorities.

Speaker #2: Gonçalo and I, as well as the rest of the management team, are focused and committed to delivering on them. Our biggest challenge was the constraint on growth.

Speaker #2: We finally see light at the end of the tunnel—closer than we've ever seen and earlier than expected. This will further support our ability to execute on the amazing mega markets around us.

Speaker #2: Also, our ability to reallocate capacity with resilience and agility—the Gulf conflict was yet another test case for that model. But it is a dynamic model and allows us to continually capture and respond to the emerging trends in our demand conditions.

Speaker #2: We have often said that if there wasn't a major international airline based in Kazakhstan, you would set one up to benefit from the unique geographical location.

Ibrahim Canliel: We have often said that if there wasn't a major international airline based in Kazakhstan, you would set one up to benefit from the unique geographical location. Never has this been more pertinent than at this point in time. The growth of demand within our region, connecting to our region internationally and connecting Europe and Asia through Kazakhstan is enormous and has further expanded under the new normal. The demand response to our high double-digit growth in the neighboring markets, supported with our extended home markets across the region, are the strongest testament to the validity of that foundation. We are at the intersection of half of the global population. We are uniquely positioned to support that, a strategic advantage that no other competitor can either match or buy, that is the strongest ground of our exponentially growing ambitions and the reason for our excitement.

Speaker #2: Never has this been more pertinent than at this point in time. The growth of demand within our region, connecting to our region internationally and connecting Europe and Asia through Kazakhstan, is enormous.

Speaker #2: And has further expanded under the new normal. The demand response to our high double-digit growth in the neighboring markets, supported with our extended home market across the region, is the strongest testament to the validity of that foundation.

Speaker #2: We are at the intersection of half of the global population. We are uniquely positioned to support that—a strategic advantage that no other competitor can match or buy.

Speaker #2: And that is the strongest foundation of our exponentially growing ambitions and the reason for our excitement. We are only at the start of the road.

Ibrahim Canliel: We are only at the start of the road.

Speaker #1: Ibrahim and Gonçalo, thank you for your comments. Ladies and gentlemen, that concludes the presentation of the results for Q2 2026. We do now have some time left for Q&A.

Simon Wray: Ibrahim and Gonçalo, thank you for your comments. Ladies and gentlemen, that concludes the presentation of the results for Q2 2026. We do now have some time left for Q&A. Please feel free to submit any questions you may have via the link on your invitation, we'll do our best to answer them. Thank you to those who have submitted questions already. If we're unable to cover your question today or you have any further requests, please feel free to get in touch. I'll now hand over to our moderator for first question. Thank you.

Speaker #1: Please feel free to submit any questions you may have via the link on your invitation, and we'll do our best to answer them. Thank you to those who have already submitted questions.

Speaker #1: If we're unable to cover your question today or if you have any further requests, please feel free to get in touch. I'll now hand over to our moderator for the first question.

Speaker #1: Thank you.

Speaker #3: Thank you very much for the presentation. We will now begin the Q&A session. Please send us your questions in writing using the Ask a Question tab on the webcast page.

Operator: Thank you very much for the presentation. We'll now begin the Q&A session. Please send us your questions in writing using the Ask a Question tab on the webcast page. Our first question reads: This feels like a big change in the process on your engine issues. What can you say about the impact on capacity and profitability outlook?

Speaker #3: Our first question reads: This feels like a big change in the process on your engine issues. What can you say about the impact on capacity and profitability outlook?

Speaker #2: Thanks, I'll share the question with Gonçalo. It has both an impact on the ability to expand capacity, but also to dilute the cost and widen the gap between RASC and CASC.

Ibrahim Canliel: Thanks. I'll share that question with Gonçalo, as it has both an impact on the ability to expand capacity, but also to dilute the costs and widen the gap between the RASK and the CASK. We stated that the key turnaround that we've seen in this particular quarter is with Pratt & Whitney. We are very pleased that the number of inductions have increased. We are aspiring and demanding for more. With the number of inductions increasing, we have not only reduced the number of groundings this year, which help us addressing new markets, particularly China, India, but also in the rest of Asia and the region. We also have a much stronger outlook for the remainder of the year, and particularly for summer 2027.

