Yeti Airlines Sees Revenue Recovery after Fleet Expansion

Yeti Airlines has reported significant revenue growth over the past two fiscal years, reversing declines caused by the fatal Pokhara crash in January 2023. The improvement follows a capital injection from new investors and the addition of two ATR 72 aircraft, according to credit rating agency ICRA Nepal (Infomerics).

The airline’s ATR 72-500 crash on January 15, 2023, claimed 72 lives and led to a sharp drop in revenue during FY 2022/23. Recovery began after Asian Life Insurance Company acquired a 46.82 percent stake in November 2023, becoming the largest shareholder. Chairman Lhakpa Sonam Sherpa holds 25.03 percent and Chanda Sherpa 20.06 percent. The strategic investment was part of a plan to convert Yeti into a public limited company, issue an IPO, and expand the fleet.

With the addition of two new ATR 72s, Yeti’s operational revenue reached Rs 4.25 billion in FY 2023/24, and Rs 4.11 billion in the first nine months of 2024/25. The airline’s domestic market share rose to 21 percent in FY 2023/24, up from 17 percent a year earlier.

Spokesperson Sudarshan Bartuala said the fleet expansion increased seat capacity and service frequency, directly boosting earnings. Prior to the addition, Yeti operated five ATR 72 aircraft. It now has seven, each with a 70-seat capacity. The airline’s earlier revenues were also hit hard in FY 2020/21 due to the COVID-19 pandemic.

Founded in 1998 with DHC6-300 Twin Otters, Yeti Airlines now focuses on ATR 72 operations for major domestic routes, while its sister company Tara Air, established in 2009, serves remote destinations. From its Kathmandu base, Yeti flies to Bhairahawa, Pokhara, Janakpur, Nepalgunj, Bhadrapur, and Biratnagar, and also operates Everest and Annapurna sightseeing flights. The company plans to expand destinations and flight frequency alongside its IPO launch, targeted for later this fiscal year.