The impacts of lengthy grounding of aircraft due to management incompetence have been reflected in the balance sheet of Nepal Airlines Corporation (NAC). The revenue of the national flag carrier fell by 23.58 percent to Rs 6.09bn in the first six months of fiscal year 2024/25. According to the NAC, revenue fell by Rs 1.87bn from Rs 7.97bn in the same quarter of the previous fiscal year. International passenger numbers also fell by over 49,000 during the period.

NAC’s sole source of revenue is from international flight passengers and cargo services. Its operation in domestic sectors was negligible in the review period. The NAC last month halted its domestic operations after its sole Twin Otter had to be grounded due to technical reasons. Its other Twin Otter has been grounded for years due to the inability of the management to repair it.

Over the first six months of 2024/25, NAC flew 253,000 international passengers. The international passenger number was down compared to the same period of the previous fiscal year when the NAC handled 302,000 passengers. A monthly breakdown of revenue shows, the national flag carrier earned Rs 940m in mid-July to mid-August, Rs 680m in mid-August to mid-September, Rs 1.42bn in (mid-September to mid-October, Rs 1.45bn in mid-October to mid-November, Rs 1.73bn in mid-November to mid-December and Rs 1.3bn in mid-December to mid-January.

Average monthly revenue of the NAC has dropped to around Rs 1bn in the current fiscal year, compared to around Rs 1.5bn in the previous fiscal year, according to NAC officials. NAC’s flights were affected in the review quarter as its aircraft had to be grounded for a long time for scheduled C-checks or other repairs. Out of four aircraft for international operation, one double-aisle and one single-aisle aircraft had to go to Italy for scheduled C-checks during the review period, while the third aircraft remained grounded for nearly three months.

The grounding of aircraft during peak tourist and festive seasons led to decline in both revenue and passengers, according to NAC.