Speaker #2: We stated that the key turnaround we've seen in this particular quarter is with Pratt & Whitney. We are very pleased that the number of inductions has increased.

Speaker #2: We are aspiring and demanding more. And with the number of inductions increasing, we have not only reduced the number of groundings this year—which helps us address new markets, particularly China and India, but also the rest of Asia and the region.

Speaker #2: We also have a much stronger outlook for the remainder of the year, and particularly for summer 2027. It's the first time in many years that we are looking at a scenario where we aim for zero groundings, which is a strong indicator of where we expect capacity growth to go.

Ibrahim Canliel: It's the first time in many years that we are looking at a scenario where we aim for zero groundings, which is a strong indicator of where we expect the capacity growth to go, and also the impact on our ability to reduce the unit cost that has been a pain point in the first two quarters of this year.

Speaker #2: And also the impact on our ability to reduce the unit cost, which has been a pain point in the first two quarters of this year.

Speaker #1: Thank you very much for the answer to the question. Of course, we do not—or cannot—have clear guidance on what we will generate in terms of revenue, profits, or margins next year.

Gonçalo Pires: The answer to the question, of course, we do not or cannot have a clear guidance on what we will generate in terms of revenue, profits, or margins next year. I think it's easy to understand that an airline is not made to have aircraft on the ground. The clear priority of the management that's stated in this presentation is precisely that, to have our aircraft flying, which for the first time in some time, the airline will be able to do in the peak season, in the most important season for our ability to generate profits in next year, which will be the summer of 2027. Our assets are fairly expensive, so you should be able to monetize them.

Speaker #1: But I think it's easy to understand that an airline is not made to have aircraft on the ground. So, the clear priority of the management, as stated in this presentation, is precisely that—to have our aircraft flying. For the first time in some time, the airline will be able to do this during the peak season, which is the most important season for our ability to generate profits next year, and that will be the summer of 2027.

Speaker #1: Our assets are fairly expensive, so you should be able to monetize them. And as long as we have a percentage, even in our structure of fixed costs—which go roughly to 40% of our cost structure—that’s our ability to dilute them and be able to increase the margins.

Gonçalo Pires: As long as we have a percentage, even in our structure of fixed costs, which go roughly on 40% of our cost structure, that's our ability to dilute them and be able to increase the margins.

Speaker #3: Thank you. Our next question reads: As of June 30th, the group had no outstanding fuel hedges. Yet, average fuel prices at international stations rose 98% year on year.

Operator: Thank you. Our next question reads: As of 30 June, the group had no outstanding fuel hedges, yet average fuel prices at international stations rose 98% year on year, the entire growth strategy is built on expanding international flying. That pushes a growing share of uplift into the most volatile and now unhedged segment. What's the hedging plan for H2 2026 and 2027? What drove the decision to unwind hedges right at the start of this price cycle?

Speaker #3: And the entire growth strategy is built on expanding international flying. That pushes a growing share of uplift into the most volatile, and now unhedged, segment.

Speaker #3: What is the hedging plan for H2 2026 and 2027? And what drove the decision to unwind hedges right at the start of this price cycle?

Gonçalo Pires: There was no unwinding, but just positions that were built at the beginning of the year and that matured at the end of H1. It was a conscious decision by the company not to hedge jet fuel at levels that we considered very high and affected by a crisis that eventually will fade. Hedging jet fuel at 1,500 or 1,400 would be basically monetizing a crisis, which we believe will deliver a solution soon for which we will have the opportunity to hedge at lower prices. Not hedging is a way of managing the cost. I remind you that the company has a structural edge by having more than 70% of our jet fuel consumption at prices that are not affected by the crisis. We do not consider ourselves exposed necessarily or as exposed as other companies to this crisis.

