Consistently agile.

Strategically resilient.

AIR ASTANA GROUP INTEGRATED REPORT 2025

Consistently agile.

Strategically resilient.

In a dynamic aviation market, success requires both the

agility to respond and the resilience to endure. Our ability

torespond swiftly to changing market conditions, backed

bystrong strategic foundations, enables us to strengthen

ourposition asCentral Asia’s leading airline group and

deliver consistent value for all stakeholders.

Our vision

To build one of the finest airlines in the world – connecting Kazakhstan and

the broader Central Asian region with major global markets while delivering

an efficient and reliable, high-quality service.

Our strategic pillars driving stakeholder value

Growth ExcellenceEfficiency

Read more on pages 2–3

Overview Other informationStrategic report Governance Financial statements

AIR ASTANA GROUP INTEGRATED REPORT 2025

About this report

Reporting scope and boundaries

The scope of this Integrated Report encompasses Air

Astana Group’s operations for the period from 1 January

to31 December 2025. Our reporting boundaries primarily

focus on activities directly managed and controlled by

AirAstana Group. While we strive for transparency and

accuracy in reporting, it’s important to note that certain

data may be subject to limitations, such as availability,

reliability and comparability. We have made reasonable

efforts to address these constraints and provide

meaningful insights.

Reporting standards and external assurance

This report has been prepared in accordance with GRI and

SASB standards. Indeveloping this report, Air Astana has

applied the GRIprinciples of accuracy, balance, clarity,

comparability, completeness, sustainability context,

timeliness and verifiability to guidethe selection,

measurement and presentation ofinformation. These

principles support the provision oftransparent, reliable

and comparable disclosures on the airlines’ economic,

environmental and social performance, enabling

stakeholders to better understand Air Astana’s

sustainability impacts and progress.

To provide assurance on the accuracy and reliability of

oursustainability-related information, we have engaged

PricewaterhouseCoopers Tax & Advisory LLP to conduct

limited assurance. The financial statements included in

this report have been audited by Ernst & Young LLP in

accordance with International Standards on Auditing (ISAs).

GRI 2-2; 2-3; 2-5

Contents

Overview

01 About this report

02 Consistently agile

03 Strategically resilient

04 At a glance

06 Investment case

Strategic Report

08 Chairman’s statement

10 Market overview

14 Business model

16 CEO’s statement

19 Q&A with Peter Foster and Ibrahim Canliel

21 Strategy

30 Key performance indicators

32 Operating review

36 Stakeholder engagement

39 Sustainability

71 Financial review

74 Risk management

Governance

83 Introduction to Corporate Governance

84 Board of Directors

88 Senior Management team

90 Corporate Governance report

100 Board committee reports

110 Responsibility statement

Financial statements

112 Statement of management’s responsibilities

113 Independent Auditor’s report

116 Consolidated statement of profit or loss

117 Consolidated statement of other

comprehensive income

118 Consolidated statement of financial position

119 Consolidated statement of changes in equity

120 Consolidated statement of cash flows

121 Notes to the consolidated financial statements

Other information

163 Supplementary ESG data

167 GRI content index

173 SASB index

174 Independent practitioner’s assurance report

177 Glossary

For more, please see our website

ir.airastana.com

We are committed to upholding the highest standards

ofreporting excellence and will continue to engage with

independent assurance providers to strengthen the trust

and confidence of our stakeholders in our disclosures.

Note: Throughout this Integrated Report, the terms

‘Company’ and ‘Air Astana’ refer to Air Astana JSC while

‘Group’ encompasses both Air Astana JSC and FlyArystan

JSC. Air Astana JSC is a sole shareholder of FlyArystan JSC.

Overview Other informationStrategic report Governance Financial statements

01AIR ASTANA GROUP INTEGRATED REPORT 2025

Consistently agile

We have a proven track record of

navigating industry cycles and external

headwinds with the agility to deliver

strong performance.

Agility in action

Dynamic capacity allocation to capture

growthopportunity

Both Air Astana and FlyArystan airlines manage their networks

proactively and allocate capacity to maximise yield, particularly

on Air Astana’s higher-margin international routes. In 2025, the

Group achieved 19.8% Available Seat Kilometres (ASK) growth

on international routes and 6.9% on domestic, making progress

on its strategy to improve connectivity within Kazakhstan

andacross its regional and international network. We recently

signed significant codeshare agreements with China Southern

Airlines and Air India, accelerating our expansion into nearby

megamarkets of China and India. These markets provide

exciting growth opportunities alongside the success of

ourexpanded network across the Gulf and Southeast Asia.

Read more on codeshare agreements on page 22

Proactive management during crisis

The majority of the Group’s fleet comprises Airbus A320

family aircraft, powered by Pratt & Whitney PW1100G

engines. In July 2023, Pratt & Whitney issued a product

recallof these engines due to contamination of powdered

metal, causing industry-wide disruption for global airlines.

AirAstana was the first mover to implement a mitigation

plan which focuses on dynamic capacity management

andaproactive engine resting programme to maximise

deployment during peak operational periods. The Group

alsotook decisive, early action to secure additional spare

engines, lease five additional A320 family aircraft and

hasperformed a total of 208 engine replacements

atitsin-house MRO facilities since January 2024.

Whileoperationally intensive, this has successfully

mitigatedthe impact on the Group.

Read more on proactive Pratt & Whitney mitigation on page 24

+14%

ASK growth in 2025

82.7%

Stable load factor

(2024: 83.5%)

Other informationStrategic report Governance Financial statements

02AIR ASTANA GROUP INTEGRATED REPORT 2025

Overview

Strategically resilient

Air Astana Group continues to commit

significant investment into in-house capabilities

with a view to driving more efficient and

higher quality operations. Availability of

in-house capabilities also ensures resilience

and ability to navigate industry shocks

without reliance on third parties.

Resilience in action

Significant investment driving operational

efficiencies

We continue to invest in the Technical Centre in Astana,

whichperformed 16 C-checks in 2025 (the 50th C-check since

the project began took place in February 2026). Plans for

theconstruction of new hangars in Almaty and Astana

areprogressing with designs in place and pre-build site

inspections underway. These would expand maintenance

capacity across the Group’s two main hubs, further reducing

costs and introducing the opportunity to provide scarce

andhigh-value heavy maintenance to external customers.

These investments are not just driving operational

efficiencies but also gradually turning traditional

costcentresinto profit centres, increasing our financial

resilienceand ability to withstand industry shocks.

Read more in Strategy in action on page 25

Cost leadership

The Group continues to maintain a compelling financial

profile. Our ongoing commitment to operational efficiencies

isdriving best-in-class Cost for Available Seat Kilemetres

(CASK) performance, which contributes to our attractive

profitability. As a result, we are able to maintain a healthy

financial position and demonstrate strong growth despite

thechallenging market environment.

Read more in Financial review on page 72

+11.4%

Revenue growth in 2025

+0.8%

EBITDAR stability

1, 2

1 Excluding revenue NRI (USD4.2m) in 2024.

2 Operating profit + Depreciation + Aircraft leases + Property lease of USD 1.1 million.

Other informationStrategic report Governance Financial statements

03AIR ASTANA GROUP INTEGRATED REPORT 2025

Overview

KAZ AKH S T A N

Sharm El Sheikh

London

Amsterdam

Frankfurt

Podgorica

Medina

Doha

Bahrain

Jeddah

Astana

Almaty

Tashkent

Shymkent

Kyzylorda

Dushanbe

Urumqi

Istanbul

Batumi

Kutaisi

Tbilisi

Baku

Osh

Dubai

Delhi

Goa

Male

Colombo

Bangkok

Phu Quoc

Phuket

Sanya

Beijing

Seoul

Bishkek

Issyk-Kul

Atyrau

Aktau

Uralsk

Aktobe

Astana

Almaty

Antalya

Gazipasha

Bodrum

Da Nang

Cam Ranh

Mumbai

Yining

Kyzylorda

Kostanay

Karaganda

ktobe

Atyrau

Shymkent

Turkistan

Aktau

Oskemen

Semey

Pavlodar

Uralsk

Kostanay

Karaganda

Guangzhou

AT A GLANCE

Strong

foundations

The Air Astana Group is the largest

airline group in Central Asia and the

Caucasus, operating 132 routes

across22countries.

Through its young and modern fleet of 62

aircraft, it

provides scheduled, point-to-point, transit, short-haul and

long-haul air travel and cargo on domestic, intra-regional

and international routes across Central Asia, the Caucasus,

Europe (including Turkey), the Middle East and Asia

(including India and China). Air Astana Group’s two

differentiated but complementary brands (Air Astana,

itsfull-service brand and Kazakhstan’s leading airline, and

FlyArystan, its low-cost carrier) allow it to target different

customer markets and geographies, providing choice

across a range of passenger needs and travel purposes.

5.2m

Passengers

Routes

4.5m

Passengers

Routes

Destinations

Skytrax World Airline

Awards ‘Best Airline

inCentral Asia & CIS’

(2011–2025)

Skytrax World Airline

Awards ‘Best Low-Cost

Airline in Central Asia

&CIS’ (2023–2025)

Two leading and visible airlines supported by Group-level capabilities:

Strategy and planning

Fleet procurement

Performance monitoring

Customer service

Training

Maintenance operations

1 As of 31 December 2025.

Other informationStrategic report Governance Financial statements

04AIR ASTANA GROUP INTEGRATED REPORT 2025

Overview

KAZ AKH S T A N

Sharm El Sheikh

London

Amsterdam

Frankfurt

Podgorica

Medina

Doha

Bahrain

Jeddah

Astana

Almaty

Tashkent

Shymkent

Kyzylorda

Dushanbe

Urumqi

Istanbul

Batumi

Kutaisi

Tbilisi

Baku

Osh

Dubai

Delhi

Goa

Male

Colombo

Bangkok

Phu Quoc

Phuket

Sanya

Beijing

Seoul

Bishkek

Issyk-Kul

Atyrau

Aktau

Uralsk

Aktobe

Astana

Almaty

Antalya

Gazipasha

Bodrum

Da Nang

Cam Ranh

Mumbai

Yining

Kyzylorda

Kostanay

Karaganda

ktobe

Atyrau

Shymkent

Turkistan

Aktau

Oskemen

Semey

Pavlodar

Uralsk

Kostanay

Karaganda

Guangzhou

KAZ AKH S T A N

Sharm El Sheikh

London

Amsterdam

Frankfurt

Podgorica

Medina

Doha

Bahrain

Jeddah

Astana

Almaty

Tashkent

Shymkent

Kyzylorda

Dushanbe

Urumqi

Istanbul

Batumi

Kutaisi

Tbilisi

Baku

Osh

Dubai

Delhi

Goa

Male

Colombo

Bangkok

Phu Quoc

Phuket

Sanya

Beijing

Seoul

Bishkek

Issyk-Kul

Atyrau

Aktau

Uralsk

Aktobe

Astana

Almaty

Antalya

Gazipasha

Bodrum

Da Nang

Cam Ranh

Mumbai

Yining

Kyzylorda

Kostanay

Karaganda

ktobe

Atyrau

Shymkent

Turkistan

Aktau

Oskemen

Semey

Pavlodar

Uralsk

Kostanay

Karaganda

Guangzhou

AT A GLANCE CONTINUED

Where we operate

GRI 2-1

132

Domestic and international

routes

Destinations

66%

Domestic market share

36%

International market share

Air Astana

FlyArystan

Air Astana/FlyArystan

1 Total departing seats from Kazakhstan to international

destinations (excl.Russia and Belarus).

Other informationStrategic report Governance Financial statements

05AIR ASTANA GROUP INTEGRATED REPORT 2025

Overview

INVESTMENT CASE

Delivering value

for shareholders

We have a proven track record of delivering

strong, consistent growth. Our efficient

operating model and robust financial position

enable us to continually invest in our brand

and proposition – an approach that has already

generated substantial returns. Looking ahead,

the market presents a significant opportunity

that underpins our ambitious growth plans.

KZT 9.92

Proposed dividend (per share) for 2025

Commitment to sustainability

Modern, fuel efficient fleet

Supporting local SAF production

Industry leading training programme

Women represent 53% of management positions

Financial resilience

Cost leadership CASK: 6.20 US cents

Robust balance sheet

Robust liquidity position: USD 512k average

tradedperday (September 2025-November 2025)

Strong management and governance

Experienced management team with 30 years average

experience in the industry

Five Independent NEDs on the Board of Directors

Operational efficiency

Young, fuel-efficient, Airbus fleet

Ability to dynamically allocate to most profitable routes

Advanced in-house Engineering, Training and Ground

Services capability. Unrivalled in Central Asia

70% of fuel uplift sourced domestically

A clear market leader

Strong position in the fastest-growing aviation market

inthe World (IATA)

66% market share in our home (Kazakhstan) market

where air travel penetration has tripled in 5 years

Uniquely positioned to connect India, China, Gulf

andEurope

Read more in Market overview on page 10 Read more in Financial review on page 71

Read more in Corporate governance on page 84

Read more in Sustainability on page 39

Read more in Strategy in action on page 24

Other informationStrategic report Governance Financial statements

06AIR ASTANA GROUP INTEGRATED REPORT 2025

Overview

Strategic report

08 Chairman’s statement

10 Market overview

14 Business model

16 CEO’s statement

19 Q&A with Peter Foster and Ibrahim Canliel

21 Strategy

30 Key performance indicators

32 Operating review

36 Stakeholder engagement

39 Sustainability

71 Financial review

74 Risk management

I am proud to have led the team that has

taken a post-start-up airline and created

the pre-eminent airline in the region

and a globally recognised brand.”

Peter Foster

CHIEF EXECUTIVE OFFICER

OF THE AIR ASTANA GROUP

(until 31 March 2026)

Overview Other informationGovernance Financial statements

07AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

CHAIRMAN’S STATEMENT

A culture of

excellence

During the year, we carried nearly 10 million passengers, an

increase of 7.9% over 2024 and achieved revenue growth of 11.4%

to USD 1,454 million. We signed two major codeshare agreements

with China Southern Airlines and Air India, a significant step for

our‘Going Global’ ambitions and push into these burgeoning

megamarkets. We expanded our network, boththrough the

addition of new destinations and increased frequency of flights.

Demonstrating resilience

However, as 2026 unfolds, we are facing a very different situation.

The current conflict in the Middle East has forced us to cancel all

flights into the region. Despite the ongoing uncertainty as at the

date of this report, the Group remains focused on adapting to

evolving external conditions, and I have no doubt, that we will

demonstrate our mettle in these uncertain times and continue

onour chosen trajectory as soon as the circumstances allow.

Engine defects affecting capacity

As you will read in detail elsewhere in this report, it is now three years

since Pratt & Whitney issued a product recall of PW1100G engines due

to contamination, with major implications for the Group since our

Airbus A320 fleet are powered by these engines. In recognition of this,

in March 2025, we reached an agreement for compensation with Pratt

& Whitney and are seeking further recompense for unscheduled

engine replacements caused by additional defective engines.

Fleet expansion plans

Already the leading airline group in Central Asia and the Caucasus

regions by revenue and fleet size, we have consolidated our

position through the two largest aircraft orders in the Group’s

history. The first set us on course for a major long-haul fleet

expansion with a new order for up to 15 Boeing 787-9 Dreamliners.

We have since topped this with an even larger order for up to

50Airbus A320neo family aircraft.

Efficiency an imperative to success

The expansion of our fleet, allied with the simplified fleet profile

wenow hold – operating with just two aircraft types: the Airbus A320

family and Boeing 767 – brings its own efficiencies. We have one of

the youngest fleets within the global airline industry with an average

age of 6.4 years, vastly reducing maintenance requirements and

costs but also significantly lowering our CO

emissions with their

fuel-efficient engines. At the same time, we continue to invest in

ourinfrastructure and are keenly focused on advancing the Group’s

digital transformation across every aspect of the business.

Committed to excellence

Excellence is the byword on which the Air Astana Group has built

its reputation and captures the fundamental principle of how we

operate our business. This translates into award-winning customer

service – once again gaining international recognition from Skytrax,

APEX and our industry peers in 2025. It is demonstrated in our

day-to-day commitment to safety: with certification through IATA’s

Operational Safety Audits and an accident-free record of carrying

92 million passengers since 2002.

The Air Astana Group finished 2025 in a strong

position, having completed its second year as

alisted company on three stock exchanges

withaflourishing retail shareholder base.”

Nurlan Zhakupov

CHAIRMAN OF THE BOARD OF DIRECTORS

1 Excluding non-recurring revenue items (USD 4.2 million).

Overview Other informationGovernance Financial statements

08AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

CHAIRMAN’S STATEMENT CONTINUED

Our sustainable development trajectory looks to the future and,

in2025, we revised the net-zero commitment in our Low-Carbon

Development Programme from 2060 to 2050. This aligns with the

global aviation industry’s targets and has a verified decarbonisation

roadmap with clear near-term milestones.

Our people – our most valuable asset

As one of the major employers in Kazakhstan, we pride ourselves

on attracting and retaining some of the best talent, but we also

recognise that it is their dedication and loyalty thatunderpin our

continued success in providing best-in-class services. And I would,

therefore, like to take this opportunity to thank everyoneacross

the Group for the contribution they have played.

Changes to shareholdings and the Board

During 2025 and early 2026, BAE Systems, one of Air Astana’s

founding shareholders, completed its exit from the Company’s

share capital, selling 10.1% in December and its remaining 6.9%

inMarch. Following the December sale, Simon Wood resigned

from the Board as planned. We thank BAE Systems and Simon

fortheir longstanding contribution to the Company’s development

and welcome the increased free float. At the Extraordinary General

Meeting of Shareholders held in February 2026, Bakhytzhan Taubayev

was elected to the Board of Directors as a representative of Samruk-

Kazyna JSC, where he serves as Co-Managing Director for Strategy and

Asset Management.

In another change to the Board, Diyas Assanov, who was appointed

in May 2024, has now taken on the role of a Workforce Engagement

Designated Independent Non-Executive Director, with the remit

ofstrengthening the Board’s engagement with employees and

stakeholder groups.

A new leadership era

2026 heralds a change in leadership within the Group following

theannouncement of Peter Foster’s retirement from the position of

Chief Executive Officer of Air Astana from the end of March. He also

steps down from the Group Board of Directors, but we are delighted

that he will retain his connection as a Senior Advisor to the Board.

Peter has been at the helm since 2005, overseeing the development

of what was then a young and ambitious airline and turning it into

one which is now fully formed but still ambitious for the future.

Weare eternally grateful for his unstinting commitment to exceeding

expectations and I would like to formally thank him, both personally

and on behalf of the Board, his own management team and

colleagues – and ultimately our flying passengers – for his hard

workand belief in creating a world-class airline.

Ibrahim Canliel has been transitioning into the role of Chief Executive

Officer in recent months, having worked very closely with Peter over

the last seven years as Chief Financial Officer and formally assumed

the position of Chief Executive Officer of Air Astana JSC on 1 April

2026. He was also the driving force behind our successful IPO

process. During his 22-year tenure at Air Astana, Ibrahim has held

anumber of positions, gaining an in-depth knowledge of the

business, which will hold him in good stead. Ibrahim was joined,

inthe role of new Chief Financial Officer, by Gonçalo Pires.

Gonçalopreviously served as CFO of TAP Air Portugal, where he

has been involved with restructure and digitalisation initiatives.

Confidence in the future

So as we say our farewells to Peter and wish him well, he knows

that he leaves behind an ongoing legacy. My Board and I have

every confidence in the skills and experience that Ibrahim brings

to his new role. He has already proved his mettle – not only in his

staying power but in his work ethos and strategic problem solving.

We look forward to working closely with him and his new team as

Air Astana Group continues its upward trajectory as one of the

finest global airlines of the 21st century.

As a listed company, we would not be able to achieve our ambitions

without our shareholders. So I would also like to say a big thank you

to all of you for your support as you join us on this epic journey.

Nurlan Zhakupov

CHAIRMAN OF THE BOARD OF DIRECTORS

Stock exchange events

During the year, the Air Astana Group hosted two key investor

events: Issuer Day on 6 August at the Astana International

Exchange and its first Capital Markets Day at the London Stock

Exchange on 15 September. At both sessions, management

made presentations to institutional investors, analysts, and

representatives of leading banks about the Group’s successful

progress since IPO. These prompted the largest uptick in stock

trading on all listings since immediately after the IPO.

Enhanced Dividend Policy

Under the new Enhanced Dividend Policy, approved by the

Board of Directors in March 2025, dividend payments of 30% to

50% ofannual consolidated net income will be recommended.

Thiswas a change to the previous guidance of up to 20%

announced at the IPO but still subject to all the conditions

setout in the Dividend Policy on page 72 of this report.

For the financial year ended 31 December 2025, the Board

isrecommending a dividend of KZT 9.92 per one common

share(KZT 39.68 per GDR – equivalent to four shares).

This is subject to approval at the Annual General Meeting of

Shareholders, which will take place no later than 31May 2026

and will then be payable in mid-2026.

Overview Other informationGovernance Financial statements

09AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

MARKET OVERVIEW

Kazakhstan

Continuing to stimulate air travel in our home market

International

Located at the intersection of global megamarkets;

AirAstana is driving expansion of the Group’s

international route network

Central Asia & Caucasus

Our near-home markets, the most underserved

aviation region globally

Positioned to

capitalise on

significant growth

opportunities

The Air Astana Group, through its differentiated but complementary

brands – Air Astana and FlyArystan, boosted its market share by

providing connectivity throughout the COVID period and has built

on this to become today’s clear market leader, commanding

66%of the domestic market. While there are still distinct growth

opportunities across Kazakhstan, the Group is also keen to extend

its horizons beyond the country’s borders and the ability of its

citizens to travel visa-free to more than 70 countries

(increasing

year-on-year) is helping to drive up passenger numbers. It is

thelargest airline group and Air Astana is the only international

full-service airline within the Central Asia and Caucasus region.

TheGroup is also uniquely positioned to expand its wider

international network given its proximity to neighbouring

megamarkets.

Air Astana 19%

FlyArystan 10%

Others 71%

Air Astana 26%

FlyArystan 40%

Others 34%

Air Astana 30%

FlyArystan 6%

Others 64%

11.8m

Total seats

3.3m

Total seats

9.5m

Total seats

1 The number includes destinations offering visa-free entry andthose

providing an e-visa and/or visa on arrival for Kazakhstan citizens.

2 Total departing seats within Kazakhstan.

3 Total departing seats within the intra-Central Asia & Caucasus region.

4 Total departing seats from Kazakhstan to international destinations (excl. Russia

and Belarus).

Overview Other informationGovernance Financial statements

10AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

MARKET OVERVIEW CONTINUED

Long-term growth drivers

Underserved domestic market

Kazakhstan’s vast land mass covers 2.725 million km

with

itspopulation of more than 20 million people inhabiting

conurbations across the length and breadth of the country.

Travel by road and rail between destinations can take many

hours or even days. Against this backdrop, the expansion of

domestic, low-cost airline services is fuelling the rapid rise in

air passenger traffic, with some 10.5 million projected by

2028, upfrom 8.2 million in 2023 – representing 28% growth.

While air travel is increasingly becoming the preferred choice

for many passengers, the aviation market of Kazakhstan

remains substantially underserved, with air travel penetration

low relative to the country’s GDP per capita. Compared with

Malaysia, Turkey and Chile, which all have similar GDP per

capita levels, Kazakhstan’s total air travel penetration

remains considerably lower (0.8 compared with 1.7, 1.5

and1.4, respectively).

Based on Economist Intelligence Unit forecasts and

Kazakhstan’s strong economic growth (5.6% in the first half

of the most recent reporting period), the domestic market is

projected to at least triple by 2030 if travel propensity trends

translate into the levels seen in comparable economies.

The broader Central Asian region has attracted attention with

approximately 20 new airlines entering over the past two

years. However, although the wealthiest country in the

region, Kazakhstan still operates at comparatively low travel

penetration levels. The gap between current uptake and

social/cultural demand continues to present significant

growth opportunities within the domestic market.

Significant growth potential in the

CARECregion

Kazakhstan is a signatory to the Central Asia Regional Economic

Cooperation (CAREC) Program; one of 11 countries working with

development partners to capitalise on the region’s unique

geographical position to connect to the vast potential of global

markets. This creates strong real demand for more efficient

andreliable transport connections for both people and trade.

Central Asia and the Caucasus region represents the fastest-

growing air travel market in the world today and is predicted

to continue into 2026. According to IATA data, Central Asia

ledglobal aviation growth in 2024, with this momentum

continuing through the first nine months of 2025, when

theregion recorded 23% growth on international routes

compared with the same period in the prior year.

