Nepal Airlines loss in fiscal year 2022/23

KATHMANDU, May 26:The Nepal Airlines Corporation (NAC) have been operating at a loss for a couple of years or more. This has been stated in an annual review report of the status of public enterprises presented in the parliament on Sunday. 

The review report shows that of 44 public enterprises that were in existence till the fiscal year 2079-80 BS (2022-23), 26 were at a profit, 15 were at a loss, and the business transactions of three organizations were nil. 

According to the report, in the fiscal year 2079-80 BS (2022-23), the NAC incurred the highest loss among all public enterprises, 

During the last fiscal year, NAC's net loss amounted to over Rs 650 million while the accumulated loss of the corporation exceeded Rs 16 billion. The NAC has been continuously operating at a loss since the fiscal year 2076/77 (2019-20).

"Although the net loss of NAC last fiscal year reduced compared to the fiscal year 2078/79 (2021-22), the financial status of the organization is not satisfactory," the report states. 

Challenges in the payment of loans and interests, high administrative expenditures, low business, delayed flights, and the lack of the effective implementation of a corporate plan are cited as reasons behind the NAC facing continued loss.