Speaker #1: So there was no unwinding, but just positions that were built at the beginning of the year and matured at the end of the first half.

Speaker #1: It was a conscious decision by the company not to hedge jet fuel at levels that we considered very high and affected by a crisis that eventually will fade.

Speaker #1: Hedging jet fuel at $1,500 or $1,400 would be basically monetizing a crisis, which we believe will be resolved soon. We expect to have the opportunity to hedge at lower prices.

Speaker #1: So that's not hedging as a way of managing the cost. I remind you that the company has a structural edge by having more than 70% of our jet fuel consumption at prices that are not affected by the crisis.

Speaker #1: So, we do not consider ourselves exposed necessarily, or as exposed as other companies to this crisis. Also, when we fly international, we uplift domestic.

Gonçalo Pires: Also, when we fly international, we uplift domestic. In some cases, we can actually tanker on our way back into a domestic uplift structure. Our way to manage the jet fuel cost is exactly to maximize the level of uplift consumption that we can have with domestic prices, which for Q2, reached 80% levels.

Speaker #1: In some cases, we can actually tackle on our way back into a domestic uplift structure. So our way to manage the jet fuel cost is exactly to maximize the level of uplift consumption that we can have with domestic prices, which for the second quarter reached 80% levels.

Speaker #3: Thank you. NetSat EBITDA has risen to 2.1 times from 1.3 times. Operating cash flow is down nearly by half, and cash to sales is near the lower end of guidance.

Operator: Thank you. net debt to EBITDA has risen to 2.1 times from 1.3 times. Operating cash flow is down nearly by half, and cash to sales is near the lower end of guidance. How does continuing dividends and buybacks fit with deleveraging and the upcoming fleet CapEx cycle?

Speaker #3: How does continuing dividends and buybacks fit with deleveraging and the upcoming fleet CapEx cycle?

Gonçalo Pires: On the policy dividends, we do not have an announcement to make, given that that's a decision for the board at the end of the financial year. Regarding, of course, the cash flow generation and the balance sheet performance, that's a consequence of the results that we are now presenting with margins that have fallen since the same period last year. Of course, our inability to generate enough production to be able to dilute fixed costs. However, we have a very strong balance sheet. All our balance sheet indicators, including cash to sales and net debt to EBITDA, are within the guidance that we deliver. It's important for everyone to understand that we will continue to deliver on growth by investing in fleets, because we believe in our markets and in our ability to increase production with investments that we already made by reducing AOGs.

Speaker #1: Yeah. So on the policy dividends, we do not have an announcement to make given that that's a decision. For the bond at the end of the financial year, for the board at the end of the financial year, regarding, of course, the cash flow generation, and the balance sheet performance, that's a consequence of the results that we are now presenting with margins that have fallen since the same period last year.

Speaker #1: And of course, our inability to generate enough production to be able to dilute fixed costs. However, we have a very strong balance sheet. All our balance sheet indicators, including cash to sales and net debt to EBITDA, are within the guidance that we deliver.

Speaker #1: It's important for everyone to understand that we will continue to deliver on growth by investing in fleets, because we believe in our markets and in our ability to increase production with investments that we have already made. By reducing AOGs, we will increase cash flow generation and increase margins in the future.

Gonçalo Pires: We'll increase cash flow generation and increase margins in the future.

Speaker #3: Thank you. You mentioned the conclusion of negotiations with your domestic airports. Can you expand on the nature of those discussions and what it implies for infrastructure developments in Kazakhstan?

Operator: Thank you. You mentioned the conclusion of negotiations with your domestic airports. Can you expand on the nature of those discussions and what it implies for infrastructure development in Kazakhstan?