The region’s economic fundamentals support sustained aviation

expansion. Central Asia and the Caucasus boast a fast-growing

economy driven by abundant oil, gas and mineral resources, and

complemented by a rapidly developing service sector, including

tourism. The region is home to 95 million people, featuring

alarge, well-educated, youthful population and a rising

aspirationalmiddle class with increasing purchasing power.

Despite these favourable demographics and economic trends,

the region remains a highly underserved aviation market with

atraditionally low propensity to fly. While there has been

substantial growth in the past decade, the aviation market within

the Caucasus region presents significant opportunities for greater

intra-regional connectivity. Comparative figures, for example,

pinpoint the gap with 79% for Europe against only 8% for the

Central Asia and the Caucasus region. As incomes rise and

low-cost carriers expand accessibility, the potential for

sustained double-digit growth remains substantial, making

Central Asia and Caucasus region one of the most compelling

aviation markets globally.

Proximity to global megamarkets

Kazakhstan occupies a uniquely advantageous geographic

position at the crossroads of the world’s largest and

fastest-growing markets. Within a seven-hour flight radius

from Kazakhstan, airlines can reach nearly four billion people

– almost half the world’s population – including the

megamarkets of China, India, Europe and the Middle East.

Kazakhstan sits directly between major Asian emerging

economies and Europe, creating natural transit opportunities

that few other carriers can exploit as effectively.

Based on its intra-regional network and international route

structure, Air Astana is the leading provider of connectivity

from the region to these megamarkets. No other airline

offers comparable connectivity, combined with Air Astana’s

product quality and service standards. This positions the

Group as the preferred carrier for passengers travelling

between Kazakhstan and neighbouring countries to the

world’s major economic centres.

While Air Astana has already demonstrated strong growth

oninternational routes, significant expansion opportunities

remain. Connecting underserved regional passengers to

megamarkets represents a substantial growth driver for

thefuture and this international expansion is a cornerstone

of Air Astana’s strategic growth plans.

The Group has been systematically investing in these

megamarket opportunities, establishing codeshare

partnerships with leading carriers in both China and India to

deepen market penetration and offer seamless connectivity.

These partnerships enhance Air Astana’s competitive position

as the primary bridge between the region and the world’s

most dynamic economies.

Further details on international route development and strategic

partnerships can be found ion page 22

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MARKET OVERVIEW CONTINUED

Supply chain pressures

The industry continues to be adversely

impacted by supply chain challenges arising

from Original Equipment Manufacturers (OEM),

including Pratt & Whitney, and the impact of

the contaminated powdered metal problems

of PW1100G engines. Although Pratt & Whitney

has been delivering new engines unaffected

by powdered metal from production for the

past 27 months, the backlog of affected

engines requiring workshop remedial work

isnow expected to persist through to 2028.

Challenges within the aerospace supply chain

have impacted the airline industry throughout

2025, prompting Willie Walsh, IATA’s Director

General, to comment: “The new year’s

resolution for the manufacturing sector must

be to increase production to meet the needs

of their airline customers. The backlog of

more than 17,000 aircraft orders that we

reached in 2025 must be reduced in 2026”.

How we are responding

Air Astana implemented a mitigation plan at

an early stage focused on dynamic capacity

management and a proactive engine resting

programme to maximise deployment during

peak operational periods. The Group also took

decisive, early action to secure additional

spare engines, lease five additional A320

family aircraft and has performed a total of

208 engine swaps at its in-house MRO

facilities since January 2024. While

operationally intensive, this has successfully

mitigated the impact of the powdered metal

issue on the Group.

During the summer peak, the Group was

forced to make 14 Unscheduled Engine

Removals (UERs) due to Pratt & Whitney

engine design defects additional to the

powdered metal issue, bringing the year-to-

date number to 22. This compares to three

UERs in Q1 2025 and five in Q2 2025. The

nature of these UERs required engines to be

removed earlier than under the scheduled

removal plan, grounding up to 13 aircraft in

the peak season and reducing the capacity

that had been preserved for deployment

during that period.

There have, however, been some positive

developments: although the Group’s working

assumption for average off-wing time remains

18 months, mitigation of the Pratt & Whitney

engine issues is expected to accelerate ahead

of the peak season, supported by earlier

engine inductions in H12026, including a

number of shorter-duration ‘pit stop’ shop

visits. This will be further reinforced by the

addition of four more spare engines.

Our agile supply chain processes enabled

usto reroute major supplies in compliance

with UK, EU and US sanctions, ensuring

uninterrupted operations. Logistics teams

closely monitor internal processes, freight

forwarders, optimal routes and delivery

methods to maintain a lean and agile supply

chain, reducing overheads and improving

profitability.

Key challenges in the aviation market

Jet fuel prices

Fuel is one of the largest costs airlines face

and remains inherently volatile. While

average jet fuel prices declined by 9%

year-on-year in 2025, fuel still accounted for

24% of the Group’s total operating costs, and

the price increase seen in March following

unrest in the Gulf served as a reminder of the

market’s sensitivity to geopolitical disruption.

How we are responding

We take a different approach to managing

this significant cost than many in our industry.

We purchase some 70% of our fuel

domestically, negotiating with and sourcing

directly from local refineries. Other airlines

inKazakhstan and, indeed, the airports also

purchase in this way. However, our cost

differential comes from managing the

logistics, transportation and storage of fuel

ourselves, eliminating several intermediaries

between those points. Aswell as reducing

the impact of market fluctuations and

providing a more stable fuel price, this also

enables us to achieve a price point that is

roughly 20% lower than that paid at our

international stations.

1 Source: IATA

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MARKET OVERVIEW CONTINUED

Competition

Kazakhstan’s Open Skies programme has

been extended until 2027. Open-skies

agreements foster competition and flexibility

in international air travel by allowing airlines

from different countries the right to fly in and

out of each other’s airspace.

This has significantly increased flights to

Kazakhstan and Central Asia by the major

sixth-freedom airlines based in the Middle

East and in Turkey, filling the vacuum created

by the absence of Russian and Ukrainian

airlines. These sixth-freedom airlines offer

attractive prices to destinations situated to

the west of Kazakhstan.

How we are responding

This could be perceived as a challenge to

theGroup; however, the strongest growth in

demand has actually been for flights between

Kazakhstan and locations to the east and

south of the country. Including many leisure

destinations, there has been a significant

uptick in travel from Central Asia to the

Middle East, East and Southeast Asia,

particularly to the UAE, China, Egypt,

SaudiArabia, Qatar, Thailand and Vietnam.

Combined with our focus on operational

efficiency and low cost per ASK, this has

enabled the Group to deliver strong margins.

This places both our brands in a very

competitive position in the overall

marketplace when compared to that

ofitspeers.

Seasonality of demand

Aviation demand is highly seasonal, driven

byleisure travel, school breaks and major

holidays, leading to predictable peaks (summer,

December holidays) and troughs (winter off-

season), creating seasonal variability in airline

revenue, management, pricing

andoperations, althoughhybrid working

models are beginning to smooth some

traditional patterns.

At the same time, the Group’s quarterly

performance in 2025 remained broadly stable:

despite moderate fluctuations in passenger

volumes, the load factor stayed at a

consistently high level in the range of 81.5%

to 85.0%, reflecting resilient demand

throughout the year.

How we are responding

Our approach combines dynamic route

management with flexible deployment of

aircraft. Both airlines continue to proactively

manage their networks and allocate capacity

to maximise yield, particularly in favour of

higher-margin international routes on

AirAstana.

We have naturally responded to our customers

yearning for winter sunshine, with increased

services from both Almaty and Astana to

popular tourist destinations, including Male

inthe Maldives, Phu Quoc in Vietnam and to

Bangkok and Phuket in Thailand. There has

been growing interest in passengers travelling

from South Korea to Central Asia and Georgia.

While a number of new entrant airlines have

taken up these routes, they have reduced

capacity over the winter months. In contrast,

to meet the needs of this burgeoning group

of passengers, Air Astana has both increased

the frequency of flights from Almaty to Seoul

and upgraded its aircraft from narrow-body

A321LR to wide-body B767-300.

Air Astana further expanded its international

network for autumn 2025 with service

resumptions and increased frequencies across

the Gulf, where demand has recovered

strongly following the temporary disruption

caused by geopolitical events. In all, the Group

launched 25 new routes during the year to

improve connectivity within Kazakhstan and

across its regional and international network.

Key challenges in the aviation market continued

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Full-service airline

Low-cost airline

BUSINESS MODEL

GRI 2-6

Agile and resilient

RESOURCES AND INPUTS

Brand and reputation

With over 20 years’ experience and major

investment in both our reputation and brands,

Air Astana and FlyArystan, the Air Astana

Group has established positive brand

recognition. This translates into significant

commercial value and helps foster good

relationships with our stakeholders.

Financial resources

We have demonstrated operational and

financial resilience throughout COVID, the

Russia-Ukraine war, industry challenges

withPratt & Whitney engine issues, and

supply chain constraints. Through proactive

management and financial discipline, we

have built an efficient cost structure that

enables our airlines to outperform most

oftheir peers.

People and culture

Our focus on equal opportunities, training

anddevelopment helps retain and attract

new employees. Through our corporate

values and promotion of a culture of

recognition, we have created a positive work

environment for our 7,211 employees.

Modern fleet

The Group is now operating its simplest fleet

profile in more than 20 years after formally

redelivering the final Embraer E2 in September

2025. The fleet currently comprises just two

aircraft types – the modern, fuel-efficient Airbus

A320 family aircraft and Boeing 767 aircraft for

longer international routes flown by Air Astana

– with an average fleet age of 6.4 years at

theend of 2025. We benefit from reduced

maintenance costs, optimised fuel consumption

and reduced CO

emission levels, which position

us competitively among comparable

international networks and low-cost carriers.

Service excellence

We are known for outstanding excellence

incustomer service. In 2025, the Air Astana

airline was, for the fourteenth year running,

acknowledged as the Best Airline in Central

Asia& CIS in the Skytrax World Airline Awards,

and FlyArystan was awarded Best Low-Cost

Airline in Central Asia & CIS for the third time.

Partnerships

Our partnership strategy is to expand

co-operation through codeshare and interline

arrangements, to extend the reach of our airlines

and enrich our passenger offering through

reciprocal initiatives, such as loyalty programmes

and benefits, and enhanced airport services.

OUR PROVEN OPERATING MODEL

The Air Astana Group is the largest airline group in Central Asia and the Caucasus by revenue and

fleet size. We provide scheduled, point-to-point and transit, short-haul and long-haul air travel and

cargo ondomestic, intra-regional and international routes across Central Asia, the Caucasus, the Gulf,

Europe (including Turkey), the Middle East and Asia (including India and China). Targeting different

regions andcustomer markets, our two differentiated but complementary brands – Air Astana and

FlyArystan – together have a domestic market share of 66% and international market share of 36%.

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BUSINESS MODEL CONTINUED

WHAT SETS US APART

Low unit cost

Dual-brand strategy

Service quality recognition

Modern fuel-efficient fleet

Strategic geographic position

Market dominance in Central Asia

Consistent profitability

HOW WE DO IT

Consistent strategy to achieve our vision

Our ambition is for the Air Astana Group to establish a position as

one of the finest airline groups in the world. Our strategy to achieve

this is built on three key pillars:

Growth

Excellence

Efficiency

Positioned to capitalise on significant growth opportunities

Air Astana Group is the clear leader in its home market, well

positioned to capture untapped growth opportunities. Beyond

Kazakhstan’s borders, the Central Asia and Caucasus region remains

deeply underserved, presenting significant potential for connecting

one of the world’s fastest-growing aviation markets with the world’s

most populated countries. As the largest airline group in the region

by seat capacity, Air Astana is ideally placed to capitalise on these

strong growth opportunities and the Group’s location at the

intersection of major global markets – India, China, the Gulf,

andSaudi Arabia.

Strong financial discipline

With operational efficiency and excellence at its heart, we maintain

rigorous financial management, which is key to maintaining one

ofthe lowest unit-cost performances (measured by CASK) among

both of our airlines’ international competitors. This enables us to

compete effectively on air fares, stimulating market demand and

supporting growth in market share. Our strong balance sheet is a

source of confidence and provides assurance to weather any crisis.

DELIVERING VALUE FOR OUR…

…Shareholders

KZT 9.92

Dividend per share

proposedfor 2025

…Passengers

Air Astana

CSAT Rating

for 2025

FlyArystan

CSAT Rating

for 2025

Whether flying on our full-service

orlow-cost carrier, our passengers

receive the award-winning standards

ofhospitality, comfort and safety we

are renowned for.

…People

USD 5.4m

Investment in

trainingin2025

Our employees are central to the

Group’s success, and we reward their

loyalty and dedication by offering

competitive salary packages and

professional development, as well

asproviding for their well-being.

…Suppliers and partners

31%

Percentage of purchases

from local suppliers in 2025

Mutual respect for our suppliers and

business partners is key to developing

positive, long-term relationships, with

beneficial outcomes for all parties.

…Government, regulators and local authorities

USD 87.7m

Taxes paid in 2025

We create employment and support

thedevelopment of local social and

economic infrastructures in Kazakhstan,

while ensuring we meet all relevant

legislative and regulatory requirements.

Factors that determine our long-term growth

Market trends and

opportunities

Read more on page 83

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CEO’S STATEMENT

Looking to

newhorizons

2025 marks Air Astana Group’s second year as a

public company and my 20th year as CEO. Amid

industry-wide challenges, we have once again

shown resilience, significantly increasing our

passenger numbers to nearly 10 million.”

Peter Foster

CHIEF EXECUTIVE OFFICER

Revenue grew by 11.4% to USD 1,453.9 million and ASKs increased

by 14% to 22 billion. Wealso continued to earn international

commendations, reflectingthe strength of our customer service.

Resilience against the odds

The debacle with Pratt & Whitney continued into its third year

andwas among the challenges we faced in 2025. As previously

reported, there was a product recall for PW1100G engines due to

contamination of powdered metal, with ensuing disruption across

the global airline industry. This was also particularly galling for us

given that our fleet of mainly Airbus 320 aircraft is powered by

these engines. Decisive measures were taken immediately to

secure 13 spare engines and lease five additional A320 family

aircraft; this year, we have had to acquire another four engines.

However, despite the swift steps taken to mitigate groundings,

theknock-on effect – operationally and financially – has been

substantial. Since January 2024, our in-house MRO teams have

been forced to carry out 208 engine replacements to alleviate

theoverall impact on operations.

Despite proactive interventions, further engine defects forced22

unscheduled engine removals and reduced our capacity during the

summer peak in 2025. This negatively affected profitability and

increased unit costs at our busiest time, compressing the margin

between RASK and CASK throughout the year.

Other circumstances affected our performance over the period.

The Kazakh Tenge – the currency in which we earn a large amount

of our revenue – had a difficult year, before recovering in the final

quarter. Airport closures and the rerouting required due to conflict

in the Middle East also created additional disruption. Given the

evolving nature of the current situation, the duration and full

implications remain uncertain, and we will continue to monitor

developments closely, adjusting our operations as required.

World-class product offering

Despite external challenges, the Group continues to demonstrate

strong operational performance and reliability. In September 2025,

Air Astana successfully renewed its IATA Operational Safety Audit

(IOSA) certification for the tenth time; since January 2025, FlyArystan

has been operating under an independent AOC and IATA code and

completed its first full IATA IOSA certification in September 2025

with an accepted corrective action plan.

Our commitment to excellence is reflected in the Group’s service

recognition. At the Skytrax World Airline Awards 2025, Air Astana

was named ‘Best Airline in Central Asia & CIS’ for the fourteenth

consecutive year and received ‘Best Airline Staff Service in Central

Asia & CIS’ for the ninth time. FlyArystan was awarded ‘Best

Low-Cost Airline in Central Asia & CIS’ for the third consecutive

year. Air Astana also received a Five-Star rating from the Airline

Passenger Experience Association (APEX) in the ‘Major Airlines’

category for the sixth consecutive year.

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CEO’S STATEMENT CONTINUED

Driving operational efficiency

We have now completed our plans for fleet simplification and have

the most streamlined fleet profile we have had for more than

20years, comprising two aircraft types: the modern Airbus A320

family aircraft alongside Boeing 767 aircraft used for longer

international routes flown by Air Astana. Our Group fleet had

expanded to 62 by the end of 2025 with an average aircraft age

of6.4 years. With a young, fuel-efficient fleet, we benefit from

lowermaintenance costs, optimised fuel consumption and reduced

emissions. In addition, we are now deploying a comprehensive

set of fuel-efficiency and aircraft performance monitoring systems to

both improve operational efficiency and optimise fuel consumption.

Alongside this, we are making extensive investment in digital

transformation in order to integrate next-generation systems into

our day-to-day activities. We launched our AI Lab in early 2025

andare already seeing tangible progress with a rapidly expanding

pipeline of AI applications, pivotal to enhancing operational

performance, crew productivity and our customer experience.

On the ground, our longer-term infrastructure plans are taking

shape, including the expansion of our Technical Centre atAstana

and construction of new hangars in Almaty and Astana. These will

not only add to the maintenance capacity across the Group but will

further reduce costs, with the aim of also offering specialist and

high-value heavy maintenance to external customers.

Success founded on our people

The public, visible manifestation of the Group is encapsulated inour

brands, the net promoter score, the customer satisfaction ratings, the

reliability, on-time performance, our safety record, the partnerships,

our presence in global markets, and our international reputation.

Thisiswhat the outside world sees, but it is really justthe tip of

theiceberg, as this all happens because of the incredible collective

effort of the 7,211 people who work for theAir Astana Group.

This industry is fundamentally people-intensive and depends on

the professionalism of individuals across the business. Ultimately,

itis our people – across flight operations, engineering, ground

services and customer-facing teams – who deliver the standards

our passengers experience every day.

A changing market scenario

The Kazakh Government’s open skies policy and expanded visa

access have opened up the country, which we heartily support,

butthe liberalisation of the economy inevitably intensifies

competition. Kazakhstan has become an increasingly attractive

destination, and demand from international travellers continues to

rise. However, while this presents us with increased opportunities,

we also face challenges from the low-cost sector.

We are now facing a new reality: a more difficult and very

different market environment to that which we have experienced

during most of my tenure. Over the course of the last two years,

some 20 new airlines have entered the Kazakhstan market, most

of which are low-cost carriers. They are expanding their networks

into Kazakhstan and the wider region with a structurally lower cost

base, which increases competitive pressure. While the longer-term

sustainability of some entrants remains uncertain, in the near term

they are reshaping the competitive landscape.

Strategic global alliances

History has shown us the inevitable downside of going it alone;

that success comes from making alliances. In 2025, we added two

outstanding codeshare agreements to our portfolio. Firstly, with

Asia’s oldest airline, Air India, a very well-managed business which

operates a comprehensive network of flights to, from and across

India, the world’s most populous country and one of the fastest

growing travel markets. And, also, with China Southern Airlines,

the biggest airline in the world, with 968 aircraft.

These boost our existing codeshare agreements with Lufthansa,

Asiana and Turkish Airlines, cementing our ‘Going Global’ strategy

for the future, enabling us to take full advantage of our fantastic

global position and presence in these markets. And, by so doing,

we will enhance our position as the powerhouse airline of this

entire region.

Moving forward with confidence

Our strategy for growth over the next decade is predicated upon

widening our network from Central Asia and the Caucasus to Asia,

Europe and the rest of the world. Achieving this requires expanding

our long-haul capabilities allied with the overall modernisation of

our fleet. The arrival of the first Boeing 787-9 Dreamliner in 2026

marks the start of this – our next exciting phase of development.

And we have made our long-term intentions very clear with the

two largest orders in our history, with a value totalling up to

USD10billion. This will see the delivery of up to 15 Boeing 787-9

Dreamliners and 50 Airbus A320neo family aircraft from 2031

to2035, which willenable us to take our operations to yet

anotherlevel.

A smooth transition

By the time this report is published, I will have retired from my

role as Chief Executive Officer for the Air Astana Group. I would

therefore like to take this opportunity to thank our employees,

colleagues and friends for their support and loyalty over the last

20years. It has been a great honour and I’m looking forward to

remaining involved as Senior Advisor to the Board.

It is also a great honour to be handing over the leadership reins to

Ibrahim Canliel, who already has 22 years at Air Astana under his

belt and for the last seven of these as Group Chief Financial Officer,

integral to the success we have enjoyed, including masterminding

the whole IPO process. Gonçalo Pires will be joining him as his

new CFO; he has been the CFO of TAP Air Portugal for several years

and responsible for implementing its restructuring and digitalisation

initiatives. I have every confidence in the ability of Ibrahim, Gonçalo

and the management team to drive the next phase of development

for this business – the one that we have all envisioned and know

we can achieve.

Peter Foster

CHIEF EXECUTIVE OFFICER

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17AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

20 years of growth

2002

Foundation and

strategicvision

– Air Astana was established as

a joint venture between the

Government of Kazakhstan

and BAE Systems, with a

clear mandate to build a

world-class national carrier

– First commercial flight

operated in May 2002,

connecting Almaty and Astana

– Focus from inception on the

highest standards of safety,

service and corporate

governance

2005

Building credibility

andearly expansion

– Rapid expansion of the

routenetwork across

CentralAsia and key

international destinations

– Introduction of modern

Airbus fleet, reinforcing

commitment to efficiency

and passenger comfort

– Early positioning as a reliable

full-service carrier in a

developing aviation market

2011

Strengthening

internationalpresence

– Continued network

expansion into Europe

andAsia, enhancing

Kazakhstan’s connectivity

– Recognition for service

quality begins to build

globally

– Investment in operational

excellence and training

infrastructure

2019

Launch of

FlyArystan

– Successful launch of

FlyArystan, the Group’s

low-cost carrier

– Opened air travel to

abroader population

segment and stimulated

domestic demand

– Established a dual-brand

model supporting both

yieldand volume growth

2020

Resilience

through crisis

– Demonstrated agility

duringCOVID, maintaining

operations and adapting

capacity dynamically

– Accelerated digitalisation

andcost discipline measures

– Positioned the Group for

recovery through a flexible

operating model

2024

Successful IPO and

newgrowth chapter

– Landmark IPO with listings

on KASE, AIX, and the

London Stock Exchange

– Strengthened capital

structure and increased

international investor base

– Entered a new phase of

disciplined growth, focused

on returns, fleet expansion,

and network development

Over more than two decades, Air Astana has evolved

from a start-up carrier into Central Asia’s leading

airline group – defined by operational resilience,

disciplined growth and the ability to adapt to an

increasingly dynamic aviation market.”

CEO’S STATEMENT CONTINUED

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18AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

Q&A WITH PETER FOSTER

AND IBRAHIM CANLIEL

Moving forward

with confidence

What are your reflections on the last 20 years?

PF: Looking back, the last 20 years have been a remarkable

journey. When I arrived, Air Astana was still a fragile, post-start-

upairline, and our first priority was simply to build operational

integrity and stability into the business. Over time, that developed

into something much bigger: a strong, resilient and internationally

recognised airline group.

What stands out most to me is the scale of that evolution, without

sacrificing safety, customer service and financial strength. The

company has grown not only in size, but in maturity, capability and

confidence. Above all, it has shown a consistent ability to meet

challenge with focus and resilience, and I think that has been one

of the defining features of its development.

IC: For me, the last 20 years reflect an extraordinary period of

growth and transformation. What began as a young airline with

clear potential has become a strong and respected aviation group

with a distinct position in the region and beyond.

What I reflect on most is the consistency of the journey – the fact

that the company has grown while remaining anchored in the

same core principles: strong governance, high standards and a

culture that encourages people to contribute and develop. That is

what has shaped the business over time and created such a strong

foundation for the future.

Why has Air Astana been able to succeed in

what has often been a challenging operating

environment?

PF: I think there are several reasons. One is that the Group was

built on very clear principles from the outset – high operational

standards, strong governance and a clear sense of commercial

discipline. Those things matter in any market, but they matter

even more in a challenging one.

The other factor is resilience. Over the years, the business has

faced a number of external shocks and periods of uncertainty,

butthe organisation has decisively responded with focus and calm

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Q&A WITH PETER AND IBRAHIM CONTINUED

rather than overreaction. That ability to stay agile, while keeping

sight of long-term direction, has been an important part of the

Group’s development.

IC: Part of the answer lies in the market itself, which hasoffered

asignificant long-term opportunity, but opportunity onitsown

isnever enough. The Group has been able to benefit fromthat

environment because it has remained disciplined inhowit

hasgrown and adapted.

A strong operating model, the ability to allocate capacity

dynamically, and a willingness to evolve as market conditions

changed have all played an important role. Just as importantly,

thebusiness has developed a culture where people stay engaged,

contribute ideas and respond quickly to change, and that has

helped support growth through different phases of the journey.

