Buddha Air’s annual revenue crosses Rs 13 billion, pressure to add new aircraft as old aircraft arrive

Kathmandu. Buddha Air, a domestic air service company, has earned Rs 13.2 0 billion in the last fiscal year.

The company has established its dominance in domestic flights by maintaining a market share of about 60% in the domestic market. It has managed to earn the highest ever income in 81. Previous fiscal year 2079. It had earned a total income of Rs 12.16 billion in 2018.

According to rating agency ICRA Nepal, the increased aircraft and the increasing share of US dollar-based revenue from international tourists have helped boost Buddha Air’s revenue. The previous fiscal year 2080. From 12% in FY81 to FY 2081. In the first six months of 1982, u.S. dollar revenue surged to 15% of total revenue.

The reduction in fuel prices and the facility of input tax credit from VAT registration have also led to a major improvement in operating profit margins. fiscal year 2019. Operating profit margin has increased from about 10% in 80 to 18% in the last fiscal year and 22% in the first six months of the current fiscal year.

TAG_OPEN_div_24 There has been intense competition in the Nepali domestic aviation industry, leading to a drop in passenger load capacity from over 90% to 84-85% in recent years. The competition has also narrowed the gap between revenue per available seat kilometer and cost per available seat kilometer. Another major concern for the company is foreign exchange risk.