Gonçalo Pires: Thank you very much. The discussions with the key hub airports, Almaty and Astana, was one of our priorities to finalize in Q2 for two reasons. Firstly, to have clear visibility for ourselves for the coming years to understand the cost structure. Secondly, for the airports to have the same visibility in order to start investing into the infrastructure that is required to support our ambitious growth plans. I'm very pleased that those negotiations have resulted in the way that we had planned them. We have been stating for several years that any cost increase that we would see from the airports, we would want them to be in a variable manner that can be reflected as a variable cost to the actual end users, that is exactly the structure we have achieved.

Speaker #2: Thank you very much. The discussions with the key hub airports—Almaty and Astana—were one of our priorities to finalize in the second quarter.

Speaker #2: For two reasons. Firstly, to have clear visibility for ourselves for the coming years to understand the cost structure. And secondly, for the airports to have the same visibility in order to start investing in the infrastructure that is required to support our ambitious growth plans.

Speaker #2: I'm very pleased that those negotiations have resulted in the way that we had planned them. We have been stating for several years that any cost increase we would see from the airports, we would want to be in a variable manner that can be reflected as a variable cost to the actual end users.

Speaker #2: And that is exactly the structure we have achieved. I once again want to repeat that it is great that we now have visibility for the next five years in our key airports.

Gonçalo Pires: I once again want to repeat that this is great that we have now visibility for the next five years in our key airports, and also that the airports have visibility of their revenue streams, and thereby will be able to invest and support the growth of the Air Astana Group.

Speaker #2: And also that the airports have visibility of their revenue streams, and thereby will be able to invest and support the growth of the Air Astana Group.

Speaker #3: Do you have plans to start flying over Russian territory to fully utilize the geographical position?

Operator: Do you have plans to start flying over the Russian territory to fully utilize the geographical position?

Gonçalo Pires: At this stage, we are unable to do so for several reasons. It is an additional flight time and cost that we don't particularly like. It makes several of the routes into Europe and other places unprofitable because of that longer flight time and the higher cost. Today, the reasons that we are unable to fly range between the risk of having to divert and inability for us to deal with certain suppliers that are sanctioned entities, as well as security questions. If and when those factors are addressed, we would be delighted to fly via the shorter route that would take us into Europe in a much shorter flight time. That is entirely dependent on those conditions maturing.

Speaker #2: At this stage, we are unable to do so for several reasons. It is additional flight time and cost that we don't particularly like.

Speaker #2: It makes several of the routes into Europe and other places unprofitable because of that longer flight time and the higher cost. However, today the reasons that we are unable to fly range between the risk of having to divert and the inability for us to deal with certain suppliers that are sanctioned entities.

Speaker #2: As well as security questions. If and when those factors are addressed, we would be delighted to fly via the shorter route that would take us into Europe in a much shorter flight time.

Speaker #2: But that is entirely dependent on those conditions maturing.

Operator: How sustainable is the recent RASK improvement as capacity growth resumes? Which factors, pricing, route mix, international connectivity, or ancillary revenues should support yields as additional RASK returns?

Speaker #3: How sustainable is the recent risk improvement as capacity growth resumes? And which factors—pricing, route mix, international connectivity, or ancillary revenues—should support yields as additional ASK returns?

Ibrahim Canliel: I would like to refer to the breakdowns that we provided in both my and Gonçalo's sections in the presentation. There we highlighted that the entire growth of the revenue has come from the revenue per ASK. While the total ASK is flat, we have to remember that we had to reallocate 15% of the international capacity that was allocated to the Gulf. That has resulted in high double digits ASK growth in some of our very key markets. Despite that, the revenue per ASK, the blended RASK, has grown by 11% across the international network, or 16% excluding the RASK to the Middle East. With that type of growth and ability to combine that with revenue per ASK, we are confident that the current strong performance is a good reflection of what we will be achieving in the future going forward.

Speaker #2: I would like to refer to the breakdowns that we provided in both my and Gonzalo's sections in the presentation. There, we highlighted that—I mean, the entire growth of the revenue has come from the revenue per ASK.

Speaker #2: However, while the total ASK is flat, we have to remember that we had to reallocate 15% of the international capacity that was allocated to the Gulf.