What are you most proud of?

PF: What I am most proud of is the fact that we built a serious

airline in every sense of the word. In the early days, not many

people in the industry looked at Air Astana and imagined that

itwould become what it is today. To have helped build an airline

that is now recognised internationally, and respected for its

standards and quality, is something I take great pride in.

What makes it particularly meaningful is that it reflects the work

ofmany people over many years.

IC: What I am most proud of is having helped build not only

asuccessful airline, but a distinctive culture grounded in

professionalism, operational excellence, agility and resilience.

Having worked across different roles in the business over many

years, Ihave seen how that culture has enabled the Group to

maintain high standards, respond effectively in challenging

circumstances and continue delivering for customers. It is reflected

in the ownership people take, the way teams work together, and

the strong focus on safety, reliability and service quality that has

shaped Air Astana’s progress.

How are you feeling taking over the reins?

IC: I feel both excited and privileged. It is a significant responsibility,

but also a very natural transition, given how closely we have

worked over many years. For me, it is about building on the

strongfoundations that are already in place, while preparing

theorganisation for its next phase of development.

What is foremost in my mind is ensuring continuity, while also

strengthening our ability to execute as the business grows in

scaleand complexity. It is an exciting moment for the Group,

andIam confident we are well positioned for what comes next.

PF: I am delighted to be handing over to Ibrahim. Having worked

closely with him over many years, I know the strength of his

leadership and his deep understanding of the business. He has

played an important role in shaping the Group we are today and is

exceptionally well placed to lead Air Astana into its next chapter.

How do you see Air Astana’s strategy

developing?

IC: The direction itself does not change, but the next phase will

require a different level of readiness across the organisation. We are

becoming more ambitious in our international focus, entering new

markets and competing in a much more complex environment.

Thatmeans the strategy will be shaped not only by growth, but

byhow well we prepare for that growth – in our systems, in our

people and in the competencies the business will need.

What gives me confidence is the strength of the platform we

already have, together with the continuity that comes from Peter

remaining involved as Senior Advisor to the Board. This is a

business with a clear sense of identity, astrong culture and people

who have shown time and again thatthey are capable of adapting,

contributing and delivering. Weare entering this next phase from a

position of strength, and that matters. The core values and

principles remain exactly as they are, but the focus will

increasingly be on building the capabilities required to scale

effectively and capture the opportunities ahead.

Looking back, the last 20 years have been a

remarkable journey. What stands out most to me is

the scale of the Group’s evolution, without sacrificing

safety, customer service and financial strength.”

Peter Foster

Having worked across different roles in the business

over many years, I have seen how a distinctive

culture grounded in professionalism, operational

excellence, agility and resilience, has enabled

theGroup to maintain high standards, respond

effectively in challenging circumstances and

continue delivering for customers.”

Ibrahim Canliel

Overview Other informationGovernance Financial statements

20AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY

GRI 3.3

The Air Astana Group strategy is built

on three pillars – growth, efficiency and

excellence. Together, these are driving

our ambition tobe recognised as one

ofthe finest airline groups in the world.

Alongside this, we have shown our resilience

inthe face of industry-related and geopolitical

challenges, and consolidated ourposition

through our agile and flexible

responses, fulfilling our promises to

our shareholder base.

Strong passenger and revenue growth

Improved connectivity to nearby megamarkets,

particularly India and China

Fleet expansion on track

Dividends paid ahead of guidance

Read more on page 72

Well-controlled CASK due to efficiency measures

Fleet simplification

Proactive execution of Pratt & Whitney mitigation plan

Dynamic capacity allocation to highest yielding routes

Continued investments in infrastructure improving

operational efficiency

Implementation of digital transformation strategy

Renewal of IATA Operational Safety Audit (IOSA)

Category winners at Skytrax World Airline Awards

and upgrades to customer experience

Enhanced Strategic Partnerships, including recent

codeshare agreement with China Southern Airlines

Updated Low-Carbon Development Programme

Highlights

Strategy for

sustainable growth

Growth

Excellence

Efficiency

Overview Other informationGovernance Financial statements

21AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Growth

GRI 3.3

Resilient growth delivering improved operatingprofitability

Enhanced strategic partnerships

Our location at the intersection of global megamarkets is a key

competitive advantage, offering significant scope for our strategic

plans for international expansion. During the second half of 2025,

Air Astana signed codeshare agreements with China Southern

Airlines and Air India to accelerate this growth opportunity by

expanding access to the megamarkets of China and India.

China has always been a strategically important market for the

Group and the agreement with China Southern Airlines will boost

trade, tourism and cultural links. The codeshare covers 50 weekly

flights between Kazakhstan and China, providing passengers

withmore travel options and improved connectivity between

both countries.

India is of key strategic importance to the Air Astana Group as

weincrease flights from Kazakhstan to Delhi, Mumbai and Goa.

AirIndia operates a comprehensive network of flights to, from

and across India, the world’s most populous country and one of

the fastest growing travel markets. The first codeshared flight

took off on 4 November 2025 and this comprehensive agreement

will accelerate the increasingly strong business, tourist and

student traffic flows between the two countries.

Alongside our existing codeshare agreements, with Japan Airlines

for the Japanese market and existing commercial relationships

across Europe and Asia with carriers such as Lufthansa and

Turkish Airlines, these new arrangements are integral to our

plans to expand our international reach. We received increased

passenger traffic from other codeshare partners over the winter

as airlines with higher cost bases reallocated winter capacity on

two key international routes, Frankfurt and Seoul.

In recognition of this crucial aspect of our ‘Going Global’ campaign,

Richard Ledger has transitioned from his role as FlyArystan

President to that of Vice President, Partnerships and Alliances.

Hisbrief is to further develop and increase our Enhanced

StrategicPartnerships – a central pillar of our growth strategy.

Aircraft in the fleet

9.7m

Passengers in 2025

New routes added in 2025

Overview Other informationGovernance Financial statements

22AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Growth

Focus for 2026

We are scheduled to take delivery of three

Boeing 787-9 aircraft in 2026/27 as part of

ourprogramme to increase the Group fleet

to86aircraft by the end of 2030.

We will further capitalise on our proximity to

megamarkets and their potential by increasing

the frequency of flights, particularly to China

andIndia.

We will continue developing our network,

bothwith flights in Central Asia, the Caucasus

and China – including Shanghai (Pudong) and

Guangzhou in China, as well leisure destinations

– including Larnaca in Cyprus and Samarkand in

Uzbekistan.

We plan to grow our fleet from 62 aircraft today

to 86 by 2030, with the Airbus A320 family as

our backbone. Adding three 787s to replace 767s

will reduce fuel, crew and maintenance costs

and increase flexibility.”

Filippos Siakkas

CHIEF OPERATING OFFICER

2025 progress

We continue to deliver on, or exceed, our growth

guidance. This is reflected in higher passenger volumes

and revenue, fleet expansion, and improved connectivity

through new destinations and increased frequencies.

Strong passenger and revenue growth

We increased our passenger numbers to 9.7 million during 2025,

asignificant rise of 7.9% and up from 9 million last year, continuing

the rising trajectory post-COVID era. Both our airlines continue to

proactively manage their networks and allocate capacity to

maximise yield, particularly in favour of the higher margins on

AirAstana’s international routes. ASK – a measurement of airline

capacity – followed a positive trend throughout the year, with

overall growth of 19.8% on international and 6.9% on domestic

routes, the majority of this determined byAir Astana.

Improved connectivity to nearby megamarkets

We continued making progress with the Group’s strategy to

improve connectivity within Kazakhstan and across its regional and

international network, with flights to new destinations and great

frequency across the board. During 2025, we launched 25 new

routes across the megamarkets of China and India, Southeast Asia

and the Gulf, as well as to seasonal tourist destinations, and

introduced direct flights from Almaty to Frankfurt to complement

the existing daily flights to the city from Astana.

We accelerated our expansion into the Chinese market, steadily

increasing flights from 16 weekly flights in 2024 to 24 across six

destinations. Two of these destinations, including Guangzhou,

were added in 2025. Additional flights to Beijing and Shanghai

began in early 2026, and seats on these routes remain in high

demand. We have also supplemented our weekly flight to India,

upfrom 12 to 16 – to Delhi and to Mumbai towards the second

halfof the year. During the autumn, we resumed our services

andfrequency of flights to the Middle East – to Jeddah, Medina

andDubai – following the disruption caused by geopolitical events.

Ourwinter schedule to popular tourist destinations across Asia

included Male in the Maldives and Phu Quoc in Vietnam. We also

expanded our services to Thailand with seven weekly flights to

Bangkok and Phuket.

Fleet expansion on track

During 2025 and as we entered 2026, we also made major strides

with our planned fleet expansion, a fundamental element to

achieving our growth strategy and underpinning our operational

resilience.

In November 2025, we placed a substantial new order of up to

15Boeing 787-9 Dreamliners to augment our long-haul fleet and

boost its service capabilities from Central Asia and the Caucasus to

Asia, Europe and the rest of the world over the next decade. The

order of five firm positions, five options and five purchase rights is

in addition to the three Boeing 787-9 aircraft scheduled for delivery

in 2026/27, and will increase the wide-body fleet size to up to 18

aircraft. The newly ordered aircraft will be delivered between 2032

and 2035. The total value of the of the order for 18 Boeing 787-9

aircraft fleet, including engines, is USD 7 billion (based on

manufacturer list prices). We secured shareholder approval in

January 2026 and the agreement was signed on 9 February 2026.

We have also signed a Memorandum of Understanding for the

largest order in the airline’s history for up to an additional 50

Airbus aircraft – a mix of Airbus A320neo and A321neo models –

comprising of 25 firm aircraft and 25 purchase options with first

deliveries starting in 2031. The majority of the aircraft will be

allocated to the Airbus A321LR; Air Astana was one of the first

airlines to install this deluxe configuration for deployment on its

pioneering long-haul services to Asia and Europe, and over the

past five years has set the standard for new operators of the type

around the world. Shareholder approval for the order has been

received, and the purchase agreement was signed on

26February2026.

Overview Other informationGovernance Financial statements

23AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Efficiency

GRI 3-3

Proactive cost management and strategic investments

Proactive Pratt & Whitney mitigation

In July 2023, Pratt & Whitney issued a product recall of PW1100G

engines due to contamination of powdered metal, causing

industry-wide disruption for global airlines. The Group’s fleet

largely comprises Airbus A320 family aircraft, powered by these

Pratt & Whitney engines, and we put in place a mitigation plan

at an early stage. The plan focused on dynamic capacity

management and aproactive engine resting programme

tomaximise deployment during peak operational periods.

The Group also took decisive, early action to secure 13 spare engines,

lease five additional A320 family aircraft and has performed 115

PW1100G engine replacements at its in-house MRO facilities

during this year alone to manage the engine life and maximise

capacity. While operationally intensive, this has successfully

mitigated the impact of the powdered metal issue on the Group.

Although Pratt & Whitney has been delivering new engines

unaffected by powdered metal from production for the past

27months, the backlog of affected engines requiring workshop

remedial work is now expected to persist through to 2028.

In addition to the powdered metal issue, we were forced to

undertake 22 UERs, caused by additional Pratt & Whitney

defects, during the course of 2025; 14 of these were during

thesummer peak, grounding aircraft and reducing thecapacity

preserved for deployment at this busy time. In 2025, the Group

took additional mitigation action by bringing in four additional

spare engines (two arriving late in the year) and accelerating

engine shop visits (SVs) despite industry-wide capacity constraints,

completing 11 inductions during 2025 and scheduling a further

10inductions for January–May 2026, including five ‘pit stop’ quick

turnaround SVs, with additional slots under discussion.

In March 2025, an agreement was reached with Pratt & Whitney

forcompensation and other support in recognition of the impact

onthe Group’s operations arising from the lack of availability of

engines for our Airbus fleet. Further discussions are ongoing about

recompense for the UERs caused by additional defective engines.

6.4 years

Average aircraft age

C-checks performed in 2025

50th

C-check completed

Overview Other informationGovernance Financial statements

24AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Efficiency

2025 progress

We have made significant investment in simplifying

our fleet, upgrading our maintenance infrastructure

and accelerating our digital transformation to reinforce

our business efficiency and, ultimately, our long-term

resilience.

Fleet simplification progresses

After formally redelivering the final Embraer E2 in September 2025,

we now operate with the simplest fleet profile we have had for

more than 20 years. The fleet currently comprises just two aircraft

types: the modern, fuel-efficient Airbus A320 family aircraft

alongside Boeing 767 aircraft used for longer international routes

flown by AirAstana. At the end of 2025, the fleet had expanded

to62 aircraft (from 57 in 2024): Air Astana 34 and FlyArystan 28

with the average aircraft age of 6.4 years at the end of the year.

This positions our fleet as one of the youngest within the global

airline industry. Operating ayoung, fuel-efficient fleet brings

multiple benefits, including reduced maintenance, optimised fuel

consumption and reduced CO

emission levels. Alongside this,

weare now deploying comprehensive fuel efficiency and

aircraftperformance monitoring systems to both improve

operational efficiency and optimise fuel consumption.

Continued investment in infrastructure

We have made further investments in our Technical Centre at

Astana, where we employ more than 234 certified, specialist

engineers in our in-house Maintenance, Repair and Overhaul

(MRO) department. Alongside their day-to-day remit, during 2025

they performed 115 PW1100 engine replacements (asdetailed

above), made an early redelivery of three Embraer E2 190-300

tothelessor and took delivery of eight A320 family aircraft.

In early 2026, we completed our milestone 50th C-check on an

Airbus A321 at our in-house Technical Centre inAstana. This reflects

years of systematic work to strengthen engineering capabilities:

since 2019, we have developed a highly qualified team of certified

engineers and mechanics holding international EASA Part-66

licences, in line with global civil aviationbest practice.

We have now expanded the service capabilities to enable

simultaneous C-checks to be performed, thereby expanding

capacity to three lines, which in turn has accelerated the servicing

speed to reduce aircraft downtime and enable earlier return to

service for production. A major undertaking during the year

involved teams of 40 engineers and technicians, each working

ontwo heavy C-checks in parallel: a 6-Year C-check and 12-Year

C-check, requiring 12-hour working days for an average of 24 and

54 days, respectively. These extensive mandatory checks on

aircraft in good working order prevent faults occurring that could

lead to cancellations and unsafe events in flight.

Our plans for the construction of new hangars in Almaty and

Astana are well underway. These will add to the maintenance

capacity across the Group’s two main hubs, further reducing costs

and, at the same time, allowing us to also offer scarce and high-

value heavy maintenance to external customers. Designs for the

hangars are in place, pre-build site inspections have been carried

out and construction is scheduled to start in 2026.

The de-icing infrastructure in Astana and Almaty has been

modernised with new vehicles and expanded fluid storage,

enhancing operational readiness for the winter and flight safety.

Additional upgrades are planned for 2026.

Following on from the success of pilot training using the L3 Harris

A320 Full Flight Simulator at our Flight Training Centre in Astana,

we have now purchased and installed a second simulator. This

became fully operational in April 2026. We are adding a second

building to the Flight Training Centre to house all the current

evacuation and fire-fighting simulators, and construction is already

underway. This enlarged facility will significantly increase training

capacity, improve efficiency and, potentially, generate revenue

from external pilot training.

Read more about pilot training in the Sustainability section on page 68

Overview Other informationGovernance Financial statements

25AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

Focus for 2026

The second L3Harris A320 Full Flight Simulator

atour Flight Training Centre in Astana became

operational in April 2026 and will significantly

enhance training capacity, improve operational

efficiency and support revenue generation from

external pilot training.

The construction of new hangars in Almaty

andAstana began in early 2026, adding

maintenance capacity across the Group’s two

main hubs and further reducing costs, with the

possibility of allowing us to offer maintenance

services to external customers.

The building extension to the Flight Training

Centre is scheduled for completion and will

significantly increase training capacity, improve

efficiency and, potentially, generate revenue

fromexternal pilot training.

Our AI Lab will continue to develop new

applications to enhance our operational

performance, crew productivity and the customer

experience as part of our digital transformation

programme.

STRATEGY IN ACTION | Efficiency

Digital transformation strategy

Advancing our digital transformation by integrating next-

generation systems into our day-to-day activities is pivotal to

enhancing operational performance, crew productivity and our

customer experience. We launched our AI Lab in early 2025 to

escalate this process and are already seeing tangible progress

witha rapidly expanding pipeline of AI applications, from workflow

assistants and data analysis to transcription and translation. In July,

Air Astana rolled out its Automated Customer Communication

Agent, which automates routine customer service tasks with

real-time information and greater employee productivity; a

FlyArystan version is currently under development.

We are also using advanced optimisation tools to lower the

costofplanning and improving pilot utilisation. These are already

contributing positively to on-time performance, while lowering

total cost and improving airline efficiency. We successfully

deployed the Jeppesen Crew Pairing system since April 2025 and,

during the peak season, successfully reduced crew duty days

by16% and released 17% of seats for commercial sale through

optimised crew positioning. We also introduced the Jeppesen’s

Crew Rostering Optimiser in September 2025 and have plans to

add Jeppesen’s Crew Bidding in Q1 2026, both of which will provide

more more flexibility and engagement for crew members.

In order to optimise fuel consumption, Air Astana has partnered

with StorkJet to implement an AI-driven fuel efficiency and

performance monitoring platform.

Read more about our jet fuel policies in the Market overview section on

page 12.

Air Astana Terminal Services

In June 2025, we registered our wholly owned Ground Services

subsidiary as Air Astana Terminal Services LLP (AATS). It will

provide ground handling and related services to support both

airline brands, improve operational efficiency and create potential

third-party revenue opportunities. Over time, it is expected to

strengthen control over key costs and support the development

ofground handling services in Kazakhstan.

Upgrades in airport facilities

We continue to co-operate closely with airport authorities, partners

and local communities to ensure the most modern and efficient

airport services are available to our passengers. For domestic

flights, new terminals were opened during the year at Kyzylorda

and Shymkent, with major upgrades completed in Aktau, Uralsk

and Ust-Kamenogorsk, increasing capacity and offering improved

technology and operational standards. For international flights,

thetransition to new terminals at Urumqi Tianshan International

Airport in China and Male Velana International Airport in the

Maldives has strengthened partnerships with airport operators

andenabled seamless integration into global aviation networks.

Overview Other informationGovernance Financial statements

26AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Excellence

GRI 3.3

Enhancing the customer experience

International recognition for the Group

Skytrax winners – the Skytrax World Airline Awards are

considered one of the most authoritative measures of passenger

satisfaction in global aviation and are often referred to as the

‘Oscars of the aviation industry’. At the 2025 Skytrax World

Airline Awards ceremony, the Air Astana Group once again

wona number of eminent awards.

For the fourteenth year in succession, Air Astana received

theprestigious ‘Best Airline in Central Asia & CIS’ award,

together with ‘Best Airline Staff Service in Central Asia & CIS’,

awarded for the ninth time.

FlyArystan also confirmed its regional leadership by receiving

the ‘Best Low-Cost Airline in Central Asia & CIS’ award for

thethird consecutive year.

APEX awards – Airline Passenger Experience Association (APEX)

ratings are based entirely on verified passenger feedback, who

evaluate over one million flights operated bynearly 600 airlines

worldwide. During 2025, Air Astana was awarded a Five-Star

rating in the ‘Major Airlines’ category for the sixth consecutive

year and in the Best Overall Airline Award APEX 2026 named the

‘Best Airline in Central Asia’. These awards areconfirmation of

Air Astana’s consistently high standards ofservice. In its own

surveys, passengers praise the airline for comfortable seating,

attentive onboard service, diverse diningoptions and modern

in-flight entertainment systems.

We are proud that our relentless efforts to

deliver the very highest standards of service

have once again achieved international

recognition. These awards are the result

ofthe dedicated work of our teams at both

AirAstana and FlyArystan and reflect our

unwavering commitment to safety, service

and operational excellence.”

Peter Foster

CHIEF EXECUTIVE OFFICER

OF THE AIRASTANAGROUP

(until 31 March 2026)

Net promoter score

+17% year-on-year

Customer satisfaction score

+7% year-on-year

Employees took part in

theSummer Task Force

Volunteers Programme

Overview Other informationGovernance Financial statements

27AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Excellence

2025 progress

Whether ensuring the safety of our aircraft, improving

the sustainability of air travel or upgrading in-flight

services, we are focused on enhancing the experience

ofour customers from the first moment of engagement

with our airlines until they are safely delivered to their

destination.

Customer experience equals customer satisfaction

During 2025, we continued to evolve the overall customer

experience into a strategically managed, end-to-end capability,

which reflects our clear understanding that customer experience

isnot shaped by isolated touchpoints, but by the alignment of

people, product, processes and data working together at scale,

with defined ownership at key stages of the journey.

Product excellence is central to delivering a consistent and

emotionally engaging customer experience. Our product

development strategy allows us to adapt seamlessly to market

andcustomer needs by focusing on six areas: sustainability, ‘Going

Global’ activities, enhancing the dining and total experience, brand

awareness and leveraging technology. This year, our sustainability

initiatives focused on waste reduction and the introduction of

eco-friendly materials across services. ‘Going Global’ activities,

including culturally relevant dining elements and language

adaptations, have been designed to support engagement with

international customers. We collaborated with Kazakhstani

restaurants to both enhance and tailor the dining experience

topersonal tastes. Digital initiatives, including developments

supported by the 15below platform, contributed to improved

communication and functionality within the mobile application.

Brand awareness was reinforced through signature elements such

as exclusive audio tracks and culturally resonant touchpoints across

the customer journey.

Process excellence is a vital component in continually improving

the customer experience by reviewing operational simplicity,

friction reduction and cross-functional coordination between

Ground Services, Inflight Services and Operations. Initiatives in

2025 to support this included:

– The customer experience team assessed the effectiveness of

processes and the systems across the entire customer journey,

from ticket purchase through to passenger arrival at the final

destination. This assessment considered different passenger

profiles, recognising that each may have a distinct requirement

at specific touchpoints and, consequently, a different

experience, which supports the ongoing goal of improving

personalisation.

– To support independent assessment of service consistency

andalignment with established standards, we continued the

Mystery Shopper programme for the third consecutive year.

Theprogramme provides an objective view of service delivery

across key touchpoints and complements other customer

feedback mechanisms.

Customer experience insights, obtained through a diversified

ecosystem of feedback sources both inform and help us manage

the customer experience. Over 23,000 passengers responded to

our post-flight survey during 2025, providing us with a reliable

andrepresentative dataset of customer insights, enabling more

detailed analysis of customer expectations, service perception

andexperience consistency across their journey.

To gain qualitative insights to complement this quantitative

feedback, we held the Voice of the Customer Forum for the second

time. We invited passengers to share their experiences directly

with members of the management team, supporting open

dialogue and a deeper understanding of customer perspectives,

emotions and priorities.

Our use of artificial intelligence (AI) is increasingly important in

substantiating customer-experience analytics, enabling deeper

interpretation of large volumes of open-text customer feedback.

AI-powered text analysis supports the identification of recurring

themes, emotional patterns and priority areas for improvement,

complementing survey results, mystery shopper assessments and

direct customer dialogue. Insights are translated into prioritised

actions and monitored through ongoing feedback and quality

assurance mechanisms.

Key performance indicators determine the excellence of our

customer experience. Passenger satisfaction, their willingness

tocontinue using our services and their readiness to recommend

us are all prerequisites for the continued success and growth of the

business.

Our continued focus on consistency and reliability within delivering

an excellent customer experience was reflected in stable and

improved performance indicators. We achieved an average net

promoter score (NPS) of 48 – exceeding the target level of 42 and

asubstantial improvement on our 2024 score of 41. Our customer

satisfaction score (CSAT) also increased: up to 80 from 75in 2024.

We recognise that on-time performance (OTP) is a key criterion

inpassenger airline choice and we endeavour to meet their

expectations by putting in place measures to mitigate potential

disruptions to OTP. However, we are also dependent on airport

restrictions, Airbus requirements under certain weather conditions

and, in 2025, the ongoing issues with Pratt & Whitney engines.

These external factors all contributed to a dip in OTP to 78% in

2025, slightly below the target level of 80%, with delays caused

byGround Services accounting for 6.86% of the total.

Overview Other informationGovernance Financial statements

28AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STRATEGY IN ACTION | Excellence

Focus for 2026

We aim to return to a high-scoring OTP – a key

criterion in passenger airline choice – with an

overall target of 85% and a focus on reducing

Ground Handling–related delays to 2%.

