Quote from Alex bobby on June 21, 2025, 10:59 AM

Air Astana Battles Stock Dip Post-IPO With Global Growth and Green Tech Ambitions

Since its February 2024 IPO, Air Astana’s stock has slumped. CEO Peter Foster speaks to Euronews about the airline’s strategy to boost investor confidence, expand internationally, and lead sustainable aviation in Central Asia.

Kazakhstan’s national carrier, Air Astana, has long been a dominant force in Central Asian aviation. But since its high-profile initial public offering (IPO) in February 2024, the airline’s share price has dropped significantly, raising questions about market confidence and long-term investor returns.

In an exclusive interview with Euronews, CEO Peter Foster shed light on the company’s roadmap for restoring investor sentiment, growing international partnerships, and championing sustainability in an increasingly competitive and climate-conscious aviation landscape.

Performance vs Perception: Rebuilding Investor Confidence

While Air Astana’s market performance on paper may appear discouraging, Foster emphasises that the underlying fundamentals remain strong.

“The stock price has been a bit disappointing since the IPO… but the company has performed extremely well,” he explains.

Foster points to the airline’s record-breaking dividend payout as evidence of its solid financial health and profitability. According to him, this is one of the largest dividends in the airline industry today—a move intended to reassure shareholders and reflect Air Astana’s robust balance sheet and strong cash flow.

His focus remains on sound operational management. “Our job is to manage the airline with tight cost control, high service levels, and world-class safety standards,” says Foster. “We believe that, over time, stock prices will follow our operational success.”

Expanding Horizons: International Growth Is Key

For a country of only 20 million people, Kazakhstan’s domestic market alone cannot support Air Astana’s ambitious growth targets. The airline currently operates 62 aircraft, with plans to expand the fleet to 84 aircraft by the end of 2028.

“We absolutely need to leverage our proximity to some of the world’s largest markets,” Foster explains. “We are building partnerships to bring more international traffic through our network.”

Air Astana is actively forging strategic alliances with major global carriers, including:

• China Southern (ongoing discussions)
• Carriers in India (potential tie-ups)
• Japan Airlines (new codeshare agreement)
• Lufthansa and Turkish Airlines (existing commercial relationships)

These partnerships aim to transform Air Astana into a key regional connector, linking Central Asia with major hubs in Europe, the Gulf, East Asia, and South Asia. By tapping into passenger flows from larger, neighbouring markets, the airline hopes to boost revenue and brand recognition globally.

Navigating Aircraft Supply Challenges

A global shortage of fuel-efficient, next-generation aircraft is creating headaches across the aviation industry. Air Astana, despite its early commitment to modernising its fleet, is not immune.

Foster explains that many of the new engines introduced over the past decade use advanced NASA-inspired high bypass technology, which can yield fuel savings of up to 25% on long-haul flights—such as the 7.5-hour route from Astana to London. However, the reliability of these engines remains a challenge, reducing the expected performance gains.

“We’re not getting quite the efficiency or the sustainability readings that we had hoped for,” he says. “But those problems will resolve themselves with time.”

Still, the airline remains committed to modernising its fleet and anticipates greater fuel savings and emissions reductions once reliability issues are resolved.

Sustainability Strategy: From Greener Jets to Carbon Offsetting

As Kazakhstan aims for net-zero emissions, Air Astana is positioning itself as a sustainability leader in the region’s aviation sector.

A pioneer in adopting green technologies, the airline was the first to sign for the Airbus A321LR Neo at the Paris Air Show nearly a decade ago. These jets offer significant reductions in fuel burn and emissions compared to older aircraft.

“We will continue introducing these aircraft to meet our sustainability targets,” says Foster.

In addition to adopting newer, more efficient aircraft, the airline is also relying on carbon offsetting, particularly through CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation)—a UN-endorsed initiative that allows airlines to offset emissions they cannot yet eliminate.

Foster acknowledges that while tech innovation in aerodynamics and engine design will play a role in reducing emissions, carbon credits will remain essential for achieving near-term climate goals.

Conclusion: Staying the Course Through Market Volatility

Air Astana's journey from IPO excitement to stock market struggle is a reflection of the broader volatility facing aviation stocks globally. But with a sound operational base, a clear international growth strategy, and a sincere commitment to sustainability, the airline believes it is well-equipped to weather short-term challenges.

“We’ve managed this airline successfully for 20 years by focusing on cost, service, and safety,” Foster concludes. “If we continue down that path—and we are confident that we will—the market will recognise our value in time.”

As Air Astana prepares to release its half-year results, all eyes will be on whether these strategic moves can translate into a stock price recovery—and cement its place as a rising player in the global aviation scene.

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