Speaker #2: That has resulted in high double-digit ASK growth in some of our very key markets. And despite that, the revenue per ASK, the blended RASK, has grown by 11% across the international network, or 16% excluding RASK to the Middle East.

Speaker #2: So with that type of growth, and the ability to combine that with revenue per ASK, we are confident that the current strong performance is a good reflection of what we will be achieving in the future going forward.

Speaker #3: Thank you. This next question has two parts. The first part is: What do you think the midterm growth rate could be for the international markets, looking beyond this year of exceptional growth driven by reallocation from domestic and Middle East?

Operator: Thank you. This next question has two parts. First part is, what do you think the midterm growth rate could be for the international markets looking beyond this year of exceptional growth driven by reallocation from domestic and Middle East? The second part is, can you give some color on how you expect CASK ex-fuel to develop as groundings trend down to zero by summer peak 2027?

Speaker #3: The second part is, can you give some color on how you expect cast X fuel to develop as groundings trend down to zero by summer peak 2027?

Ibrahim Canliel: I would say that this quarter has been a real eye-opener to us for the wrong reasons. We have accelerated growth into markets that we were planning to grow several years from now, and the outcome has been terrific. We see that across Asia, across Central Asia and Caucasus, that the capacity has been absorbed very quickly. The unit revenues have continued to rise. The unit revenue increase has been not isolated to one brand or the other. It has been across both brands into the higher double digits. It is also high between the domestic and international. That is a picture that I would describe as extremely healthy.

Speaker #2: I would say that this quarter has been a real eye-opener for us. For the wrong reasons, we have accelerated growth into markets that we were planning to enter several years from now.

Speaker #2: And the outcome has been terrific. We see that across Asia, across Central Asia and the Caucasus, the capacity has been absorbed very quickly. The unit revenues have continued to rise.

Speaker #2: And the unit revenue increase has not been isolated to one brand or the other; it has been across both brands, into the higher double digits.

Speaker #2: And it is also high between the domestic and international. So that is a picture that I would describe as extremely healthy. The markets that we have entered into—they have once again shown to us that we are able to stimulate markets and demand.

Ibrahim Canliel: The markets that we have entered into, they have once again shown to us that we are able to stimulate markets and demand, especially when we go into new destinations where the population is high, the conditions are ready for traffic stimulation, including the visa-free regimes that is applied by Kazakhstan, but also in some cases by the other countries as well, and are able to deliver results even stronger than we expected. With that, we have an increased confidence on the ambitious expansion targets that we have as the company, as the group, across both Air Astana and FlyArystan. I'll leave Gonçalo to comment on the second part of the question.

Speaker #2: Especially when we go into new destinations where the population is high, the conditions are ready for traffic stimulation, including the visa-free regimes that are applied by Kazakhstan, but also, in some cases, by other countries as well.

Speaker #2: And are able to deliver results even stronger than we expected. So with that, we are we have an increased confidence on the ambitious expansion targets that we have as the company, as the group, across both Air Astana and Fly Air Astana.

Speaker #2: And I'll leave Gonzalo to comment on the second part of the question.

Speaker #1: Thank you, Graham, for the question. So, we do not give guidance in terms of CASM ex-fuel for 2027, but I would like to leave you here with some ideas.

Gonçalo Pires: Thank you, Graham, for the question. We do not give guidance in terms of CASK ex-fuel for 2027. I would like to leave here with some ideas. First, this narrative of increased production to reduce these costs should have and will have an impact on our CASK ex-fuel. Also, the way that we will be able to increase productivity on some of the lines as we now build the budget for next year will also give us an indication of our ability to be more competitive on the CASK side. It's not a matter of if, it's our management priority to drive down the CASK and especially the CASK ex-fuel, as this is the best indicator of our abilities to generate better margins.

Speaker #1: First, this narrative of increased production to dilute fleece costs should have, and will have, an impact on our CAS x fuel. Also, the way that we will be able to increase some of the lines as we now build the budget for next year will also give us an indication of our ability to be more competitive on the CAS side.