We have a number of projects in the pipeline

forupgrading our award-winning product and

customer experience, including new onboard

safety videos, improving connectivity on the

A321neo LR and Boeing 787 and 3D moving

mapfeaturing destination guides as well as a

turndown service for business class travellers

onlong-haul routes, and new toiletry bottles

withUlyDala fragrance.

Priorities for the Strategic Partnerships & Alliances

during 2026 will focus on joint venture development,

optimising the global partnership portfolio,

disciplined expansion of high-value codeshares and

building a world-class partnership management

capability.

Rewarding our frequent flyers

We carried out extensive marketing activities in 2025, aimed at

increasing awareness of the frequent flyer programme. As a result,

the membership base grew to 730,000 registered members.

Inaddition to the changes implemented in 2024 to boost member

engagement and customer satisfaction, redemption options were

further expanded. Members can now use their points not only for

award tickets and upgrades from economy to business class, but

also to purchase MySEAT and additional baggage using their points.

Our partnership network has also been positively received

byfrequent travellers, with strong adoption and usage; our

co-operation with Halyk Bank proving one of the most successful

examples. We also implemented initiatives aimed at increasing

loyalty among top-tier members and building closer emotional

relationships.

Summer Task Force Volunteers Programme

For the third consecutive year, we ran our Summer Task Force

Volunteers Programme during the 2025 peak season. Some 70

employees from various non-operational departments supported

Ground Services teams in managing increased passenger flows

and operational complexity. In addition to providing operational

assistance, the programme enhanced cross-functional understanding

and enabled participants to experience the customer journey first

hand, strengthening empathy and awareness of passenger

expectations and service challenges. This initiative continues

toreinforce collaboration and shared ownership of the customer

experience across the organisation.

IATA Operational Safety Audit endorsement

Since 2007, every two years, Air Astana has undergone the IATA

Operational Safety Audit (IOSA) to verify its compliance with

international safety standards. In 2025, the airline successfully

passed the audit for the tenth time.

IOSA is an internationally recognised evaluation system designed

to assess the operational management and control systems of

anairline, in line with applicable ICAO safety requirements from

the Annexes to the Convention on International Civil Aviation.

AirAstana’s compliance with these standards and recommended

best practice were all confirmed, including corporate management

systems, flight execution and dispatching, aircraft maintenance,

onboard and on-the-ground maintenance, cargo operations and

aviation security.

Updated Low-Carbon Development Programme

We previously developed a Low-Carbon Development Programme

(LCDP) for 2023–2032, setting goals to reduce greenhouse gas

emissions and consistent with Kazakhstan’s goal to achieve carbon

neutrality by 2060. In 2025, we updated our LCDP with a

commitment to reach net zero by 2050, in line with the long-term

global aspirational goal adopted by the International Civil Aviation

Organization (ICAO) Assembly in 2022. A clear implementation

roadmap has been developed, delivering emissions reductions

through near-term milestones on the path to net zero. Independent

verification of the LCDP confirmed its alignment with the Transition

Pathway Initiative’s rigorous methodology, which benchmarks

emissions pathways across sectors.

Pivotal role in sustainability framework

IATA has acknowledged the Group’s valuable contribution to the

development of the IATA Integrated Sustainability Programme (ISP)

and this is an affirmation of our ongoing commitment to sustainability

and responsible practices. As one of the pilot organisations

assisting with the refinement of the ISP Sustainable Procurement

Standards, our insights about Central Asia and the CIS region were

pivotal in helping to shape a framework that reflects diverse

operational environments and challenges.

The IATA ISP’s comprehensive framework will enable airlines to

manage and assess sustainability effectively. It integrates the

monitoring of ESG performance, giving stakeholders, regulators

and customers a clear and transparent view of an airline’s progress

and commitment to sustainable practices.

Overview Other informationGovernance Financial statements

29AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

KEY PERFORMANCE INDICATORS

Link to strategy

Growth Efficiency Excellence

Tracking our performance

Total revenue

(USDm)

1,454

1,305

1,164

1,016

2025

2024

2023

2022

The Group delivered strong growth from total revenue and other

income, increasing 11.4% from USD 1,304.9 million in 2024 through

resilient demand, disciplined capacity and revenue management.

RASK

(US cents)

6.60

6.75

6.58

6.38

2025

2024

2023

2022

Overall, RASK decreased by 2.3%, down from 6.75¢ in 2024, and

areflection of the negative growth in early 2025; a turnaround

increase of 9.8% in Q4 heralds margin improvement driven by

production increases, particularly during the 2026 summer peak.

EBITDAR margin

(%)

22.1

24.4

25.1

25 .6

2025

2024

2023

2022

The Group’s EBITDAR margin was 2.3 pp lower than that of 2024

at24.4%, impacted by engine-related constraints, foreign

exchange movements and cost pressures, particularly during the

second half of the year and is on track to meet medium-term

expectation of amid-to-high 20s EBITDAR margin.

CASK

(US cents)

6.20

6.10

5.86

5.63

2025

2024

2023

2022

The implementation of new initiatives and technologies to deliver

operational cost efficiencies once again saw a moderate increase

in CASK, up by 1.6% from 6.10¢ in 2024.

EBITDAR

(USDm)

321.2

318.7

291.6

260.1

2025

2024

2023

2022

EBITDAR increased 0.8% from USD 318.7 million in 2024, with

top-line performance partly offset by operational and cost

pressures during the year. The Group estimates that cumulative

lost production from Pratt & Whitney-related UERs had a negative

effect on EBITDAR of USD 42.3 million.

Financial KPIs

The Group delivered a resilient financial performance

in 2025 despite substantial operational and external

headwinds. Although revenue growth remained

robust, profit margins were pressured by engine-

related constraints, foreign exchange volatility

andcost inflation.

1 Excluding non-recurring revenue items (USD 4.2 million).

2 Operating profit + Depreciation + Aircraft leases + Property lease of USD 1.1 million).

Overview Other informationGovernance Financial statements

30AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

KEY PERFORMANCE INDICATORS CONTINUED

Fleet size

2025

2024

2023

2022

We once again increased the size of our fleet, up from 57 in 2024,

in support of our growth and operational efficiency strategies:

34operated by Air Astana and 28 by FlyArystan.

Passengers

(m)

9.7

9.0

8.1

7.3

2025

2024

2023

2022

Group passengers carried increased by 7.9%, up from 9.0 million

transported in 2024, across our domestic, regional and

international networks and seasonal destinations.

Load factor

(%)

82.7

83.5

82.8

82.7

2025

2024

2023

2022

The Group maintained a stable average load factor compared

withthat of 83.5% in 2024.

ASK

(bn)

22.0

19.3

17.7

15.9

2025

2024

2023

2022

Group ASKs were up 14.0% compared with 19.3 billion in 2024,

driven by a 19.8% increase in international ASKs together with

a6.9% growth on domestic routes.

RPK

(bn)

18.2

16.1

14.6

13.2

2025

2024

2023

2022

RPK was up 13.0% from 16.1 billion in 2024 with our continued

focus on strengthening connectivity with 25 new routes launched

across our networks during the year.

Non-financial KPIs

Accelerating growth through network expansion,

megamarket connectivity and disciplined capacity

deployment.

Link to strategy

Growth Efficiency Excellence

Overview Other informationGovernance Financial statements

31AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

OPERATING REVIEW | Air Astana

Strategic shift towards higher-margin

international routes

With our full-service airline, Air Astana, the

majority of our flights are operated on point-

to-point business and ‘lifestyle’ destinations,

with a deliberate shift in capacity towards

higher-margin international routes. Customer

engagement and feedback remain central to

continuous improvement across the service

proposition, supporting a consistently high-

quality passenger experience.

Operational highlights

9.1%

Passenger growth

2025: 5.2m

81.4%

Load factor

Air Astana delivered strong growth in 2025, with ASKs increasing

by 15.9% to 15.5billion and RPKs rising by 15.4% to 12.7billion.

Theload factor decreased slightly by 0.4 percentage points to

81.4%, reflecting capacity growth broadly in line with demand.

Unit revenues improved, with RASK increasing by 0.8% to

7.78UScents, supported by the continued rebalancing of the

network towards higher-margin international routes, while CASK

increased by 4.7% to 7.39US cents as inflationary and operational

cost pressures persisted. Overall, the revenue performance outpaced

cost growth, resulting in a modest improvement in unit margin.

Fleet

At the end of 2025, Air Astana operated a modern, fuel-efficient

fleet of 34 Airbus A320 family and Boeing 767 aircraft. The airline

fleet had an average age of 5.9 years, with aircraft utilisation

remaining high compared with peers.

Expanding network

In 2025, Air Astana launched 17 new routes, bringing the total

network to 78, with a particular focus on seasonal leisure destinations,

high demand nearby markets in China and India, and growth

opportunities in Southeast Asia and the Gulf.

The Chinese market performed particularly well, delivering strong

growth in both business and leisure traffic. In March, Air Astana

increased the frequencies on the Astana–Beijing route and launched

its inaugural flight from Almaty to Guangzhou, which is performing

particularly well, with more flights added to the schedule.

In India, Air Astana expanded services in response to strong

demand. In late April, the airline launched a new route between

Almaty and Mumbai and increased services from three to five

flights per week, with plans to expand to daily flights as capacity

became available. This complements the existing Almaty–Delhi

service, which operates nine weekly flights.

In Europe, Air Astana commenced direct flights from Almaty to

Frankfurt in codeshare, alongside existing services from Astana

and Uralsk, while new routes from Atyrau to Baku and Atyrau

toTbilisi strengthened connectivity with the Caucasus.

Seasonal services to key leisure destinations resumed in late

October, including Almaty–Male (Maldives) and Almaty/Astana–

PhuQuoc (Vietnam), and services to Thailand were expanded,

withAlmaty–Bangkok increasing from four to seven weekly flights

andAlmaty–Phuket rising from four to seven weekly flights.

Following a recovery in demand across the Gulf, services were

resumed and frequencies increased during the autumn. Flights

toJeddah from Almaty and Shymkent resumed in September and

in October, flights to Medina restarted from Almaty (six times per

week) and from Astana and Shymkent (twice weekly), alongside

the introduction of weekly flights from Aktau. Services between

Almaty and Dubai increased from seven to 12 flights per week and

Astana–Dubai from seven to ten. However, hostilities in the Middle

East since early March have required the suspension of flights to

the region, including Dubai, Doha, Jeddah and Medina. Capacity

has been reallocated to Southeast Asia in response to a spike in

demand, supported by Air Astana’s dynamic capacity allocation

model. The airline continues to monitor developments closely,

with the safety of passengers, crew and aircraft remaining the

highest priority.

Overview Other informationGovernance Financial statements

32AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

OPERATING REVIEW | Air Astana

In-flight Excellence Awards

At the Aircraft Interiors Expo 2025, held in Hamburg in April

2025, Air Astana received multiple international awards for

in-flight excellence. The airline was presented with the Travel

Plus Gold Award for its Economy Class amenity kit, bedding

collection and infant kit. Air Astana scored top marks in the

Onboard Hospitality Awards for its baby kits for children

under two, Economy Class amenity kits and its digital menu

as well as being named a winner in the PAX Readership

Awards in several categories: Best Inflight Entertainment,

Best Onboard Catering, Best Economy and Premium Economy

Amenity Kits, and Best Kids’ Kit.

In part, these awards were due to the upgrades introduced

onboard during the year. The capacity of in-seat monitors

was doubled from 256 to 512GB, allowing for an expanded

selection of movies, local content, TV and music library,

audiobooks, podcasts, fairy tales and more. In Q3 2025, Air

Astana enhanced its in-flight entertainment system with an

updated interface, additional functionality and integration

with the new mobile app launched earlier in the year.

Passengers are now able to access movies and other in-flight

entertainment content directly on personal devices via the

Air Astana app, alongside an integrated notifications inbox.

The Cabin Crew Excellence Programme

As part of the ‘Going Global’ strategy, we launched a Cabin Crew

Excellence Programme (CCEP) in 2025. A thorough review of all

aspects of Air Astana’s in-flight services was conducted, including

organisational structure, leadership, training, personnel and

individual and collective performance. Its key focus was to

ensurethat when a passenger enters an Air Astana cabin,

theyconsistently encounter an atmosphere of commitment to

excellence, procedural compliance and a positively engaged and

friendly attitude. The development of onboard leadership is also

fundamental and the newly introduced Service Leadership training

will continue throughout 2026.

Sustainable aviation

As part of our commitment to the long-term sustainability of the

airline industry, in 2024, with the European Bank for Reconstruction

and Development and KazMunayGas (KMG), Air Astana co-financed

a pre-feasibility study on Sustainable Aviation Fuel (SAF) production

in Kazakhstan. This confirmed technical feasibility but highlighted

the need for greater industry and regulatory collaboration.

Key priorities for 2026

Continue to expand connectivity to China and India,

including leveraging recently signed codeshare

partnerships

Continue dynamic capacity allocation in response

togeopolitical developments

Support growth through ongoing management

ofPratt & Whitney engine constraints and fleet

expansion execution

Overview Other informationGovernance Financial statements

33AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

OPERATING REVIEW | FlyArystan

Stimulating demand in home

andnear-home markets

FlyArystan is positioned as a low-cost carrier

offering high-quality service at affordable

fares, balancing cost and comfort. The airline

continues to play an important role in

stimulating demand in Kazakhstan while

alsobuilding a growing presence across

near-home regional markets in Central Asia

and the Caucasus.

It now commands approximately 40% market share domestically,

while its market share across Central Asia and the Caucasus has

reached 10%. Historically, around 10% of passengers were

first-time flyers; in 2025, this had reduced to an average of 7%,

reflecting a maturing customer base, while still indicating a

meaningful opportunity to stimulate further demand.

Capacity expanded strongly during the year, with ASKs increasing

by 9.7% to 6.5 billion and RPKs rising by 7.8% to 5.6 billion. As

capacity growth outpaced demand, the load factor decreased by

1.5 percentage points to 85.8%, while RASK declined by 1.9% to

6.02 US cents, reflecting a more competitive revenue environment.

Cost pressures intensified, with CASK increasing by 7.1% to 5.77 US

cents and CASK ex fuel rising by 11.6% to 4.43 US cents, resulting

inmargin compression. Performance was also affected by Kazakh

Tenge depreciation and temporary airport closures in Q3 2025

(seeFinancial review on page 71).

Fleet

FlyArystan operates a uniform fleet of 28 Airbus A320 family

aircraft, with an airline average age of 7.1 years. The airline offers

high-density, single-class seating and achieves high aircraft

utilisation relative to its peers.

Network expansion

FlyArystan continues to expand its network, focusing on quick-

turnaround routes in domestic and near-home markets to support

high aircraft utilisation. Internationally, the airline targets destinations

within a 4- to 5-hour flight time from Kazakhstan. In 2025, FlyArystan

operated flights to 14 cities across Kazakhstan, while its international

network included destinations in China, Uzbekistan, Kyrgyzstan,

Azerbaijan, Turkey and Georgia. New regular and seasonal routes

launched during the year included Karaganda–Istanbul, Astana–

Gazipasa, Atyrau–Tashkent, Almaty–Tamchy (Issyk Kul) and, from

November, Aktau–Dubai. In May, FlyArystan launched direct flights

from Almaty to Yining (Kuldja) inXinjiang, providing a one-hour air

corridor between China and Kazakhstan.

In December 2025, FlyArystan, in partnership with Kazakhstan’s

leading tour operators, launched several charter programmes from

Almaty and Astana to Manohar International Airport (North Goa).

Timed to coincide with the New Year and winter holiday season,

these flights provided passengers with additional leisure travel

options.

Operational highlights

6.7%

Passenger growth (4.5m)

89.2%

Load factor

1 Based on the tickets sold.

Overview Other informationGovernance Financial statements

34AIR ASTANA GROUP INTEGRATED REPORT 2025

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OPERATING REVIEW | FlyArystan

Independent certification

Since January 2025, FlyArystan has operated under an independent

AOC and IATA code. It completed its first full IATA Operational

Safety Audit (IOSA) in September 2025 with an accepted corrective

action plan.

Appointment of new CEO

Richard Ledger transitioned from his role as President of FlyArystan

to Vice President, Partnerships and Alliances of the Air Astana

Group. Johan Eidhagen was appointed President of FlyArystan

effective 1March 2026. He joined from Wizz Air, where he held

several senior roles, most recently Managing Director of Wizz Air

Abu Dhabi.

Key priorities for 2026

Maintain disciplined capacity growth across domestic

and near-home regional markets

Further strengthen FlyArystan’s role in stimulating

demand in Kazakhstan’s underserved air travel market

Support operational efficiency, aircraft utilisation and

cost discipline

Advance the next phase of development underthe

leadership of Johan Eidhagen

20 millionth passenger

In October 2025, FlyArystan marked an important milestone,

carrying its 20 millionth passenger.

Twenty million passengers in six years – that’s

anumber comparable to the population of

Kazakhstan. It reflects our contribution to the

development of domestic and international

airconnectivity, the expansion of our regional

route network and the growing mobility of

citizens. Notably, one-third of these passengers

purchased their tickets for up to 15,000 Tenge.

For millions of people, this made it possible to

fly for the first time. This fact reinforces our

vision – we inspire people to explore new

horizons by creating safe and easy travel.”

Richard Ledger

PRESIDENT OF FLYARYSTAN

(until 28 February 2026)

Overview Other informationGovernance Financial statements

35AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STAKEHOLDER ENGAGEMENT

GRI 2-7; 2-29; 3-1; 3-2; 3-3

Engaging

withimpact

Maintaining the confidence and co-operation

of our diverse range of stakeholders is vital to

retaining our licence to operate and reinforcing

our ambitions for the long-term growth of the

business. Regular communication via various

feedback channels enables us to identify their

concerns, understand their needs and, more

importantly, respond proactively. This, in turn,

informs our decision-making about future

operations and ensures the continued

goodwill of our stakeholders.

Passengers

While expanding our network and operations through our ‘Going

Global’ strategy, our customers remain at the heart of our ambition.

We operate to the highest international service standards, offering

anexemplary travel experience for our passengers that embodies

Kazakhstan’s unique identity. Every customer touchpoint – on the

ground, in the air and via digital platforms – is a testament to the

safety, comfort and seamless service we provide.

Material needs

Our passengers seek a travel experience that:

– ensures safety and on-time performance

– delivers high-quality, affordable services

– provides accessible booking through ticketing offices and

enhanced digital platforms

– offers a revamped, spend-based Nomad Club frequent

flyerprogramme

– supports sustainability and includes valued ancillary services

How we engaged in 2025

– 24/7 call centre

– Digital channels like Web Chat with live-consultant options

– Customer Help Centre

– KOMEK, FlyArystan’s dedicated passenger support program,

providing preferential travel conditions, personalised assistance,

and support in complex or operationally sensitive situations to

passengers from vulnerable categories

– WhatsApp as a customer support and notification channel

(chatbot with live agents and proactive communications

duringdisruptions)

– Mobile app notifications across key stages of the passenger

journey

– Email communications across disruption notifications and direct

passenger engagement (updates, confirmations, feedback)

– Customer experience evaluation surveys

– Voice of the Customer Forum 2.0, where passengers engaged directly

with management to share feedback and discuss their experiences

– Third consecutive year of the Summer Task Force Volunteers

Programme, supporting passengers at Almaty airport and

enhancing the overall customer experience during peak operations

– Nomad Club Diamond Appreciation Event engaging our most

loyalcustomers

– Social media

– Tengri in-flight magazine

– Whistleblowing hotline for reporting violations of legislation

andtheCode of Conduct

Outcomes of our engagement

– Successfully completed IATA Operational Safety Audit (IOSA),

confirming full compliance with international safety standards

– Launched a new mobile app enabling passengers to seamlessly

book and manage flights, while providing Nomad Club members

with convenient access to their accounts and benefits

– Further enhanced the in-flight entertainment system with an

updated interface, additional functionality and integration with the

new mobile app

– Collaborated with Kazakhstani artists on the Y-class amenity kits project.

– Partnered with Auyl Restaurant to launch a signature menu during

Nauryz holidays

– Renewed soft inventory to upgrade cabin comfort

– Expanded the loyalty programme, enhanced redemption options

and introduced initiatives to deepen engagement and loyalty

among top-tier members

– Accelerated and enhanced ground services by introducing digital

solutions, streamlining check-in and boarding processes to deliver

safer, faster and more seamless passenger journeys

– Launched Cabin Crew Excellence Programme to ensure consistently

excellent service

Link to strategy

Growth Efficiency Excellence

Overview Other informationGovernance Financial statements

36AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STAKEHOLDER ENGAGEMENT CONTINUED

Our people

Our workforce is the foundation of operational

resilience and the long-term efficiency of the

business. We have created a safe, equitable and

supportive working environment where fair pay

and respectful treatment are ensured. By investing

in continuous learning and structured development

programmes, we strengthen professional

competencies and build a culture based on ethics,

responsibility and shared corporate values.

Material needs

A working environment for our people that:

– provides competitive remuneration

– is safe, healthy and supports mental

healthandwell-being

– offers equal opportunities for all genders,

agesand nationalities

– enables growth through training

anddevelopment opportunities

– upholds business ethics and corporate values

How we engaged in 2025

– Employee engagement surveys

– Departmental forums

– Focus group on corporate culture

– Line managers’ forums

– Management conference

– Employee Recognition Programme

– Talents Programme

– Internal mobile app

– Corporate magazine

– Performance reviews

– Whistleblowing hotline for reporting violations

of legislation and the Code of Conduct

Outcomes of our engagement

– In 2025, our employee engagement reached

itshighest level since measurements began in

2016, scoring 4.2 out of 5, with 3,791 employees

participating in the annual survey

– The engagement ratio, which is the second-

most important indicator, was 7.5 engaged

employees for each actively disengaged

employee

– An internal AI Portal was launched to provide

employees with access to AI assistants and

digital tools that support daily work processes

Link to strategy

Shareholders

Our ambitions to increase the Group’s value –

whileremaining mindful of environmental,

socialand human factors – could not be achieved

without thesupport of our shareholders and their

confidence in the sustainable, incremental growth

of the business. We maintain the highest standards

of disclosure and transparency, as befits a company

listed on three stock exchanges: London, Kazakhstan

and Astana International. This ensures our

shareholders have equal and easy access to

theGroup’s information, reinforcing a relationship

built on trust and long-term collaboration.

Material needs

Our shareholders want to invest in a business that:

– delivers strong financial performance and

sustainable growth

– operates with transparency and upholds

corporate values and business ethics

– demonstrates strong ESG performance

How we engaged in 2025

– Shareholders’ meeting

– Attendance at industry conferences and forums

– Quarterly earnings reports and publications

– Announcements on stock exchanges

– Presentations to existing investors

– Conference calls and webcasts

– Direct communication

– Issuer Day at Astana International Exchange

– Capital Markets Day at the London Stock Exchange

Outcomes of our engagement

– One General Meeting of Shareholders was

heldin 2025. For more information, please

referto page 94.

– Numerous engagements with capital market

participants, including existing investors and

analysts, enabled us to keep the market

updatedon recent Group developments

Link to strategy

Growth Efficiency Excellence

Overview Other informationGovernance Financial statements

37AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

STAKEHOLDER ENGAGEMENT CONTINUED

Suppliers and business partners

We operate an open and efficient procurement

process that considers our network of diverse

suppliers and business partners, ranging from

innovative start-ups and small enterprises to large

multinational organisations. This approach supports

the development of mutually beneficial agreements

and fosters strong, sustainable, long-term working

relationships.

Material needs

Our suppliers and business partners value a

partnership that:

– fosters long-term, mutually beneficial relationships

– operates with strong ethics and regulatory

compliance

– ensures transparent and fair procurement practices

How we engaged in 2025

– Direct correspondence

– Social media

– Website

– Whistleblowing line for reporting violations

oflegislation and the Code of Conduct

– Participation in Maintenance, Repair, Overhaul

(MRO) conferences and industry exhibitions

– Feedback surveys

– Open house day for suppliers

– ESG Awards initiative

– Inviting core suppliers to Group events

Outcomes of our engagement

– Supply chain flexibility continued to support

adjustments to sourcing routes in response to

UK, EU and US sanctions, ensuring operational

stability

– Sustained control of supply chain costs and

oversight of logistics partners support efficiency

and profitability

– Continuous monitoring of internal and freight

forwarder processes supports a lean and

well-controlled supply chain

– Ongoing engagement with service suppliers

supports awareness of evolving industry trends

and developments

– Second ESG Awards ceremony was held,

recognising partner contributions and further

raising awareness of the Group’s sustainability

initiatives

– The Group is progressing with the

implementation of the IATA Sustainable

Procurement Standard (IATA ISP) and suppliers

were informed about the initiative and the

potential introduction of ESG criteria in

procurement processes

– A new digital procurement platform was

launched, providing suppliers with transparent,

standardised and user-friendly access to all

stages of procurement

Link to strategy

Government, regulators and

local authorities

We maintain disciplined, transparent and strategically

aligned engagement with government bodies,

regulators and local authorities – a critical foundation

for operational continuity and long-term value

creation.

