Nas Air Faces Losses Due to Fuel Costs
Saudi Arabian airline Airlines faced a quarterly loss of 241 million riyals due to rising fuel, rental, and maintenance costs, along with decreased demand resulting from regional conflicts that halted some Gulf and regional routes. Despite revenues increasing to 2.21 billion riyals, supported by higher ticket prices and the Hajj season, the rising cost per available seat to 34.5 halalas per kilometer, compared to a revenue of 29.9 halalas, led to a loss of 4.6 halalas per kilometer per unit, marking the first such loss since the company's listing on the Saudi market. Additionally, an 86% increase in fuel expenses to 838 million riyals was a major cost factor. The company still maintains strong liquidity of 3.8 billion riyals, enabling it to face these challenges. The company faces three main challenges to improve future profits: reducing fuel costs, restoring suspended routes, and increasing seat occupancy.
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