Speaker #1: So it's not a matter of if; it's a management priority to drive down the CASK, and especially the CASK ex-fuel, as this is the best indicator of our ability to generate better margins.

Speaker #3: Thank you. Our final question comes from Jacob—sorry, excuse me, Jacob Cattenell at Wood. Hi, thanks for the presentation. Can you walk us through the specific drivers behind: one, engineering and maintenance expenses; two, the passenger services; and three, wage costs?

Operator: Thank you. Our final question comes from Jakub Kaminski at Wood. Hi, thanks for the presentation. Can you walk us through the specific drivers behind the, one, engineering and maintenance expenses, two, the passenger services, and three, wage costs? Can you update us on the capacity of Almaty and Astana airports? How busy are they this summer so far? Remind us about the upcoming expansion plans of each. Can you remind us when should we expect to start to see the PDP outflows?

Speaker #3: Can you update us on the capacity of Almaty and Astana—excuse me, Astana—airports? How busy are they this summer so far? And remind us about the upcoming expansion plans for each?

Speaker #3: Can you remind us, when should we expect to start seeing the PDP outflows?

Gonçalo Pires: Okay. Talking, Jakub, about the first line, you mentioned precisely three lines that are affected by our tenge exposure. As you know, the currency has appreciated significantly, especially when you compare it to a similar period of last year, is now trading this morning at 470 against the dollar, which compares to the north of the 520 that we saw in the same period last year. That is relevant for the way we also look at these lines. On engineering and maintenance, I also highlight that we are affected by the Pratt & PW issue, not just because we have to invest in resources, either in assets or even in people, to work on a higher base of assets that we are enabled to monetize.

Speaker #1: Okay. So, talking to Jakub about the first line, you mentioned precisely three lines that are affected by our tenge exposure. As you know, the currency has appreciated significantly.

Speaker #1: Especially when you compare it to a similar period last year, it is now trading this morning at 470 against the dollar, which compares to north of 520.

Speaker #1: That we saw in the same period last year. That's relevant for the way we also look at these lines. On engineering and maintenance, I also highlight that we are affected by the price and WPW issue.

Speaker #1: Not just because we have to invest in resources, either in assets or even in people, to work on a higher base of assets that we are unable to monetize.

Speaker #1: Also, it's important that we know that we are addressing this and other issues precisely with our partner, Pratt & Whitney. Not just to revise the production levels to more inductions, but also on the commercial terms.

Gonçalo Pires: It is important to know that we are addressing these and other issues precisely with our partner, Pratt & Whitney, to not just revise the production levels through more inductions, but also on the commercial terms that we expect to be reviewed, given the economics that the company is facing right now. I will take the additional part of the question on Almaty and Astana airports. I think we can state that we hear from Almaty Airport themselves that the type of growth that they are seeing is higher than what they anticipated when they did their business case starting for the construction of the new terminal. That is why it was extremely important for us to have a deal that, first of all, provides us, as the Air Astana Group, visibility of our costs, and to be able to pass it on to the users.

Speaker #1: That we expect to be reviewed, given the economics that the company is facing right now.

Ibrahim Canliel: I will take the additional part of the question on Almaty and Astana airports. I think we can state that we hear from Almaty Airport themselves that the type of growth that they are seeing is higher than what they anticipated when they did their business case starting for the construction of the new terminal. That is why it was extremely important for us to have a deal that, first of all, provides us, as the Air Astana Group, visibility of our costs, and to be able to pass it on to the users.

Speaker #2: I'll take the additional part of the question on Almaty and Astana airports. I think we can state that we hear from Almaty Airport themselves that the type of growth they are seeing is higher than what they anticipated when they did their business case, starting for the construction of the new terminal.

Speaker #2: And that is why it was extremely important for us to have a deal that, first of all, provides us, as the Air Astana Group, visibility of our costs.