Our approach goes beyond compliance. We contribute

to national economic development through fiscal

discipline, job creation and targeted infrastructure

investment, strengthening the ecosystems in which

we operate.

Material needs

We consistently deliver against key institutional

expectations:

– Full and uncompromised compliance with

allapplicable laws and regulations, including

anti-corruption frameworks of the Republic

ofKazakhstan

– Zero-compromise safety culture across flight

operations and workforce well-being

– Strict adherence to corporate governance

standards, business ethics and environmental

responsibility

How we engaged in 2025

– Executive-level meetings and direct

stakeholderalignment

– Participation in regulatory and industry

workinggroups

– Formal correspondence and structured

communication channels

– Continuous dialogue via calls and consultations

– Representation at key industry platforms

andforums

– Independent audits and regulatory inspections

– Timely, transparent and comprehensive reporting

Outcomes of our engagement

– The ongoing implementation of the Strategic

Concept for the Development of the Republic

ofKazakhstan’s Transport and Logistics Potential

to 2030 was supported through participation

inthe Interdepartmental Working Group under

the Aviation Administration of Kazakhstan

– Updates to legislation and industry standards

were supported, aligning regulatory frameworks

with evolving international best practice. Within

the Working Group on Facilitation under the

Aviation Administration of Kazakhstan, work

hasbeen initiated on improving border control

procedures for international flights

– The Group’s interests were protected through

active dialogue on aviation and airport

infrastructure matters at both national

andEurasian levels.

– Achieved successful results in negotiations

withChina, Uzbekistan and other countries,

enabling further expansion of our international

route network

– Signed codeshare partnerships with Air India

and China Southern Airlines to strengthen

co-operation on key routes and boost trade,

tourism and cultural links with India and China

– Simplified legislative procedures related to the

requirement for sanitary certificates for the entry

of new aircraft into service

Link to strategy

Growth Efficiency Excellence

Overview Other informationGovernance Financial statements

38AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY

Sustainability overview

Approach to sustainability

As the demand for air connectivity continues to grow, so too

doesthe imperative to decarbonise aviation in a way that is

bothenvironmentally responsible and economically sustainable.

For AirAstana Group, sustainability is integral to long-term value

creation, operational resilience and responsible growth.

Decarbonisation of the airline industry is widely recognised as

oneof the most complex transitions in the global energy landscape.

With limited near-term alternatives to conventional jet fuel,

meaningful progress requires a pragmatic, multi-pathway approach.

This includes continuous improvements in fleet efficiency and

operations, participation in internationally aligned market-based

mechanisms, such as the Carbon Offsetting and Reduction

Schemefor International Aviation (CORSIA), and the gradual

introduction of lower-carbon fuels.

Sustainable Aviation Fuel (SAF) represents the most credible long-

term solution for reducing lifecycle carbon emissions for the airline

industry. Looking to the immediate future, we have identified a

significant challenge due to the limited availability and high cost

ofSAF, as well as the lack of developed SAF supply infrastructure in

the region, which places a constraint on the pace of decarbonisation

for the airline industry. Navigating these developments requires

disciplined capital allocation, regulatory alignment and close

collaboration across the aviation value chain.

In response, we aim to explore partnerships, advocacy initiatives

and pilot projects related to SAF, while continuing to improve fuel

efficiency, optimise operations and enhance overall environmental

performance.

This is not an easy journey. Progress will be incremental rather

than immediate, shaped by technological readiness, infrastructure

development and policy frameworks. However, Air Astana Group

views this transition as an opportunity to strengthen its business

for the long term, enhancing efficiency, managing risk and aligning

with the evolving expectations of investors, customers and

regulators.

By taking a measured, transparent and forward-looking approach,

we are dedicated to becoming the leading environmentally

sustainable and socially responsible airline within the CIS and

Central Asian regions while continuing to deliver sustainable

returns and preserve the strategic connectivity that underpins

economic growth across our markets.

Alignment with global sustainability standards

In preparing this Annual Report, we have adhered to internationally

recognised frameworks and standards to ensure the quality

andconsistency of our disclosures. Our reporting is in accordance

with the Global Reporting Initiative (GRI 2021) Standards, the

Sustainability Accounting Standards Board (SASB) framework, and

the United Nations Sustainable Development Goals, demonstrating

our commitment to transparent and standardised sustainability

reporting that meets global best practices.

ESG Strategy overview

As the leading airline operator in the Republic of Kazakhstan,

werecognise sustainable development as a strategic priority and

an integral part of our long-term business success. The Board of

Directors and Executive Management fully support the Group’s ESG

Strategy for 2023–2032, which defines our approach to managing

environmental, social and governance impacts while creating

long-term value for shareholders, employees, customers and society.

The ESG Strategy reflects our vision for sustainable development

and serves as a structured action plan to embed ESG principles

across our operations, decision-making processes and business

relationships. By focusing on ESG topics that are material to our

stakeholders, we aim to ensure transparency, accountability and

effective communication of ESG performance both internally

andexternally.

Our ESG Strategy outlines short-, medium-, and long-term

initiatives formanaging the Group’s impacts on the economy,

environment and people, including human rights, across all

operational and corporate activities. In the short term, we are

focused on strengthening governance frameworks, data quality

andinternal ESG processes. Inthe medium term, we aim to scale

sustainability initiatives across operations, procurement and

workforce development. In the long term, our vision is to transition

towards a more resilient, low-carbon, inclusive and responsible

airline business model.

Our business model and strategy are designed to prevent and

mitigate negative impacts, such as environmental emissions

andoperational safety risks, while maximising positive impacts

through job creation, skills development, connectivity and

economic growth. We are increasingly factoring ESG into all

aspects of our fleet planning, training systems, procurement

practices and corporate governance to support responsible growth.

Overview Other informationGovernance Financial statements

39AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Key sustainability developments in 2025 and alignment with the UN SDGs

While we recognise the vital importance of all 17

Sustainable Development Goals (SDGs), we have

identified six priority goals that address the unique

challenges and opportunities within the airline industry.

Building on this strategic focus, we have translated our ESG

commitments into concrete actions and measurable outcomes, which

align with our priority SDGs. The following statements outline our key

activities and achievements, demonstrating tangible progress in

embedding sustainability into our operations, workforce development

and environmental performance:

1. Air Astana Group has updated its Low-Carbon Development

Programme (LCDP), advancing its net-zero commitment from 2060

to 2050 to align with global airline industry targets. The revised

LCDP includes a structured decarbonisation roadmap with clear

near-term milestones and has been independently verified,

confirming its alignment with the Transition Pathway Initiative

methodology and the mitigation objectives of the Paris Agreement.

Material topics: emissions, environmental compliance

Our priority UN SDG:

2. Air Astana Group has initiated the calculation of its Scope 3

greenhouse gas (GHG) emissions, which cover indirect emissions

across its value chain, including emissions from fuel production,

third-party services and supply chain activities. By measuring Scope

3 emissions, the Group aims to gain a comprehensive understanding

of its total carbon footprint, identify key sources of indirect emissions

and develop targeted strategies to reduce environmental impact

inalignment with its Low-Carbon Development Programme and

global airline decarbonisation goals. See the disclosure on page 53.

Material topics: emissions, environmental compliance

Our priority UN SDG:

3. Air Astana Group has joined the IATA Integrated Sustainability

Programme (ISP) – Sustainable Procurement module, aiming to

embed environmental responsibility and social impact into its core

procurement practices. We have also been recognised by the

International Air Transport Association (IATA) for our instrumental

role as a pilot organisation in the development of theISP

Sustainable Procurement Standards. By contributing vital regional

insights from Central Asia and the CIS, we have helped refine a

comprehensive global framework that enables transparent

monitoring of ESG performance. This participation underscores our

commitment to driving industry-wide standards while ensuring that

sustainability remains fundamentally integrated into our operational

and economic framework.

Material topics: emissions, environmental compliance, stakeholder

engagement, procurement practices

Our priority UN SDGs:

4. Air Astana has enrolled in the IATA Environmental Assessment

(IEnvA) programme, a globally recognised environmental management

system for the air transport industry. Through IEnvA, we will adopt

astructured environmental management framework across both

operational and corporate activities.

Material topics: emissions, environmental compliance, energy,

waste management

Our priority UN SDGs:

5. Air Astana Group launched second L3Harris A320 Full Flight

Simulator in Astana. Since L3Harris A320 Full Flight Simulator

Training was launched in the summer of 2023 at the Flight Training

Centre in Astana, all our pilots have attended training and checking,

and completed 7,242 simulator hours during 1,979 simulator

sessions. Additionally, a second L3Harris A320 Full Flight Simulator

was installed at Nur Sultan Nazarbayev International Airport (NQZ)

in autumn 2025 andbecame fully operational in the beginning of

April 2026.

Material topics: employment, aviation safety management

systems, training and development, service quality

Our priority UN SDGs:

6. Air Astana Group employs 20 female pilots. In a sector where

women typically represent only 4% to 5% of pilots, we have

emerged as a leader in Kazakhstan, employing 20 of the country’s

approximately 34 female pilots. Our Ab-Initio pilot cadet programme

has been key to this success: 50% of our current female flight crew

are Ab-Initio graduates. By proactively removing barriers to entry

and promoting equal access to technical careers, we are not only

addressing a global talent gap but also demonstrating the tangible

impact of our early-career initiatives in fostering a more inclusive

and diverse workforce.

Material topics: employment, training and development

Our priority UN SDGs:

GRI 2-6; 2-22; 2-28

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40AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Sustainability governance

The Board of Directors maintains ultimate accountability for the Group’s

sustainable development trajectory, delegating the specialised oversight

of ESG-related risks and strategic issues to the ESG Committee. Toensure

a cohesive approach to multifaceted challenges, the ESG Committee

maintains active cross-functional collaboration with other Board-level

bodies, specifically aligning with the Audit Committee on the mitigation

of ESG risks and with the Nomination and Remuneration Committee

onmatters of governance and human capital.

At an executive level, day-to-day accountability falls under the remit

of the Chief Executive Officer, while the Sustainability Department

serves as the primary engine for the formulation and execution of

our sustainability framework. The operational integration of specific

initiatives is further decentralised to department heads, ensuring that

sustainability objectives are embedded within the functional fabric

ofour organisation.

Our strategic evolution and decision-making framework are anchored

incore sustainability principles, including transparency, accountability,

ethical conduct and meaningful stakeholder engagement. By upholding

fairness, respect for human rights and a rigorous zero-tolerance policy

towards corruption, we ensure these values are systematically integrated

into risk management, strategic planning, investment appraisal and

corporate reporting. This holistic integration reinforces a responsible

business model dedicated to long-term value creation.

Sustainability risks

The ESG Committee maintains oversight of the Group’s sustainability

risk landscape, governed by a Risk Management Policy aligned with

international best practice and the COSO Enterprise Risk Management

Framework. This strategic alignment ensures ESG considerations are

integrated with corporate performance and long-term strategy.

The policy is implemented through the Corporate Risk Management

System (CRMS), a key pillar for governance, internal controls and

organisational resilience. By fostering agility and minimising

disruptions to sustainability goals, the CRMS enables effective

navigation of volatile market conditions and mitigation of adverse

outcomes.

GRI 2-14

Divisional heads of business areas

Develop and implement initiatives.

Board of Directors of Air Astana

The Board takes ultimate responsibility and provides oversight of management actions.

The Board receives quarterly updates on ESG matters.

ESG Committee

The Committee oversees all

ESG-related matters; makes

recommendations to the Board

onthedevelopment and approval

oftheCompany’s ESG Strategy

aswellas analysis and evaluation

of itsimplementation.

Audit Committee

The Committee is responsible for

reviewing ESG-related financial

information and disclosures,

ensuring ESG-related risks are

effectively embedded in the

Corporate Risk Management System,

and overseeing a whistleblower

mechanism for anyviolations or

concerns related toESG practices.

Nomination and

Remuneration Committee

The Committee oversees that the

Remuneration Policy and practices

aredesigned to support the ESG

Strategy and promote long-term

sustainable success.

Senior Management Team

Drives the implementation of sustainability principles as well as ensuring plans are in place for stakeholder engagement

andprogressing initiatives.

Sustainability Department

Oversees development and implementation of sustainability objectives, with the roll-out of initiatives delegated to department heads.

Sustainability governance structure

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41AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Materiality

Our materiality assessment practice is based on a structured and

consistent approach, aligned with GRI guidance. We collaborate

with internal teams and independent experts to define the scope

of the assessment, identify key stakeholder groups, and determine

relevant ESG- and business-related issues across our operations.

We engage with key stakeholder groups through a questionnaire

to identify and better understand the issues they consider most

significant. This engagement informs the development of a list of

potentially material topics. These topics are subsequently evaluated

based on the severity and likelihood of their actual and potential

impacts on the economy, environment and people, including

human rights, as well as their relevance to our long-term business

performance as an airline. In assessing impacts, we consider their

scale, scope and irremediability, alongside stakeholder concern

and potential financial implications.

Based on this analysis, topics are prioritised and a shortlist of

material topics is developed. The final set of material topics is

reviewed and validated by the ESG Committee to ensure alignment

with our strategy, risk management processes and ESG priorities.

In the reporting year, we undertook a review of our material

topics. The review evaluated the relevance and completeness of

the previously identified 19 material impacts on the economy,

environment and people, including human rights, across our

operations and business relationships. Based on the outcomes of this

review and consideration of stakeholder perspectives, no changes

were made to the list of material topics, as these continue to

accurately reflect our significant impacts and sustainability priorities.

The management of material topics is embedded within our

governance framework and business processes. Oversight

isprovided by the ESG Committee of the Board of Directors,

withclear responsibilities assigned to executive management

andoperational functions. Each material topic is supported by

relevant policies, management systems and internal controls,

andmonitored through defined targets. Progress is reviewed

regularly, and corrective actions are implemented where necessary

to ensure continuous improvement, regulatory compliance and

alignment with our strategic objectives.

GRI 3-1; 3-2; 3-3

Materiality matrix

Influence on stakeholder assessments and decisions

Significance of economic, environmental & social impacts

Material topics

Corporate Governance

1 Strategy

2 Ethics and compliance

3 Corporate Governance

4 Stakeholder engagement

Economic

5 Economic performance

6 Innovations and digitisation

7 Procurement practices

Environmental

8 Energy

9 Emissions

10 Waste management

11 Environmental compliance

Social

12 Employment

13 Occupational health and safety

14 Training and development

15 Customer privacy

Specific

16 Service quality

17 Passenger turnover

18 On-time flight performance

19 Aviation safety management systems

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42AIR ASTANA GROUP INTEGRATED REPORT 2025

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SUSTAINABILITY CONTINUED

Responsible business practices

Ethics and compliance

The sustainable development of Air Astana Group operations is

based on openness, accountability, transparency, ethical behaviour,

fairness, respect for human rights and zero tolerance for

corruption. We conduct our operations with integrity and promote

a culture of ethical behaviour and compliance through our

corporate values: HEART (Hospitable, Efficient, Active, Reliable,

Trustworthy) at Air Astana and CHARM (Creative, Happy, Agile,

Reliable, Modern) at FlyArystan. Through these principles, we

support long-term, trusted relationships with our customers,

business partners and stakeholders.

Following our listing on the London, Kazakhstan and Astana

International stock exchanges in 2024, we took the decision to

further strengthen our governance and risk management protocols.

The ensuing independent Compliance Service function was set up

to support the Board of Directors and Executive Management in

fostering a strong compliance culture and helping to mitigate risks

related to ethical conduct and regulatory requirements. We have

continued to enhance our compliance framework throughout the

2025 reporting period.

Our ethics and compliance framework includes these key policies:

– Code of Conduct

– SpeakUp Policy

– Whistleblowing Handbook

– Anti-Corruption Policy

– Policy for Prevention and Resolution of Conflicts of Interest

– Corporate Fraud Prevention Policy

– Data Privacy Policy

GRI 2-23; 2-24; 2-27; 3-1; 3-2; 3-3

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SUSTAINABILITY CONTINUED

Together, these policies set out our expectations for responsible

business conduct, ethical decision-making and compliance with

applicable laws and internationally recognised standards. They

reinforce our zero-tolerance approach to corruption, fraud, conflicts

of interest and other unethical practices, and are aligned with the

principles of fairness, transparency, honesty and accountability.

The policies also reference internationally recognised human rights

and anti-corruption principles and affirm respect for human and

labour rights, including non-discrimination and the prohibition of

forced labour, child labour, human trafficking and other serious

humanrights violations.

The policies set clear expectations for conducting business with

integrity and due care. They include requirements for due diligence

and risk-based assessments, particularly in relation to suppliers,

business partners and other third parties, to prevent corruption,

fraud and conflicts of interest. These commitments apply across

allour activities and extend to our business relationships, with

suppliers, contractors, agents and other partners, including

throughthe inclusion of compliance clauses in contracts.

We actively communicate our policy commitments to employees

and other relevant stakeholders through our corporate website,

internal systems and training programmes. We ensure the

governance and oversight of these through Board-level approval and

clear allocation of responsibilities across the Group. The Compliance

Service provides the Audit Committee and the Board of Directors

with quarterly reports on all activities related to these policies.

Our online Code of Conduct training is an integral part of the

mandatory induction course for all new employees. In 2025, 913

employees successfully completed this training, which included

sections on anti-corruption practices. Of these participants, 903

were based in Kazakhstan, while ten were stationed at

international locations.

During the reporting period, we conducted numerous online

andoffline compliance training sessions for 457 of our employees.

Thetraining activities were tailored to regional specifics and

employees’ working requirements:

– Online training sessions for 70 employees at Aktau, 136

employees at Astana and ten employees at Almaty stations

– Offline training sessions for 234 employees at Almaty

andsevenemployees at Astana stations

The sessions covered the following topics:

– Code of Conduct

– Anti-corruption compliance, including adherence to internal

rulesand applicable legislation

– Reporting violations and whistleblowing channels

– Giving and receiving gifts

– Management of conflicts of interest

– Personal data protection and liability for violations

Through all these measures, we seek to embed responsible

business conduct throughout our operations and relationships,

andto foster a culture of integrity and accountability.

Sanctions compliance

In light of UK, EU, US and UN sanctions related to Russia, we have

implemented and maintain a multifaceted approach to compliance.

This involves continuous monitoring of sanctions updates and

screening of counterparties, beneficial owners and associated

financial institutions for potential exposure. The Sanctions Policy

provides detailed guidance for Air Astana Group functions and

employees for identifying sanctioned entities and restricted goods.

The Compliance Service role has expanded beyond sanctions to

include broader third-party due diligence, covering anti-corruption,

conflict of interest, sanctions exposure and, where applicable,

supply chain transparency obligations, including alignment with

the principles of the UK Modern Slavery Act 2015.

Whistleblowing channels and remediation processes

Given the importance of proactive prevention and early detection,

we maintain a comprehensive whistleblowing facility (Hotline)

open to employees, customers, business partners and other

stakeholders. The Hotline serves as a key mechanism for reporting

potential instances of fraud, corruption, discrimination, unethical

behaviour and other breaches related to our operations. To ensure

confidentiality and anonymity, all reports submitted through

multiple reporting channels are processed by an independent

external operator. The operation of the Hotline is supported by the

Speak Up Policy and the Whistleblowing Handbook, which include

safeguards to protect whistleblowers from retaliation and foster

asafe and trusted environment for raising concerns. Reports may

be submitted in Kazakh, English and Russian languages 24/7.

Relevant reports are referred to the Compliance Service for

assessment and investigation, with corrective actions taken where

misconduct or non-compliance is identified. We are committed

toproviding for or co-operating in the remediation of negative

impacts that it identifies. Where appropriate, this may include

investigations, disciplinary measures, process improvements

andother corrective actions.

The effectiveness of the whistleblowing mechanism is monitored

through case tracking, analysis of trends and oversight by the

Board of Directors. During 2025, the whistleblowing channels

functioned effectively, supporting the reporting and resolution

ofconcerns and reinforcing a culture of transparency and ethical

conduct.

Critical concerns identified through the whistleblowing mechanism

are escalated by the Compliance Service to senior management

and communicated to the Audit Committee and the Board of

Directors to ensure appropriate oversight and decision-making.

Inthe reporting period, all reported concerns were reviewed

andassessed in line with internal procedures. No concerns were

classified as critical during 2025.

GRI 2-25; 2-26

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44AIR ASTANA GROUP INTEGRATED REPORT 2025

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SUSTAINABILITY CONTINUED

To promote awareness and accessibility of whistleblowing channels,

the Compliance Service conducted an ongoing internal awareness

campaign during 2025. This included the use of computer

screensavers displaying Hotline contact details and posters across

Group premises. Hotline contact information emphasising the

availability of anonymous reporting on a 24/7 basis is also available

on the Company’s corporate website to ensure accessibility

foremployees, business partners and other stakeholders.

Thewhistleblowing framework, including the use of an

independent external operator, is periodically reviewed to ensure

itremains effective, trusted and aligned with stakeholder needs.

Seeking advice

In addition to mechanisms for raising concerns, we provide channels

through which employees may seek advice on implementing our

policies and practices for responsible business conduct. Individuals

may confidentially consult the Compliance Service for guidance on

ethical dilemmas, conflicts of interest, anti-corruption requirements

or other compliance-related matters before taking action. Thisadvisory

function supports preventive decision-making, helps mitigate risks

at an early stage and reinforces a culture of integrity by encouraging

employees to seek clarification and guidance when faced with

uncertain or sensitive situations.

Annual assessment of corruption risks

During September and October 2025, a corruption risk assessment

was conducted in FlyArystan JSC in accordance with the requirements

of the anti-corruption legislation of the Republic of Kazakhstan and

the internal regulatory documents. The assessment covered all

structural divisions and included the analysis of key operational

andmanagerial processes exposed to potential corruption risks.

As a result of the assessment, it was determined that most

identified risks fall within the very low or low categories, confirming

the effectiveness of existing control and preventive measures.

The assessment process also included awareness-raising activities

among 29 top and middle managers on applicable anti-corruption

legislation and internal policies, contributing to the strengthening

of an anti-corruption culture and consistent application of

requirements across all levels of management.

In 2025, there were no confirmed incidents of corruption within

AirAstana Group.

The next annual assessment of corruption risks in Air Astana JSC

isplanned for Q1 2026.

Declaration of conflict of interest

As part of our commitment to effective risk management and

ethical governance, we have established formal processes to

prevent, identify, disclose and mitigate conflicts of interest,

including at the Board of Directors level. All employees are

required to declare potential, actual or perceived conflicts of

interest at the recruitment stage, when changing roles, when

personal circumstances change as well as on an annual basis.

Thisprocess is automated to ensure consistency, accessibility and

efficiency. Disclosures are reviewed by the Compliance Service

and, where relevant, escalated to senior management and the

Board of Directors to ensure that conflicts are appropriately

assessed, mitigated or resolved and do not influence independent

decision-making.

In 2025, in line with the Policy for Prevention and Resolution of

Conflicts of Interest, the Compliance Service introduced a

requirement for all employees to submit an annual declaration of

conflict of interest. 5,603 Air Astana employees and 673 FlyArystan

employees completed their declarations. The declaration format

allows individuals to report any potential or actual conflict of

interest, including but not limited to cross-board memberships,

cross-shareholdings with suppliers or other stakeholders, the

existence of controlling or significant shareholding interests and

relationships with related parties or other circumstances that could

affect objectivity.

Data privacy and customer protection

We are committed to safeguarding customer privacy and recognise

that robust data protection is essential within the airline industry.

Our Data Privacy Policy is based on the Law of the Republic of

Kazakhstan on Personal Data and Its Protection and applicable

international privacy requirements, including the European Union

General Data Protection Regulation (EU GDPR). It sets out the

principles governing how we collect, use, store and protect

personal data, reflecting the importance of data protection in

theairline industry. We process personal data only for specific,

legitimate purposes, including ticket booking and payment

processing, baggage handling, delivery of benefits and services

forNomad Club members, customer support, operational

communications and compliance with applicable regulatory

andsecurity requirements.

We inform customers about our data-processing activities through

Privacy Notices published on the Air Astana and FlyArystan

corporate websites. Where required, we use consent mechanisms

in line with the Law of the Republic of Kazakhstan On Personal

Data and Its Protection and applicable international privacy

requirements.

In line with our Data Privacy Policy, we apply the principle of data

minimisation by collecting and using only the information

necessary for the stated purposes, ensuring personal data is

relevant and not excessive. We also seek to maintain data accuracy

and retain personal data only for as long as needed for

operational, contractual or legal purposes.

To protect customer information against unauthorised access,

misuse, loss, or disclosure, we maintain a layered security

approach, including encryption, role-based access controls, secure

systems and networks, and regular information security reviews

and audits. Access to personal data is restricted to authorised

personnel and service providers acting under appropriate

contractual safeguards.

GRI 2-25; 2-26

GRI 205-1; 205-2; 205-3

GRI 2-15

GRI 3-1; 3-2; 3-3; 418-1

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45AIR ASTANA GROUP INTEGRATED REPORT 2025

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SUSTAINABILITY CONTINUED

During 2025, we continued to strengthen our privacy governance

and controls, including privacy management practices and the

extension of contractual compliance clauses covering privacy

obligations. Based on internal monitoring and assurance activities,

there was no evidence of customer privacy being compromised

across the Air Astana Group during the reporting period.

Procurement practices

Our relationships with suppliers and contractors are governed by

applicable laws and regulatory requirements, contractual terms,

internal procurement rules, compliance policies and our internal

control system, as well as the Code of Conduct applicable to all

business partners. In addition, we have a Supplier Code of Conduct

in place, which sets out the key principles and standards expected

of our partners. When selecting and assessing suppliers, we take

into account reputational, legal and compliance risks, including

compliance with applicable sanctions regimes and business ethics

requirements.

ESG-related requirements are being established using a risk-based

approach, taking into account the procurement category. Where

necessary, relevant sustainability criteria are integrated into

technical specifications or tender documentation.

To meet our operational need for high-quality goods and services

delivered in a timely manner, we maintained and further developed

a diversified and resilient supply chain in 2025. We strengthened

long-term relationships with suppliers of all sizes, from local small

and medium-sized enterprises to global multinational companies,

ensuring alignment with our sustainability, ethical and compliance

requirements.

Our procurement processes remain aligned with international best

practice, ensuring transparency, fairness and equal opportunity for

all potential suppliers. The framework is governed by approved

procurement procedures, management standards and strict

compliance requirements, including ethical, social and

environmental criteria. In support of human rights, diversity and

inclusion, our Supplier Code of Conduct requires compliance with

labour laws, prohibition of forced and child labour, non-

discrimination and ethical business practices. Where relevant,

human rights-related requirements are incorporated into contracts.

The launch of our Procurement Portal was a key milestone in 2025,

providing a single digital access point for suppliers and reinforcing

transparent, efficient and fair procurement processes. We are

nowparticipating in the IATA ISP Sustainable Procurement module,

supporting alignment with international airline industry best practice.

We remain committed to sourcing goods and services from local

suppliers within Kazakhstan. By prioritising co-operation with local

businesses, we support socio-economic development while

maintaining cost-effective and reliable procurement.

Our supply-chain and logistics teams demonstrated agility and

resilience throughout 2025, ensuring uninterrupted operations

amid ongoing geopolitical and regulatory challenges. Supply

routes, logistics processes and freight solutions were closely

monitored to ensure compliance with applicable UK, EU, US and UN

sanctions regimes, while maintaining operational efficiency.

Table 1: Proportion of spending on local suppliers

2025 2024 2023

Percentage of the procurement budget used for

significant locations of operation

that is spent

on suppliers local to operations (percentage

ofproducts and services purchased locally) 31% 32% 31%

1 The territory of the Republic of Kazakhstan.

Service quality

Service quality at Air Astana is governed through a structured

framework of internal policies, operational standards, and

continuous monitoring processes designed to ensure consistency

and compliance with international aviation requirements. Oversight

of service quality is typically led by the Service Standards/

Performance and Customer Experience functions, with

accountability shared across operational departments and frontline

leadership to ensure standards are embedded in daily operations.

Performance is closely tracked through a combination of audits,

service checks, and real-time customer experience data, including

passenger feedback and satisfaction metrics. This integrated

approach enables continuous improvement by directly linking

customer insights to frontline service delivery.

During 2025, we continued to evolve the overall customer

experience into a strategically managed, end-to-end capability.

Building on the foundations established in previous years, we

focused on delivering a consistent, human-centred and data-driven

experience across the entire customer journey. This approach

reflects our clear understanding that customer experience is not

shaped by isolated touchpoints, but by the alignment of people,

product, processes and data working together at scale, with

defined ownership at key stages of the journey.

Customer experience remains subject to established governance

processes, including oversight by the Customer Experience Group

chaired by the Chief Executive Officer. This framework supports

ongoing visibility at senior management level and reinforces

customer experience as an area of sustained management attention.

Looking ahead, we will continue to strengthen customer

experience-driven excellence through further alignment of people,

product, processes and data. We are determined to deliver a

resilient, consistent and human-centred customer experience

thatadapts to evolving customer expectations and operational

requirements, reinforcing trust in the Air Astana brand and

supporting sustainable long-term growth.

Read more on Service quality on page 27

GRI 3-1; 3-2; 3-3; 204-1

GRI 3-1; 3-2; 3-3

Recognising our suppliers

and business partners

In October 2025, we hosted the second annual ESG Awards

ceremony alongside an Open Day for partners and suppliers,

recognising contributions to sustainable development and

ESG practices. The ceremony celebrated partners supporting

the implementation of our ESG principles and helped raise

awareness of our ESG initiatives.

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46AIR ASTANA GROUP INTEGRATED REPORT 2025

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SUSTAINABILITY CONTINUED

2025 highlights

Completed IOSA renewal audit with new Risk-Based

Approach (RBI) for Air Astana

Continued applying standardised operational and

management systems for both Air Operator

Certificates (AOCs)

Completed annual on-site EASA Part 145 audit at

Almaty and Astana bases

Renewed EASA Part 147 (Maintenance Training

Organisation) certification

Implemented Peer Support Programme for crew

members

Completed ISO 45001:2018 audits: supervisory audit

for Air Astana and certification audit for FlyArystan

Material issues

Safety Management System (SMS); Occupational health and safety

Policies and guidelines

Internal Policies: Health, Safety and Environmental Protection

Policy; Certificate of Registration for Occupational Health and

Safety Management System; Safety Management Manual;

Compliance Monitoring Manual; Medical Provision in Aviation

Workplace Manual

External regulations and guidelines: ISO 45001:2018; ICAO

Annex 19 and Doc 9859; EASA Part TCO, Part 145/147; Part

CAMO; IOSA ISARPS; Aviation Safety Compliance Policy

Safety Management System (SMS)

Maintaining the highest safety standards is vital and our approach

goes beyond simple compliance with requirements: we cultivate a

culture of safety and look to continuously improve and embrace

international best practice. Our SMS aims to identify the potential

hazards connected with airline operations and mitigate these

risksto acceptable levels. It covers all levels of the organisation

with specific safety programmes for flight operations, cabin

operations, engineering and maintenance, and ground services.

Since operations began in May 2002, we have carried 92 million

passengers safely, with no accidents during passenger or cargo

operations.

Compliance monitoring programme

We have had the EASA Part 145 approval to maintain our fleet

inaccordance with EASA requirements since 2003. The on-site

renewal audit of Line and Base Maintenance took place in Almaty

and Astana in March 2025. As a holder of an EASA Part 145

certificate, we carry out full maintenance services on our own

aircraft and, additionally, provide line maintenance services to

41other air carriers.

We have also been certified as an EASA Part 147 Maintenance

Training Organisation since 2015; the renewal audit was carried

outin December 2025. In December 2015, we became the first

operator audited under the EASA Third Country Operations (TCO)

certification. The authorisation complies with EASA Part-TCO, as

well as with UK TCO authorisation, obtained in 2022. FlyArystan

obtained TCO authorisation in October 2025.

Safety management

GRI 3-1; 3-2; 3-3 SASB TR-AL-540a.1; TR-AL-540a.2; TR-AL-540a.3

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47AIR ASTANA GROUP INTEGRATED REPORT 2025

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SUSTAINABILITY CONTINUED

Our operations comply with appropriate standards of safety and

security regulated by the Aviation Administration of Kazakhstan

(AAK) as state of operator and, under International Civil Aviation

Organization (ICAO) Article 83bis agreement, and the Irish Aviation

Authority (IAA) as state of registry responsible for overseeing

airworthiness.

During 2025, Air Astana underwent a number of external

regulatory inspections and renewals:

– AAK – Certification inspection of Maintenance Repair

Organisation, inspection of Continuing Airworthiness

Management Organisation (CAMO), scheduled and unscheduled

inspections of Maintenance Organisation

– Air Astana underwent AMO renewal approvals from six external

aviation authorities

– Irish Aviation Authorities – conducted Aircraft Certificate of

Airworthiness renewals for 60 aircraft

– EASA – Part 145 and Part 147 renewals audits

– Ramp Inspections – Air Astana Group operations and aircraft

underwent 22 European Civil Aviation Conference (ECAC) SAFA

(Safety Assessment of Foreign Aircraft) and nine ramp

(non-ECAC) inspections

In 2025, Air Astana successfully completed the International Air

Transport Association’s Operational Safety Audit (IOSA) for the tenth

time. The airline was first audited in 2007 and has reaffirmed its

commitment to IOSA safety standards every two years since then.

During the 2025 audit, the documentation and implementation

ofIOSA standards were verified across all aspects of the airline’s

activities. These included organisation and management, flight

operations, operational control and flight dispatch, engineering

andmaintenance, cabin operations, ground handling, cargo

operation and security. The next audit is scheduled in 2027.

Within the internal compliance monitoring programme, we

conducted nearly 250 compliance audits based on IOSA SARPS

andnational regulations. Compliance monitoring is also supported

by membership of the IATA Fuel Quality Pool (IFQP).

Safety programmes

In 2025, our flight-data monitoring analysed more than 99% of

flights. This helps us identify and assess existing operational risks

and take relevant action based on trends and root causes. We have

incorporated elements of evidence-based training (i.e. data and

lessons learnt from both the flight management system and safety

investigation reports) into the training system for pilots, with

positive results.

We continue to encourage operational staff to report hazards and

errors as an important element of our safety culture. Over the year,

more than 4,000 safety reports were registered, enabling us to

maintain an accurate perception of risk.

The Prevention of Use of Unauthorised Substances programme for

safety-sensitive airline activity staff (SSAA) continued during 2025.

The Group’s Fatigue Risk Management (FRM) programme enables

Crew Planning & Control to estimate the alertness of crews and

make necessary adjustments to rostering based on trends.

Inaddition, flight and cabin crew increasingly used the self-

assessment tool, Crew Strain Application (CSA) to provide feedback

on fatigue levels, workload, roster and rest conditions, particularly

during the busy summer months. Pairing Optimiser was

implemented in April and Roster Optimiser was introduced in

October. In 2025, we renewed our participation in the IATA Fatigue

Management Task Force to gain international exposure and

contribute to standardised fatigue solutions for the airline industry.

We continued to promote efficient communication between

departments and stakeholders on the management of change

(MoC) and relevant risk assessment (RA). We adopted a new MoC

module in May to enhance functionality and address the

limitations of the previous software module. The most common

RAs carried out in 2025 related to new destinations, changes in

operational processes (including lithium batteries and body

cameras), production risks (including a B767 C-check in Astana),

aerodrome changes, a new line maintenance provider, conflict

zones and Global Navigation Satellite System (GNSS) signal loss.

Overview Other informationGovernance Financial statements

48AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

We continued enhancing the Wildlife Hazard Management Plan in

2025, focusing on Almaty, Astana and Shymkent airports. The

expert reports made recommendations for each airport on habitat

control and data management.

However, the bird strike rate increased by 21% compared with

2024 and although the season is over, the high incident rate

remains a concern. The project involving contracted UK experts

aims to increase the effectiveness of prevention programmes

atKazakhstan airports and is planned to continue in 2026 with

particular focus on western Kazakhstan, where the most significant

increase in bird strikes was recorded.

We are a major contributor to a number of international safety

organisations and programmes, set up to enhance safety and

operational efficiency, including IATA Global Aviation Data

Management. Through our membership of the Association of Asia

Pacific Airlines, we participate in safety and security workgroups,

which allows us to stay abreast of the latest technology,

innovations and processes, while also ensuring our safety

programme managers interact with leading professionals.

Similarly, membership of Flight Safety Foundation (since 2004)

stimulates an environment conducive to improvement.

In September 2025, we launched the Peer Support Programme

(PSP) for our crews. The PSP is a structured system that allows a

flight or cabin crew member to seek confidential help for issues

related to mental health, well-being or life stress. Fundamental to

the programme are pilot and cabin peer volunteers – fellow crew

members who have been trained in basic listening and coaching

skills to assist their colleagues. The programme has been structured

and is supported by an international network coordinated by

HFHuman Factor GmbH and Stiftung Mayday (Germany). Following

the selection and specialised training of our peers inDecember

2025, the programme will be fully integrated and available to all

crew members in 2026, marking a significant milestone in our

commitment to crew welfare and safety culture.

In October 2025, we hosted our 9th Regional Safety Seminar,

titled‘Safety Leadership: Enhancing Performance’ to promote

andencourage safety within the region. The seminar focused

onavariety of topics, including positive safety implementation,

proactive measures, investigation updates, leadership issues and a

robust safety culture. It was attended by representatives from nine

countries, with 19 speakers and more than 225 participants from

other airlines, aircraft manufacturers, international organisations

and regulators.

Table 2: Accident and safety management

2025 2024 2023

Aviation accidents 0 0 0

Governmental

enforcement actions

ofaviation safety

regulations 0 0 0

Occupational health and safety

Safety is a key objective for the Group, and we adhere to high

standards and aim for continuous improvement in all our daily

business activities. Our Occupational Health and Safety (OHS)

system is based on best practices and international standards,

andcomplies with all provisions/applicable legislative requirements

of the Labour Code of the Republic of Kazakhstan and other

legislative documents.

In August 2025, Air Astana passed the supervisory audit conducted

by the Intertek International Kazakhstan certification body. The audit

team concluded that the top management processes are generally

working well in compliance with ISO 45001:2018. FlyArystan received

a separate certificate of compliance with the requirements of the

ISO 45001 standard.

We carried out a range of other health and safety activities during

the year: 146 employees undertook certified online training in

health and safety; 1,266 employees were trained in industrial

safety; 16 line managers were trained in the NEBOSH leadership

excellence course. We organised annual professional health

check-ups for employees working in harmful or hazardous

conditions and updated health and safety instructions by

occupation and type of activity.

In accordance with Order No. 20 dated 31 January 2024 of the

Ministry of Labour and Social Protection of the Population of the

Republic of Kazakhstan, Eurasia Insurance Company reimbursed

approximately USD 24,000 (6% of total insurance payouts) for

preventive and rehabilitation measures. The funds were allocated

to occupational health and safety, industrial safety, and first aid

training for employees.

GRI 3-1; 3-2; 3-3; 403-1; 403-2; 403-3; 403-4; 403-5; 403-6; 403-9

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49AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

We continue to work on the continuous improvement of special

clothing quality. In 2025, we began issuing demi-season boots

(safety shoes) with reinforced toe caps to all employees in

operational departments, as well as caps with the updated design.

We also issued updated summer suits to all operational employees,

improving the fabric wear resistance and ergonomic design.

We conducted alcohol and drug testing aimed at preventing the

use of unauthorised substances in the workplace among

operational personnel, including flight and cabin crew members,

engineering and maintenance, and ground operations staff across

all Kazakhstan regions and at international stations. In 2025, our

team conducted a total of 6,268 tests across the Group: 5,026 for

AirAstana (alcohol tests – 4,115; drug tests – 911) and 1,242 for

FlyArystan (alcohol tests – 988; drug tests – 254). The programme

covered all safety-sensitive operational roles across the Group.

Fire safety

All newly hired employees complete an introductory fire-safety

briefing, followed by an initial workplace-specific session. These

briefings are repeated annually and supplemented with targeted

ad hoc briefings as needed.

This year, we conducted a basic fire-safety training course and

issued three-year certificates to 157 employees. We also carried

out 14 fire evacuation drills across our facilities. All our facilities are

equipped with automatic fire alarms and primary fire extinguishing

equipment, including powder and carbon dioxide portable fire

extinguishers, fire shields and hydrants. Automatic fire-

extinguishing systems – such as gas, foam, deluge, sprinkler and

powder – are installed in key areas like hangars, server rooms,

archives and warehouses. We ensure that contractors who perform

maintenance of primary fire-extinguishing equipment and

automatic fire-safety systems doso in accordance with approved

schedules. We passed external fire-safety audits in Astana in May

and in Almaty in October.

We continue our commitment to the global Vision Zero initiative,

which focuses on employee safety, health, and well-being through

seven guiding principles:

1. Take leadership – demonstrate commitment

2. Identify hazards – control risks

3. Define targets – develop programmes

4. Ensure a safe and healthy system – be well organised

5. Ensure safety and health in machines, equipment

andworkplaces

6. Improve qualifications – develop competence

7. Invest in people – motivate by participation

Over the past two years, we surveyed managers to verify

compliance and the effective application of Vision Zero practices,

ensuring high occupational safety standards.

In December 2025, we launched online training modules on

occupational safety culture for all employees, covering workplace and

transport safety. Developed by our Health, Safety and Environment

(HSE) and Transport departments, these modules are available in

Kazakh, Russian and English for both office and operational staff.

OHS leadership is demonstrated through discussions on health

andsafety issues at monthly management meetings chaired by

the Chief Executive Officer. A representative from the HSE

Department regularly participates in SMS training for line

managers and responsible supervisors.

Overview Other informationGovernance Financial statements

50AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

We manage risk control through regular updates of the hazard

work processes and the introduction of new or modernisation of

old equipment. An important part of identifying risk is to analyse

incidents and accidents at workplaces. The risk assessment is carried

out according to the approved procedure, which prescribes the

riskassessment methodology. After an update by the responsible

department, the hazard register and risk assessment are co-ordinated

by the HSE Department. The quality of the assessment and

approval is confirmed during external and internal audits.

Our annual safety awards, including the OHS Recognition Award,

celebrate employees who have made outstanding contributions

toour safety culture, knowledge and skills. At the end of 2025,

13nominees were honoured for their exceptional commitment.

We held safety forums for the Ground Services and Maintenance

departments, featuring cross-departmental speakers to broaden

employee understanding and competency. In addition, we held

meetings for motor transport drivers to raise awareness of safety

in different weather conditions and to increase employee motivation

through participation. We organised an online forum for the Inflight

Services Department, with presentations on priority issues delivered

by the HSE Department.

During 2025, FlyArystan JSC implemented a comprehensive set of

measures aimed at improving working conditions and workspaces.

Office areas were expanded and modernised; furniture, office

equipment, and engineering systems were upgraded; and

additional areas for dining and meetings were created. In both

theInflight and Ground Services departments, systematic efforts

continued to enhance employee comfort, support staff

development, and incorporate employee feedback, including

updates to uniforms, the introduction of electronic task

assignments, and the implementation of training programmes.

Employee engagement at FlyArystan from autumn 2022 to spring

2025 has remained consistently high, ranging between 3.99 and

4.26. After a temporary decline in 2023, the indicator recovered

and has remained above 4.2, while the spring 2025 score (4.18)

continues to reflect a high level of employee trust and engagement.

Overall, the trend confirms the stability of employee engagement

and the effectiveness of the company’s management and

HRinitiatives.

Reported accidents

In 2025, the HSE Department received 259 OHS reports summarising

incidents, hazardous working conditions, dangerous actions and near

misses. The most common types of work-related injuries reported

were occupational bruises and physical traumas. These incidents

primarily occurred during core operational activities, including

ground handling, aircraft maintenance and in-flight cabin services.

Table 3: Reported accidents

2025 2024 2023

Number of incidents 47 47 41

Number of accidents 29 30 29

Number of employees 7,211 6,546 6,499

Total accident rate (TAR) 4.02 4.58 4.46

Lost time injury

frequencyrate (LTIFR) 2.86 3.27 3.24

Fatal injury rate (FIFR) – – –

Accident severity ratio 34.14 39.39 4 0.17

Occupational morbidityratio – – –

Our OHS Committee includes all employees at Chief Executive

Officer-1, -2, -3 levels due to their high level of responsibility in

decision-making. Employees at other levels contribute to the decisions

made by the Committee by completing health and safety surveys.

In addition, they take part in internal audit procedures required

within the occupational health and safety management system.

We have implemented an Integrated Quality & Safety Management

System (IQSMS) to process occupational health and safety requests

promptly, while more significant issues are discussed at OHS

Committee meetings. The Committee holds monthly sessions with

a primary focus on working conditions. Our management places

strong emphasis on improving employees’ working conditions.

However, the increased number of OHS reports in theIQSMS

indicates the need for enhanced employee communication and

training. In addition, the Company currently does not maintain

records of the number ofcases of severe reprimands and dismissals

for violations ofoccupational safety andhealth requirements.

Mental health

In 2021, we launched mental health support services for our

employees, which have been greatly appreciated. Sessions are

conducted by practising analytical psychologists and psychotherapists.

In 2025 alone, more than 1,200 sessions were held. Providing

access to psychological support helps employees manage stress,

conflict and other emotional challenges, directly benefiting their

productivity, motivation and overall well-being. Recognising

thatwork can be demanding, our approach fosters a healthy

andsupportive environment where employees can achieve

theirprofessional goals. This reflects our commitment as a

caringemployer and helps strengthen our bond with employees.

We actively promote these services, ensuring employees are

guaranteed confidentiality. Managers recommend the services

andemphasise their importance for well-being and professional

development.

Overview Other informationGovernance Financial statements

51AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

2025 highlights

Conducted analysis of physical climate risks and

transitional climate risks in accordance with IFRS S2

(Climate-related Disclosures) standards

Ensured compliance with the requirements of the

Ecological Code of the Republic of Kazakhstan

Provided training for internal auditors on the ISO 14001

Environmental Management Systems standard for

occupational health and safety

Material issues

Emissions; Energy; Waste management; Environmental

compliance

Policies and guidelines

Internal policies: Health, Safety and Environmental

ProtectionPolicy

External regulations and guidelines: ICAO Annex 16,

VolumeIV CORSIA

Approach

We are steadfast in our commitment to minimising our

environmental footprint and advancing initiatives that mitigate

anthropogenic climate change. To this end, we have made

substantial investments in our environmental protection

management system, which adheres to rigorous local and

international standards. This robust framework facilitates the

optimised use of natural resources and ensures continuous

monitoring and control of our operational impacts.

Central to our climate strategy is the Low-Carbon Development

Programme (LCDP) 2023–2032, a core component of the Group’s

broader ESG Strategy. We are committed to achieving net zero by

2050. This realignment is in accordance with the International Civil

Aviation Organization (ICAO) Assembly goals.

Operational efficiency remains a cornerstone of our environmental

agenda. In the air, our advanced fuel-efficiency procedures optimise

jet fuel consumption to significantly minimise greenhouse gas (GHG)

emissions, while on the ground, we promote resource-efficient

practices throughout our corporate offices. We maintain aculture

of transparency and accountability by regularly disclosing our

operational and emissions data, reinforcing the strategic importance

of environmental responsibility across the organisation. In addition,

we actively engage our workforce through specialised ESG training,

ESG communications on our internal channels and environmental

initiatives, fostering a high level of awareness and ensuring that

sustainability is integrated into our corporate DNA.

Environmental impact management

GRI 3-3; 302-1; 302-2; 305-1; 305-4; 305-5; 305-7; 306-2; 306-5

Overview Other informationGovernance Financial statements

52AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Emissions reduction

Air travel contributes to accelerating climate change by releasing

GHGs. We aim to reduce carbon emissions classified as either

direct (Scope 1) and indirect (Scopes 2 and 3) under the Greenhouse

Gas Protocol. Scope 1 are GHG emissions from sources we own or

operate. Indirect emissions are emissions that result from our

activities but are emitted from sources owned or controlled by

another company.

In addition to continuously monitoring our GHG emissions, our

efforts to reduce them include safely increasing fuel efficiency,

making technological improvements and using fuel-efficient

aircraft that emit less CO

We also use operational methods such as route planning, reducing

aircraft weight and training pilots in fuel-efficient flying. Scope 1

direct emissions constitute the majority of our total GHG emissions,

mainly from the combustion of jet fuel.