Speaker #2: And to be able to pass it on to the users, but also to ensure that our key partner, as the airport at our main hub, has visibility of their revenue streams and therefore their ability to reallocate that into new investments.

Gonçalo Pires: Also to ensure that our key partner as the airport at our main hub has visibility of their revenue streams, and therefore their ability to reallocate that into new investments. We are in regular communications with them in terms of the future investments that are required in order to increase the capacity of the airport. We can state that they also have a clear plan going forward for ongoing expansion of their capacity, not just the terminal, but in other areas as well. It is perhaps for a long time, we feel that we have a good partnership in place. We are talking with people who understand the business model well and are equally committed to growing Kazakhstan as the hub of Central Asia, as well as for Eurasia and beyond. A very quick note on the last part of the PDP outflows.

Ibrahim Canliel: Also to ensure that our key partner as the airport at our main hub has visibility of their revenue streams, and therefore their ability to reallocate that into new investments. We are in regular communications with them in terms of the future investments that are required in order to increase the capacity of the airport. We can state that they also have a clear plan going forward for ongoing expansion of their capacity, not just the terminal, but in other areas as well. It is perhaps for a long time, we feel that we have a good partnership in place. We are talking with people who understand the business model well and are equally committed to growing Kazakhstan as the hub of Central Asia, as well as for Eurasia and beyond. A very quick note on the last part of the PDP outflows.

Speaker #2: We are in regular communication with them regarding the future investments that are required in order to increase the capacity of the airport.

Speaker #2: We can state that they also have a clear plan going forward for ongoing expansion of their capacity, not just the terminal, but in other areas as well.

Speaker #2: And perhaps for a long time, we have felt that we have a good partnership in place. We are talking with people who understand the business model well.

Speaker #2: And we are equally committed to growing Kazakhstan as the hub of Central Asia, as well as for Eurasia and beyond. And, a very quick note on the last part of the PDP outflows: we had shared when we announced the deals that these are, there is a small amount of front load of PDPs.

Gonçalo Pires: We had shared when we announced the deals that there are a small amount of front load of PDPs, while the bigger amounts are closer towards the delivery of the aircraft that are starting in 2031 and 2032 for Airbus and Boeing, respectively. With that, I think that was the last question that we had for today. I would like to thank everybody for giving your time today. We have quite a number of exciting news to share today. Thanks for giving us that opportunity. We talked about the inflection points, the turnaround of the Pratt & Whitney discussions, our ability to reallocate capacity, and at the same time, increase our unit revenues, and a very clear focus on the key challenges that we have, which are either resolved or on the way of execution, being addressed by the entire management team across the Air Astana Group.

Ibrahim Canliel: We had shared when we announced the deals that there are a small amount of front load of PDPs, while the bigger amounts are closer towards the delivery of the aircraft that are starting in 2031 and 2032 for Airbus and Boeing, respectively. With that, I think that was the last question that we had for today. I would like to thank everybody for giving your time today. We have quite a number of exciting news to share today. Thanks for giving us that opportunity. We talked about the inflection points, the turnaround of the Pratt & Whitney discussions, our ability to reallocate capacity, and at the same time, increase our unit revenues, and a very clear focus on the key challenges that we have, which are either resolved or on the way of execution, being addressed by the entire management team across the Air Astana Group.

Speaker #2: While the larger amounts are closer towards the delivery of the aircraft, which are starting in 2031 and 2032 for Airbus and Boeing, respectively. With that, I think that was the last question that we had for today.

Speaker #2: I would like to thank everybody for giving your time today. We have quite a number of exciting news items to share today. Thanks for giving us that opportunity.

Speaker #2: We talked about the inflection points, the turnaround of the Pratt & Whitney discussions, our ability to reallocate capacity and, at the same time, increase our unit revenues, and a very clear focus on the key challenges that we have, which are either resolved or in the process of being addressed by the entire management team across the Air Astana Group.

Operator: Thank you very much. This concludes today's call.

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Q2 2026 Air Astana JSC Earnings Call

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