To ensure transparency and accuracy, we have developed CO

Emissions Monitoring and Reporting Instructions that prescribe

how these emissions are accounted for. All emissions data are

verified by independent accredited bodies specialising in

environmental verification, certification and auditing:

– EU ETS – European Union Emissions Trading System

(includesallflights within the European Union)

– UK ETS – the United Kingdom Emissions Trading Scheme

(includes all flights within the UK)

– CORSIA – Carbon Offsetting and Reduction Scheme for

International Aviation (includes international flights)

– GHG Protocol – a comprehensive global standardized

frameworks to measure and manage greenhouse gas

(GHG)emissions

Emission factors and global warming potential (GWP) rates

areapplied from methodologies of the EU ETS, UK ETS, CORSIA

andGHG Protocol. We apply the operational control approach

toconsolidate GHG emissions.

Currently, we account for Scope 1, Scope 2 and Scope 3 GHG

emissions. Our Low-Carbon Development Programme (LCDP)

for2023–2032 sets targets to minimise CO

emissions from our

operations; these targets were updated in 2025, and support our

goal of achieving net-zero emissions by 2050. These include a

commitment to achieving at least 5% Sustainable Aviation Fuel

(SAF) usage by 2030, subject to market availability. The Group’s

strategy ensures that its emission intensity remains aligned with

the 1.5°C global warming pathway through to 2030.

We are proactively monitoring evolving regulatory landscapes,

specifically the ReFuelEU Aviation and UK SAF mandates, which

require minimum sustainable fuel blends for departures, starting

at2% in 2025 and rising significantly towards 2030. To ensure

operational compliance and mitigate the risks of non-compliance

in these key markets, we have aligned our strategy with the

Association of Asia Pacific Airlines (AAPA) resolution. This

commitment has been integrated into our updated LCDP, ensuring

that our fleet remains prepared for shifting international standards

while supporting the industry’s long-term transition to net zero.

GRI 3-1; 3-2; 3-3; 305-1; 305-5 SASB TR-AL-110a.2

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53AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

GHG emissions

An increase in both domestic and international flights in 2025

inevitably led to an overall increase in our CO

emissions – by 13%.

This increase was mainly driven by higher fuel consumption

associated with increased operational activity.

Scope 3 indirect emissions from value chain

Air Astana Group calculates and reports its Scope 3 greenhouse

gas emissions in accordance with the GHG Protocol Corporate Value

Chain (Scope 3) Accounting and Reporting Standard. Scope 3

emissions comprise indirect greenhouse gas emissions occurring

inthe upstream and downstream value chain from sources not

owned or controlled by the Group.

The Scope 3 greenhouse gas inventory covers the same

organisational boundary as the Group’s consolidated financial

statements. The Group applies the operational control approach in

accordance with the Greenhouse Gas Protocol. The reporting

boundary includes all operations under the operational control of

Air Astana Group, including its 100% owned low-cost subsidiary

FlyArystan. Scope 3 emissions are calculated for activities across

the value chain associated with these operations.

Table 4: Emissions

2025 2024 2023

emissions intensity

(tonnes CO

per RPK)

0.078 0.078 0.076

emissions intensity

(tonnes CO

per ASK)

0.064 0.065 0.063

Revenue tonne-kilometres

(RTK) 1,735,900 1,547,614 1,405,009

Scope 1 GHG emissions

(tonnes of CO

) 1,414,911 1,252,773 1,115,142

Scope 2 GHG indirect

emissions (tonnes of CO

) 5,169 5,120 5,660

Scope 3 GHG indirect

emissions (tonnes of CO

) 368,936 352,399 –

Company-specific metric

(seat kilometres)

22,032,718 19,322,854 17,689,651

Company-specific metric

(revenue kilometres)

18,225,196 16,128,485 14,646, 227

Passenger load factor (%) 82.72 83.47 82.80

Number of departures 65,676 60,387 55,068

Average age of fleet 6.4 5.9 5.3

1 CO₂ emissions intensity (tonnes CO₂ per RPK and per ASK) is calculated based

on Scope 1 greenhouse gas emissions.

Table 5: Nitrogen oxides (NOx), sulphur oxides (SOx),

andothersignificant air emissions

Pollutants 2025 2024 2023

Sulphur oxides, tonnes 5.15 4.39 3.96

Nitrogen oxides, tonnes

11.60 10.58 9.68

Carbon oxides, tonnes

15.05 13.03 11.63

Particulate matter

0.57 0.82 0.44

Other substances, tonnes

3.44 2.96 3.61

Emissions of greenhouse gases and other pollutants are

categorised and reported in line with the Ecological Code of the

Republic of Kazakhstan, using nationally approved calculation and

reporting methodologies.

No leaks or emissions to the environment were recorded in 2025.

Therefore, the number and total volume of leaks or emissions are zero,

and there were no environmental impacts from accidental releases.

Energy management and efficiency

In 2025, our total energy consumption amounted to 19,455 thousand GJ,

encompassing aviation fuel, diesel, heating, electricity and other

auxiliary sources. To ensure the highest level of accuracy and

cross-border comparability, we calculate consumption data using

methodologies aligned with the Intergovernmental Panel on Climate

Change (IPCC) Guidelines, with conversion factors derived from IPCC and

other internationally recognised standards. Although the current energy

mix does not yet include renewable sources, we are actively evaluating

alternative energy solutions and fuel-switching opportunities.

Table 6: Energy consumption

2025 2024 2023

Electricity (GJ) 16,164 15,473 14,958

Heating (GJ) 6,525 6,803 28,615

Energy intensity

(thousandGJ) 2,698 2,625 2,367

Total fuel consumed

(thousand GJ) 19,432 17,159 15,358

Alternative fuel

consumed(%) 0 0 0

Sustainable fuel

consumed(%) 0 0 0

In 2025, our indirect greenhouse gas emissions classified as

Scope2 totalled 5,169 tonnes of CO

. These emissions are primarily

driven by the consumption of purchased electricity and heating

across our ground facilities. Given the carbon-intensive nature of

airline operations, Scope 2 emissions represent a non-material

portion of our total carbon footprint; however, we continue to

monitor and report these figures to ensure comprehensive

transparency and to identify further opportunities for energy

efficiency within our administrative and technical infrastructure.

GRI 305-1; 305-2; 305-3; 305-4; 305-7

SASB TR-AL-110a.1; TR-AL-000.A; TR-AL-000.B;

TR-AL-000.C;TR-AL-000.D;TR-AL-000.E; TR-AL-000.F

GRI 3-3; 302-1; 302-3; 302-4 SASB TR-AL-110a.3

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54AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Waste management

Waste management is governed by the Company’s internal Waste

Management Procedure, reflecting our commitment to responsible

waste handling and continuous reduction of waste generation. The

Company operates a certified management system aligned with

ISO 45001, which also incorporates environmental aspects within

operational processes. Operational departments are responsible for

proper waste segregation and handling, while oversight, monitoring

and reporting are coordinated by the Health and Safety

Department in accordance with applicable environmental

regulations and internal procedures.

Our waste-management programme is based on reduction,

recycling and disposal, using third parties as necessary. By involving

employees and customers in initiatives to reduce and recycle waste,

we have helped raise awareness and increase such activity, both

on our aircraft and in our offices.

Our waste-related impacts arise from operational activities including

aircraft operations, onboard services, aircraft maintenance, office

work and ground handling. Key inputs include paper products,

PETplastics, packaging materials, catering supplies and technical

consumables.

These activities generate:

– Non-hazardous waste: paper, plastics, municipal waste

– Hazardous waste: maintenance-related residues and technical

consumables

Through employee-driven initiatives and expanded recycling across

stations and offices, we increased engagement and awareness

while recycling waste in 2025. This initiative reduced usage of

small plastic items that are difficult to sort and often end up

inlandfill.

When waste generated by our own operations is managed by

athird party, we evaluate the service provider through formal

selection and monitoring processes. These processes include

reviewing the contractor’s licences, certifications, environmental

compliance records and operational procedures. Contracts include

clear requirements for proper collection, transportation, treatment

and reporting of waste. We periodically request documentation

from the third party to verify compliance with contractual

obligations and national legislation.

Table 7: Waste directed to disposal

Waste disposal in Group’s

sites (Almaty, Astana, Aktau)

2025 2024 2023

Hazardous waste, tonnes 64.02 17.86 11.79

Incineration

(with energy recovery) – – –

Incineration

(without energy recovery) 42.54 5.34 –

Landfilling 21.48 12.52 –

Other disposal operations – – –

Non-hazardous waste, tonnes 2,832.08 2,924.69 2,984.23

Incineration

(with energy recovery) – – –

Incineration

(without energy recovery) – – –

Landfilling 2,790.06 2,887.85 2,944.78

Other disposal operations 42.02 36.84 39.45

Total, tonnes

2,896.10 2,942.55 2,996.02

1 The increase in hazardous waste is driven by a higher number of C-checks

conducted in Astana, as well as an increased disposal rate per kilogram.

Disposal of hazardous and non-hazardous waste is carried out by licensed

third-party contractors off-site, in accordance with applicable environmental

regulations.

2 Waste data is compiled in line with the Group’s internal procedures and

accounting principles. Volumes are recorded based on contractors’ weight

tickets, consolidated at the station level, and verified by responsible

departments, ensuring completeness and consistency of data.

GRI 3-1; 3-2; 3-3; 306-1; 306-2; 306-4; 306-5

The Cap Collection Challenge

inAirAstana Group

The Cap Collection Challenge was a flagship employee-driven

sustainability initiative in 2025, engaging teams across ten

stations nationwide: Aktau, Atyrau, Uralsk, Aktobe, Almaty,

Shymkent, Astana, Kyzylorda, Ust-Kamenogorsk and Semey.

By December, employees had collected 437 kg of plastic

caps, with Aktau, Almaty and Astana leading the effort.

Overtime, the initiative became a regular habit, integrated

into team-building activities and supported by employees

bringing caps from homes, offices and public spaces. All

collected caps were consolidated in Aktau andofficially

weighed by a recycling partner, ensuring transparency and

traceability. The challenge demonstrated how a simple action

can unite employees and help embed sustainability into our

corporate culture.

In recognition of their engagement, the most active stations

were awarded letters of appreciation, diplomas and

commemorative prizes.

The caps were transferred to Taza Likee in Aktau, which has

collected more than 5 tonnes of plastic caps and donated a

charitable cheque to the Ana Mahabbat Foundation.

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55AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

SUSTAINABILITY CONTINUED

Table 8: Waste diverted from disposal

Waste type

Tonnes

diverted Recovery operation

Hazardous 42.54 Third-party recycling/recovery

Non-hazardous 44.95 Recycling (batteries, tyres, paper, PET)

Environmental compliance

We comply with all relevant environmental laws and regulations.

The requirements of the Ecological Code came into force in 2021,

and we incorporated them into our environmental protection

management system. No significant fines or penalties were issued

for non-compliance with environmental laws and regulations over

the past five years.

Table 9: Total expenses for environmental protection

Expenses (USD) 2025 2024 2023

Environmental

protection 128,238 142,734 129,178

Negative impact

ontheenvironment 260,564 2,166 379,925

Hazardous waste

disposal 18,112 11,981 1,951

Transfer of household

waste 81,451 90,011 86,831

GRI 3-1; 3-2; 3-3

‘Art Above the Clouds’ Travel Kits

Air Astana has introduced a new collection of economy-class

travel kits, created in collaboration with Kazakhstani artists.

Combining comfort, cultural identity and sustainability, the kits

are designed to enhance passengers’ journeys while reflecting

the airline’s commitment to excellence and care.

Five artists contributed to 14 unique designs, each capturing

their vision of Kazakhstan’s landscapes, traditions and folklore.

The kits are made from eco-friendly materials, including RPET

fabric derived from recycled plastic bottles, and contain a

bamboo toothbrush, a kraft-paper pen, a sleep mask and socks

made from recycled fibres. Inflatable neck pillows included in

the kits are provided on flights departing from Kazakhstan and

may be kept for use on the flight back.

These kits are offered on international flights longer than three

hours, underscoring Air Astana’s dedication not only to

passenger comfort but also to environmental responsibility.

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56AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

2025 highlights

As part of the IPO launch, management developed

anemployee share option programme. All employees

who met the programme’s criteria became

shareholders in February 2025

In 2025, our employee engagement reached its

highest level since measurements began in 2016,

scoring 4.2 out of 5, with 3,791 employees

participating in the annual survey

Established a comprehensive internal communications

framework to enhance employee engagement with

our business strategy

Material issues

Employment; Training and development

Policies and guidelines

Internal policies: Group strategy; corporate goals and

values;employment terms and conditions; Code of Ethics;

anti-corruption policies; Conflict of Interest Prevention and

Management Policy; Internal Labour Regulations;

RemunerationPolicy

External regulations and guidance: labour and tax codes

ofthe countries where our employees are based; collective

agreements with trade unions; legislation on social security,

occupational health and safety, and personal data protection;

IATA standards; EASA regulations; national standards; ICAO

regulations

As one of the major employers in Kazakhstan,

wepride ourselves on attracting and retaining

someofthe best talent, thanks to our strong focus

onrecognition, development and equality. In 2025,

wecontinued to improve operational excellence

through investing in our people – particularly in our

training programmes and employee engagement,

underpinning our continued success in providing

best-in-class services.

Employees

Approach

The long-term sustainable success of our business depends on

theexpertise, skills and motivation of our employees. As a socially

responsible organisation, we recruit, appraise and reward employees

based on merit and help them develop to their maximum potential.

Our workplace environment – based on our corporate HEART

(AirAstana) and CHARM (FlyArystan) values – isone where recognition,

development and equality all thrive toensure that we attract and

retain talented people. We operate our business with the highest

standards of integrity and ethics, which is also reflected in the

transparency and fairness of our recruitment process.

Responsible employer

GRI 2-7; 2-8; 3-1; 3-2; 3-3; 401-1; 401-2; 401-3

SUSTAINABILITY CONTINUED

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57AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

Employment

In 2025, we maintained a strong focus on recruiting for key

operational roles, including pilots, engineering, cabin crew and

ground service staff. We continued recruiting cadets for Ab-Initio

pilot and apprentice aviation technician programmes and resumed

the selection process for flight attendant candidates.

As part of our employer brand enhancement efforts, an internship

programme was successfully continued in 2025, welcoming over

630 interns across a wide range of departments. The largest

number of interns joined Ground Services, with additional

placements in Finance, IT, HR, Marketing, Procurement, Flight

Operations, Logistics and other business functions. The programme

provided participants with valuable hands-on experience and

supported the development of a strong pipeline of future talent,

with approximately 67% of interns successfully transitioning into

employment with us.

To raise awareness of aviation careers and attract talent, we

partnered with educational institutions across Kazakhstan’s major

regions. In 2025, we organised more than 300 online and in-person

engagement activities, including career days, university lectures,

information sessions and site visits. These initiatives led to a

significant increase in applications for pilot and aviation technician

training programmes, while also supporting a sustainable

long-term talent pipeline for other operational and corporate roles.

Following President Tokayev’s declaration of 2025 as the Year of

Working Professions, we participated in the City of Working

Professions festival in February at Astana’s Expo Centre. Our

‘Aviation House’ pavilion offered masterclasses and flight simulator

experiences, introducing visitors to careers as pilots, cabin crew

and maintenance specialists.

In July, we co-organised the Tugan Elge Sayakhat children’s camp

with the Samruk-Kazyna Trust Foundation to promote working and

engineering professions among the younger generation. Over 400

children – including those from socially vulnerable backgrounds

– participated in guided tours and introductory sessions at the Air

Astana Academy.

Our global pilot recruitment strategy continued in 2025, attracting

candidates from Kazakhstan, the CIS, Europe, Latin America and

other regions.

At the same time, the low representation of women in aviation

remains a global challenge. Worldwide, women account for only

around 4% to 5% of pilots and approximately 3% of aircraft

maintenance engineers, reflecting long-standing industry-wide

barriers to entry rather than company-specific factors. This is a

challenge that we face alongside the rest of the global aviation

market.

This global context is also reflected at a national level, although

we are making progress in addressing it. In Kazakhstan, there are

approximately 34 female pilots, 20 of whom are employed by Air

Astana. Notably, ten of our pilots are graduates of our Ab-Initio

pilot cadet programme, demonstrating the tangible impact of

early-career development initiatives on improving access to the

profession. In response, we actively promote equal access to the

profession, raising awareness of careers in aviation.

We currently have a number of female cadets undergoing training

with us, reflecting our commitment to equal opportunities. Three

cadets are enrolled in the Ab-Initio programme’s flight school and

will be joined by a further two candidates this year. In our

apprentice programme, one new cadet started in 2025, joining

three female colleagues who are continuing their training.

Outreach and engagement activities

100+

Total educational institutions attended

Online open sessions

Open houses in Kazakhstani regions

(including Almaty andAstana)

Regions visited

(Atyrau (2x), Shymkent (2x), Aktau (2x),

Kostanay, Oral/Uralsk, Ust-Kamenogorsk,

Karaganda,Kyzylorda,Pavlodar, Aktobe, and Semey)

GRI 3-3; 401-1

SUSTAINABILITY CONTINUED

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58AIR ASTANA GROUP INTEGRATED REPORT 2025

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During these sessions, participants are introduced to the profession

of a pilot and engineers, the Ab-Initio and apprentice selection

process, training requirements and career development opportunities.

The events are open to all candidates and focus on providing a

clear and realistic understanding of the professions.

These efforts reflect our ongoing commitment to attracting and

developing top talent, ensuring our continued growth and success.

In 2025, the Group employed 7,211 people (2024: 6,546). We hired

a total of 1,556 new employees during the year: 1,054 at Almaty;

495 across other Kazakhstan cities; and seven at international

stations. The gender split across new employees was 922 women

and 634men.

In addition to permanent employees and interns, the Group

engages 280 specialist contractors who work in close co-operation

with the HR Department and provide services including cleaning,

security, transportation services (shuttle drivers), as well as

editorial and photography services.

The Group’s workforce remains relatively young, with more

than70% of employees younger than 40. In 2025, employees

weredistributed as follows:

– Under 30 – 3,026

– 30–50 – 3,642

– over50 – 543

The turnover rate from the total number of employees was 12.30%

(2024: 12.31%), which is within the normal range. A total of 887

employees left the company during the year (2024: 806).

Table 10: Turnover rate

By location 2025 2024

Almaty 611 529

Other Kazakhstan cities 274 271

International stations 2 6

By gender 2025 2024

Women 508 449

Men 379

357

By age 2025 2024

Under 30 444 413

30–50 370 326

Over 50 73 67

Diversity and equal opportunities

We promote diversity and equal opportunity in the workplace,

believing that every employee should be able to fulfil their

potential, regardless of gender, age, nationality, religion or physical

characteristics. We consider that cultural diversity and success go

hand in hand: different nationalities bring different perspectives

and experiences, broadening our thinking and ideas, which are

valuable assets to the Group.

We provide equal opportunities for men and women regardless

ofage or nationality, creating a truly diverse workforce of highly

skilled people across many countries and continents. We employ

4,291 women and 2,920 men, from different nationalities and

ethnic groups, with diverse backgrounds, faiths and beliefs.

Thisprovides a stimulating and fair working environment for

everyone. We believe strongly that gender and diversity should

not be barriers to career progression within the Group. At the

senior management level, comprising 47 people, the gender

splitcurrently is 49% female and 51% male.

Remuneration for each category of employees is set regardless

ofgender. All employees, regardless of gender, are entitled to

parental leave in accordance with the Labour Code of the Republic

of Kazakhstan.

GRI 3-3; 401-3; 406-1

SUSTAINABILITY CONTINUED

Highlights

Pilot training programme

296

Graduates since the start

ofthe programme

Cadets in 2025

Cadets sent to flight school

in 2025

+40

Planned growth in 2026

Apprentice programme

Apprentices since the start

of the programme (in 2017)

Significant growth in the

number of cadets in 2025

Graduates as of 2025

Сabin crew

395

Flight attendants

hiredin2025

Ground Services

265

Ground Services

cadetshired in 2025

Overview Other informationGovernance Financial statements

59AIR ASTANA GROUP INTEGRATED REPORT 2025

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Parental leave is available to all employees regardless of gender;

however, in practice, more women than men take this leave.

Thetables below summarise parental leave take-up, as well

asreturn-to-work and 12-month retention outcomes following

parental leave.

Table 11: Parental leave take-up

2025 2024

Men 16 15

Women 179 241

Total 195 256

Table 12: Employee return and retention after parental leave

2025 2024

Men Women Total Men Women Total

Returned to work 8 174 182 20 187 207

Return-to-work

rate(%)

36 67 65 67 75 74

Retained after

12months

14 133 147 14 156 170

Retention rate (%) 70 71 71 93 91 91

We continue to look for opportunities, and in June 2023, a person

with a disability joined us as an intern and continues to work

successfully.

We are proud to have created an inclusive and friendly work

environment, which has also led to improved team productivity

and provided equal opportunities now and in the future.

In 2025, there were no registered cases of discrimination.

Freedom of association

The Group acknowledges the right of employees to join trade

unions, which protect and support their interests, and conducts

negotiations with three trade unions:

– Non-governmental organisation (NGO) ‘Local Labour Union

ofAviation Workers of Kazakhstan’

– ‘Local Air Astana Pilot Labour Union’

– ‘AVIATOR Pilot’ Labour Union of Air Astana JSC

We always aim to prevent labour disputes before they arise.

Ourinternal labour regulations outline the procedures for

employees to address grievances about working conditions,

makerecommendations or address other issues within the Group.

Direct supervisors, department heads and overseeing business

partners are involved in resolving problems.

Additionally, we engage internal mediators to facilitate the

resolution of employee problems. Trade unions exist to balance

the opinions of employee representatives and participate in

committees within the framework of labour legislation. We inform

every employee of their right to join a trade union at any time.

A collective three-year term agreement, covering 100% of

employees, was signed in 2023 between employee and employer

representatives and remained in effect in 2025. The Agreement on

the Conciliation Commission for the Resolution of Individual Labour

Disputes was also signed in 2023 and continues to govern the

resolution of individual labour disputes.

Competitive salaries and benefits

In accordance with our internal policies, employees who meet the

established eligibility criteria undergo an annual performance

appraisal. The outcomes of the appraisal serve as the basis for the

subsequent review of remuneration.

In 2025, more than 70% of employees were eligible to participate

in the performance appraisal process, of whom 60% were women

and 40% were men. Following the appraisal cycle, salary increases

were implemented in March 2025 for eligible employees.

Following the principles of responsible management, we closely

monitor the economic dynamics of the market and support the

welfare of our employees. To enhance competitiveness and

improve working conditions, in 2025, the Group undertook a

comprehensive review of remuneration and implemented salary

increases for the majority of employees.

In addition, Air Astana provides opportunities for career growth

within the Group. During 2025, more than 1,000 employees were

promoted to higher positions, of whom 87% were operational

personnel, with the remaining promotions granted to

administrative staff.

Air Astana’s IPO in February 2024 was a landmark event in

theCompany’s history, made possible by the commitment and

dedication of our employees. Their hard work and focus on high

standards played a significant role in the IPO’s success. As part of

the IPO launch, management developed an employee share option

plan for Air Astana. All employees became shareholders of the

Company in February 2025. This initiative, the first of its kind in

Kazakhstan, is a special gift on behalf of the first shareholders of

the Company, and reflects the efforts of the Company’s management

to enable employees to participate in the Company’s capital.

GRI 2-30 GRI 3-3; 401-2

SUSTAINABILITY CONTINUED

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Our benefits package is available to all employees, whether

permanent, temporary or part-time. However, some benefits are

only available after passing the probation period. Our employee

benefits package includes:

– Corporate pension plan

– Health and medical insurance

– Loss-of-licence insurance for pilots

– Peer support program for crew members

– Mental health support through the services of psychologists

– Special tariffs on flights with Group or partner airlines

– Shuttle bus for commuting to and from work

– Special tariffs for gym membership and in restaurants, bars and

hotels

– Support for various sporting activities (football and volleyball

teams, etc)

To promote employee well-being and engagement, FlyArystan

supported participation in four national marathon events across

Kazakhstan, encouraging an active lifestyle, teamwork and a

strong sense of community. The Company provided branded

sportswear for all participants and fully covered round-trip airfares

for employees travelling from other cities.

In line with national labour legislation, we pay compensation to

employees when they reach retirement age and their contract is

terminated, with the amount depending on the length of service:

– Two months’ salary for up to ten years’ uninterrupted service

– Three months’ salary for more than ten years’ uninterrupted

service

If an employee participates in the corporate pension plan and

reaches pension age in accordance with the labour legislation of

the Republic of Kazakhstan, they receive the full payment provided

under the terms of the plan upon dismissal at the age of 58 or

above. In 2025, the interest rate on deposits under the plan was

13.0% per annum; the annual effective interest rate (AER) was 14.0%.

People and culture

Employee engagement

Employee engagement contributes to our business development

by strengthening alignment with our values and goals.

We have measured employee engagement annually since

2016.The 2025 survey was the 13th and recorded the highest

engagement level since measurement began, reaching

4.2outof5. The engagement index shows that 60% of

employeesareengaged in their work and in the business.

We have achieved these positive outcomes through regular

communication with employees about the business, and by

creating platforms where they can ask the leadership team

questions and share suggestions for improving internal processes.

We also post updates on day-to-day activities on our mobile

applications and internal social platforms, enabling everyone to

stay connected even while in the air or on international routes.

Our line managers play a critical role in fostering an engaging

workenvironment and receive ongoing support from the Training

Academy. Through leadership development programmes, they

continue to strengthen their leadership competencies and their ability

to build a culture of trust and open dialogue within their teams.

Recognition culture

Air Astana continues to foster a culture of recognition and

appreciation through a range of long-standing initiatives.

Eachyear, we acknowledge outstanding performance through

ourannual employee HEART Awards programme, celebrating

achievements across different functions and levels.

Ongoing recognition is also supported through our KC Recognition

and KC Feedback platforms, enabling employees to share public

messages of appreciation and provide private feedback in a

transparent and developmental way.

SUSTAINABILITY CONTINUED

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In addition, the annual Breakfast with the Chief Executive Officer

ofthe Air Astana Group remains an important tradition, honouring

employees for their years of service and recognising long-term

contributions and loyalty.

Human rights

We promote and uphold human rights, including the eradication

ofslavery in all its forms. We truly believe that slavery, forced or

compulsory labour, and human trafficking, are serious violations

ofhuman rights that have no place in our operations. We operate

in aresponsible and ethical manner and ensure our business practices

do not contribute to any form of modern slavery. We have not

identified any instances of slavery, forced or compulsory labour

orhuman trafficking, in our operations. No child labour is used

atany of our operations.

We comply strictly with the requirements of labour legislation,

including timely notification to employees about upcoming

changesin working conditions, as well as the reasons necessitating

such changes. In the event of changes to working conditions,

therelevant additions and amendments are duly made to

employment and/or collective agreements in accordance with

established procedure.

Based on the results of the risk assessment, none of our activities or

that of our contractors fall within high-risk areas for the occurrence

of forced or compulsory labour. We conduct our operations exclusively

within the framework of formal employment relationships and

comply fully with labour law requirements. Prior to the conclusion

of civil law contracts, all contractors undergo a preliminary review

by the Compliance Department.

Talent management

Talent management is a strategic and systematic process of

identifying, attracting and planning for employees with high

potential and leadership aspirations. Developing and improving

their skills is a prerequisite for the Group’s sustainable development.

Our talent management programme is built around talent search

and selection, development and retention, people performance

management, succession planning, leadership development and

strengthening our culture and values.

KC Talents Programme: Developing future leaders

Since its launch in 2010, the KC Talents Programme has been one

of the key initiatives for identifying and developing future leaders

within the Group. Designed to identify and nurture high-potential

employees, the programme prepares participants for broader

leadership roles through mentorship, coaching and an extensive

leadership development programme.

The mid-term development programme is run by Air Astana

TrainingAcademy jointly with a leading business school,

DeMontfort University Kazakhstan. It includes leadership

development modules, covering topics such as Strategic Planning,

Marketing andCustomer Relationship Management, Financial

Intelligence and Fintech Innovations, Talent Management, IT,

andAIFundamentals and Managing Change, workshops,

masterclasses and mentorship withthe Group’s leaders, coaching,

practical assignments and business simulation.

Since 2010, up to 2025, 70% of the programme’s graduates have

beenpromoted within the Air Astana Group. In 2025, 12 employees

successfully enrolled in the programme and are currently participating

in a comprehensive leadership development programme.

Table 13: Labour practices

2025 2024 2023

Active workforce employed under

collectiveagreements (%) 100 100 100

Work stoppages 0 0 0

Days idle 0 0 0

SASB TR-AL-310a.1; TR-AL-310a.2

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62AIR ASTANA GROUP INTEGRATED REPORT 2025

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Training and development

People development – corporate training

During 2025, we focused on developing our management teams,

in particular as they move into supervisory or managerial roles.

Inlate summer 2025, to build on the new supervisory onboarding

orientation workshop for newly promoted supervisors, we launched

a newly designed follow-up programme to the successful

Leadership Essentials course, which has been running for several

years; 245 employees joined Leadership Essentials in 2025. Thenew

Managing People & Performance course consists of three key

modules, supported by inter-module webinars and online role-

specific learning programmes. The approach is designed to

equipnewly promoted leaders with continuous learning to build

foundational people management skills and practical strategies

toenable success in their new roles, help them navigate emerging

challenges and ensure team goals are aligned with organisational

objectives. A total of 86 participants are currently enrolled.

The Academy continued to run our popular skill-development

modules for employees at all levels. These were Conflict

Management, Stress Management, Peer Feedback and Building

High-Performing Teams: 180 employees attended. In addition,

fourgroups (45 participants) completed our Selection Skills training

to strengthen the capability of the recruitment team to assess

candidates more effectively and consistently, in line with

Company-wide standards and quality requirements. In 2025,

sevenTrain-the-Trainer (TTT) sessions were delivered, with a

totalof 76 trainers successfully certified.

To support new joiners to the Group, we ran our Orientation

Welcome Day on 42 occasions in 2025, covering 1,127 newcomers.

We also designed and launched the Welcome 2.0 programme for

employees who have been with the Group for six to nine months.

The programme includes a mandatory ‘Welcome 2.0’ webinar for

all new joiners within this tenure. The objective of Welcome 2.0

isto support employees beyond their initial onboarding and to

reinforce their engagement at a critical stage of adaptation.

Thesix-to-nine-month period is a key milestone in the employee

journey, when individuals have already gained practical experience

and adeeper understanding of our corporate culture and processes.

Welcome 2.0 provides a structured space for feedback, experience

sharing and inspiration, supporting employees in their continued

integration and development within the Group.

Finally, to improve language proficiency, we offered language

training in English (333 employees completed in 2025) and Kazakh

(38 employees completed in 2025).

In 2025, total training time amounted to 448,939 hours (2024:

330,124), of which 359,513 were delivered in person and 89,427

online. Of this total, 244,003 hours (54%) focused on initial training,

while the remaining 204,936 hours (46%) were dedicated to

recurrent, refresher, conversion/upgrade, continuation and

skill-enhancement programmes.

The average number of training hours per employee across the

Group increased to 62 hours (2024: 50 hours), primarily reflecting

workforce expansion and higher training intensity for operational

roles, particularly flight attendants and pilots.

We also significantly expanded our use of e-learning. Online

training hours almost tripled year-on-year, reflecting the increasing

integration of online learning into our overall training framework.

Administrative personnel continued to follow a blended learning

approach combining classroom-based and online training. See the

table below for the breakdown of average training hours per

employee by gender and employee category.

Table 14: Training hours breakdown

2025 2024

Per employee 62h 50h

Per female employee 56h

37h

Per male employee 71h

70h

Per employee from operational category 69h

58h

Per employee from administrative

category 19h

15h

As part of its approach to employee training and skills development,

the Company cooperates with De Montfort University (Kazakhstan),

Henley Business School (United Kingdom) and the International

Business Coaching University (Kazakhstan) to provide employees

with access to professional development and upskilling programmes.

We do not provide transition assistance programmes.

E-learning – corporate training

During the reporting year, we continued to develop our digital

learning solutions aimed at improving training efficiency and

accessibility. The primary focus was on strengthening the e-learning

ecosystem, enhancing the Learning Management System (LMS)

andthe Training Resources Management System (TRMS).

As part of digital initiatives, a self-enrolment training module

wasdeveloped and adapted for mobile use. In addition, certificate-

tracking and automated certificate-generation functionalities were

implemented, together with the automation of training reporting

within the TRMS. These improvements, alongside enhancements

to the LMS user interface, streamlined the administration of

training programmes, improved data transparency and supported

higher employee engagement in online learning.

As an enhancement of learner engagement and knowledge

retention, gamification elements were introduced to online training

courses. These included interactive scenarios, speech recognition,

quizzes and achievement-based mechanisms.

GRI 404-1; 404-2

SUSTAINABILITY CONTINUED

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By the year-end, employee engagement in online learning had

reached 92%, compared with 73% in 2024, demonstrating a

significant increase in participation and the effectiveness of digital

training formats. The LMS was actively used to deliver mandatory

training programmes covering Occupational Safety Culture,

Information Security, AI Awareness, and Aviation Security

Awareness, enabling centralised monitoring of course completion.

Online training formats reduced the need for in-person sessions,

business travel,and printed materials, contributing to lower

resource consumption. Overall, digital learning solutions have

proven to be an effective tool in supporting a culture of continuous

learning and consistent knowledge transfer across the organisation.

Operational training

Cabin and Ground Services safety training

In 2025, the Safety Training System demonstrated a high level of

maturity, resilience and regulatory compliance. Both Cabin Safety

Training and Ground Services Safety Training ensured uninterrupted

delivery of training programmes while successfully adapting to

organisational changes, peak operational demands and evolving

regulatory expectations.

A key achievement of the year was the successful completion of

all mandatory audits by both departments:

– IOSA Operational Audit – completed with zero findings and zero

recommendations

– National audit for renewal of the Aircraft Operator Certificate (AOC)

– National audit for renewal of the Approved Training Organisation

(ATO)

These results confirm robust training governance, effective

integration with the Safety Management System and strong

alignment with international and national standards.

During the reporting period, Cabin Safety Training delivered

37initial training courses and 209 recurrent training courses.

Thedepartment underwent a structural reorganisation aimed

atstrengthening operational oversight and enhancing training

effectiveness. In addition to theoretical and practical training, the

department assumed responsibility for cabin crew familiarisation

flights and in-flight checks, improving alignment between training

outcomes and real operational performance.

Staffing capacity was significantly reinforced through the

recruitment of 18 instructor-examiners. All candidates successfully

completed an intensive qualification process and are currently

undergoing approval by the aviation authority.

As part of the restructuring, a Training Quality and Standards

Department was established. Its responsibilities include the

development of training standards and programmes in line with

regulatory and international requirements, continuous monitoring

of training quality and implementation of improvement measures.

Oversight areas include cabin safety, CRM, first aid, aviation security,

dangerous goods, passenger handling, ramp handling and load

control.

Ground Services Safety Training delivered 44 initial and 174

recurrent training courses in 2025. The team demonstrated strong

flexibility and readiness to support seasonal traffic growth, holiday

peak periods, workforce onboarding and operational changes,

while maintaining full compliance with safety and regulatory

requirements.

Following organisational changes, instructional capacity was

preserved through the recruitment of qualified replacement

instructors and line instructors with solid operational backgrounds

in passenger services, load control and ramp operations. Training

programmes remained closely aligned with safety performance

data, incident reports and internal hazard identification processes,

ensuring that recurrent training continued to address actual

operational trends and risk areas.

The department also demonstrated sufficient stability and quality

to provide approved training to external organisations under the

ATO framework and in accordance with national regulatory

requirements. Through consistently high-quality delivery and strict

adherence to standards, Ground Services Safety Training has

established a strong reputation as a recognised centre of training

excellence among external clients and industry partners.

The 2025 results confirm the Safety Training System’s

effectiveness, readiness to manage operational complexity and

ability to sustain regulatory compliance under changing conditions.

Organisational development, enhanced quality governance and

strong operational integration provide a solid foundation for

continued improvement and safe operations in 2026 and beyond.

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Engineering and training standards

In 2025, Engineering & Maintenance continued to operate in a

highly regulated environment under key authority bodies, including

EASA Part-147/145, ICAO, and AAK, and remained subject to regular

audits in line with all operational departments. In addition to

routine regulatory oversight, internal compliance monitoring

activities continued under the Air Astana SC M&CA Audit Program.

For AAK ATC, five audits were scheduled, with four audits closed

and one audit in progress. For Part-147, six audits were performed/

scheduled, with five audits closed and one audit performed/

ongoing. Several audits were closed with zero findings, confirming

overall system stability and effective compliance control.

During the year, we delivered a broad programme of classroom-

based (instructor-led) training across multiple course categories,

coordinated by the Maintenance Training & Standards team,

including courses delivered by external training providers.

See the table below for a breakdown of instructor-led training

delivered by course category, including the number of courses,

training days and participants.

Table 15: Instructor-led training by course category

Course category

Number

ofcourses

delivered

Number of

training days Participants

Part-145 27 71 280

Part-147 12 122 171

ATC 85 131 890

External customer courses 27 150 279

Total 151 474 1,620

Part-145 training delivery focused on continuation training and

induction programmes for technical staff, including Safety

Management System training. Part-147 delivery included key A320

type training programmes such as A320 V2500 Type Training

(theory and practice), PW1100 (theory and practice), and A320

LEAP-1A difference training (theory and practice), ensuring

continued competence development and fleet readiness. ATC

training covered critical operational and regulatory topics, including

ETOPS, EWIS (Groups 1/2 and 4/5), FTS, Human Factors (Initial),

Module 10, and SAFA, supporting continued compliance and

operational safety performance.

In 2025, we continued the development of the Part-66 training

pathway by launching two new cadet groups in NQZ: Group Delta

(16 cadets) and Group Echo (11 cadets). This further strengthened

the internal pipeline for future EASA Part-66 B1.1/B2 licence

progression and supported long-term workforce sustainability.

In 2025, externally sourced training remained a key pillar of the

team’s training delivery strategy, ensuring timely competence

development and supporting operational readiness. During the

year, the team procured and coordinated 27 externally delivered

training courses totalling 150 training days, with 279 participants.

These were delivered by external supplier instructors, while Air

Astana’s Maintenance Training & Standards team ensured full

end-to-end organisation and governance, including supplier

coordination, agreement/contract preparation, scheduling and

complete logistics support (tickets, accommodation, local transport

and operational arrangements). The externally delivered training

portfolio covered a broad range of technical and regulatory

programmes, including Approved EASA Stores Inspector Training,

Borescope Inspection, A320 CFM56 Difference Training (theory

andpractice), A320 LEAP-1A Difference Training (practical), and

compliance-focused courses such as EASA Part-147 Regulatory

Training, Logistics and Stores Inspection Procedures – EASA

Intensive, and Part-145 Stores Tooling Control, Inspection Procedures

and Best Practice. Type training capability was further strengthened

through delivery of B747 Type Training (theory and practice) and

B767 Type Training (theory and practice). The portfolio also included

Train-the-Trainer continuation, supporting competence and

standardisation of instructor resources.

In addition, online LMS-based training continued to expand in 2025

and was used as a key standardisation and compliance tool across

Air Astana maintenance operations. A total of 156 online trainings

were managed via the LMS, covering Air Astana internal

documentation and procedure training, as well as mandatory

procedure familiarisation for engineering personnel working

underAir Astana/FlyArystan requirements.

The LMS supported two operational needs. Firstly, it ensured

consistent procedure compliance for Air Astana maintenance

personnel at the main maintenance stations in Almaty, Astana,

Atyrau and Aktau where the team provides maintenance support

to multiple customer operators, including Air Arabia, Airzeta,

AJetAirlines, Asiana Airlines, China Southern Airlines, DHL,

EgyptAir, FlyArystan, Flydubai, Galistair, Hong Kong Air Cargo,

IndiGo, Loong Air, Qatar Airways, SalamAir, Silk Way Airlines,

Tamga Jet, Turkish Airlines and VietJet. Secondly, it enabled

controlled online procedure training for engineers at Air Astana

and FlyArystan international outstations (destinations), including

India, Netherlands, Turkey, Bahrain, Thailand, China, Vietnam,

Qatar, United Arab Emirates, Saudi Arabia, Germany, Azerbaijan,

Greece, South Korea, Georgia, UK, Maldives and Egypt where

maintenance is performed by contracted local providers. In 2025,

this online procedure training was implemented across 33

international outstations, ensuring consistent compliance

withAirAstana/FlyArystan procedures.

The largest LMS enrolments were recorded for Air Astana Company

Procedure Training with 361 enrolled engineers, and FlyArystan

Company Procedure Training with 632 enrolled engineers,

confirming the effectiveness of LMS delivery in maintaining

consistent competence and procedural compliance across both

internal teams and outstation maintenance support.

SUSTAINABILITY CONTINUED

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Flight operations training

The Flight Operations Training Department continued to provide

training programmes in accordance with Kazakhstan regulatory

requirements and ICAO standards, as well as IATA requirements.

All650 current pilots completed their annual ground and simulator

training in accordance with the Operational Manual Part D (OM-D).

During 2025, we recruited and trained 110 new pilots, as well as

two new type rating examiners and six type rating instructors,

while nine line training instructors successfully completed

qualifying training courses. In addition, in 2025, 20 Ab-Initio cadets

graduated, 21 First Officers attended Command Upgrade Training

(promotion from First Officer to Captain) and 68 pilots completed

initial type rating courses on the A320 and B767. A total of 300

cadets have graduated since the start of the programme. In 2025,

23 new cadets joined the Ab-Initio programme with a planned

increase of 40 more cadets in 2026.

Since we launched the L3Harris A320 Full Flight Simulator training

at the Flight Training Centre in Astana in summer 2023, all pilots

have attended training and checking, completing 7,242 simulator

hours during 1,979 simulator sessions. Additionally, a second

L3Harris A320 Full Flight Simulator was installed at the Astana

basein autumn and became fully operational at the beginning

ofApril 2026.

Customer Service Training

Our long-standing focus on safety is complemented by an equally

strong commitment to service. Alongside operational excellence,

customer service remains one of our strategic priorities and key

competitive advantages. In 2025, Customer Service Training played

a central role in ensuring workforce readiness and consistent

service delivery across both Air Astana and FlyArystan.

Service training was treated as an integrated mechanism

supporting frontline capability and leadership development.

Fromthe customer’s perspective, Air Astana represents one brand,

and training initiatives were designed to ensure consistent service

behaviours across all customer-facing functions and across both

ofthe Group’s airlines.

Learning approaches

Customer Service Training continued to leverage a blended learning

approach, combining classroom-based training and digital learning

solutions, to support a diverse and geographically distributed

workforce and ensure consistent delivery of service standards.

Webinars were used to provide broad and timely coverage of

service standards, grooming requirements, communication skills

and customer interaction scenarios, with a particular focus on

supporting outstations and maintaining alignment with brand

expectations.

As part of our ‘Going Global’ strategy, training initiatives

emphasised cultural awareness and understanding customer

expectations across international markets. The Kazakh Hospitality

for Korean Customers CBT programme focused on cultural nuances,

service preferences and communication styles relevant to Korean

passengers, enabling frontline employees to apply cultural

sensitivity in daily operations.

SUSTAINABILITY CONTINUED

Ticketing and Reservations training

Nomad Club training: Awaken the Spirit of Nomad Club

In 2025, the Nomad Club training programme, ‘Awaken the Spirit

ofNomad Club’, was one of the key focus areas for the Ticketing &

Reservation Training team. This need was identified through quality

statistics, which showed that Nomad-related cases were among

the most frequent error topics within Ticketing & Reservations.

While these errors did not result in financial losses, their volume

highlighted the need for structured and consistent training.

This was further reinforced by the significant transformation

oftheNomad Club programme in May 2024, which included

changes to the platform, programme structure and the principles

of points accrual. These updates required agents to develop a

deeper and more accurate understanding of the revised rules

and processes.

The training was developed by the Ticketing & Reservation

Training team in close collaboration with Nomad Club, Finance

and Quality Ticketing & Reservation, ensuring a comprehensive

and practical approach to the content.

During 2025, a total of three training sessions were delivered,

covering approximately 11.3% of the Ticketing & Reservations

workforce. Based on post-training survey results, the programme

received an average CSAT score of 4.95 out of 5, reflecting strong

engagement and high participant satisfaction.

Looking ahead to 2026, 14 training sessions are scheduled

inAlmaty and Astana, with the objective of covering the

remaining Ticketing & Reservations workforce and ensuring

aconsistent levelof knowledge across all agents regarding

theNomad Club programme.

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Training statistics

In 2025, Customer Service Training covered 1,594 employees across

the Air Astana Group. Training participation percentages reflect the

share of employees trained across different training categories.

Initial training accounted for 64.4% of all training participation in

2025, based on the number of employees trained, covering 1,026

employees. These programmes were delivered for newly hired

frontline employees, including cabin crew, ground services agents,

cadets, ticketing and reservations, and contact centre staff. Initial

training covered 802 employees for Air Astana and 224 employees

for FlyArystan, supporting consistent service readiness from the

start of operational activity.

In 2025, Air Astana also marked the graduation of the 300th

cabincrew training group, reflecting the scale and continuity of the

Company’s training operations and its long-term commitment to

frontline readiness.

Promotion training accounted for 21.8% of all training participation,

based on the number of employees trained, covering 348

employees and focusing on the upskilling of staff progressing into

supervisory and senior operational roles.

Training for specialised roles accounted for the remaining 13.8% of

training participation, based on the number of employees trained,

covering 220 employees in supporting and operational functions.

This included Customer Service training for I’m unable to find

reference to this on the website, but I believe this is intended

tobesentence case. Please confirm and the Summer Task Force

Volunteers Programme, involving non-operational employees

supporting frontline teams during peak operational periods.

Overall, the 2025 Customer Service Training programme reinforced

service excellence through behaviour, leadership and modern

learning practices. By focusing on frontline readiness, leadership

continuity and specialised operational support, Customer Service

Training contributed to a consistent, reliable and customer-focused

service culture across the Air Astana Group.

SUSTAINABILITY CONTINUED

Training Academy – in summary

The Academy continues to focus on aligning customer

experience and training with our core business objectives of

efficiency, excellence and growth. Our blended training approach

continues to promote efficiency and productivity through the

growth of self-paced learning. In addition, our continued focus

on benchmarking our training in technical skills, operational

safety and customer service, as well as our leadership

development, improves excellence and supports growth.

Our brand is further enhanced by our training for external clients,

including, but not limited, to Prime Aviation, Comlux, Lufthansa,

Kazaviaspas, Global Express Limited, JSC Almaty International

Airport and MED Invest Group. Our E&M, Operational and

Customer Service teams were involved in delivering programmes,

both to airline and non-airline clients. The ability to train external

clients inboth commercial and other sectors demonstrates our

credibility as a training leader beyond aviation and makes the

unit a fully-fledged revenue-generating department.

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SUSTAINABILITY CONTINUED

Our commitment to local communities

We believe that strong and lasting relationships with local

communities are essential to our operations. Our initiatives

aredesigned to create meaningful and sustainable community

impact, with a focus on inclusivity and long-term positive

outcomes.

Our approach and methodology have remained consistent since

the establishment of a formal social projects framework in 2022

and are based on the following principles:

– Sustainable corporate social and environmental initiatives

– Partnerships with local and national non-profit, charitable,

cultural and educational organisations

– Targeted support for vulnerable groups of community, including

children with serious illnesses, persons with disabilities and

veterans of the Great Patriotic War

– Employee engagement through fundraising and volunteering

opportunities

Communities

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SUSTAINABILITY CONTINUED

Community projects

Our criteria for selecting charitable and

funding projects focus on the value they create

for communities, as well as their alignment

with our ESG priorities and corporate values.

Zhas Kyran Programme

In 2025, the Zhas Kyran Programme continued supporting young

talent by expanding access to international educational, sporting

and creative opportunities. Out of 141 applications, 46 gifted

children from across Kazakhstan were selected through a

competitive, transparent process. The programme provided

complimentary air travel for children and their guardians,

enabling them to represent Kazakhstan at competitions and

Olympiads in Europe, the US, the UAE, Thailand, China and

beyond. By removing logistical and financial barriers, it promotes

human capital development and showcases Kazakhstan’s young

talent globally.

World Knowledge Day –

promotingchildren’sreading

As part of its ongoing support for education and youth

development, Air Astana donated 1,000 children’s books in

Kazakh to the Almaty Centralised Library System for World

Knowledge Day and the International Day of Charity. The first

setwas presented during a meeting with young readers at a

district library named after I. Krylov, with remaining collections

distributed across city children’s libraries, fostering reading

andsupporting children’s development.

Technovation Girls

Air Astana further demonstrated its commitment to STEM

education and gender equality by supporting the Technovation

Girls programme. Employees served as experts and jury

members, providing guidance to girls aged 8–18 developing

technology-based solutions to social challenges. The Company

also awarded air tickets to recognise the programme’s mentors.

International Children’s Day

Ahead of International Children’s Day, Air Astana organised a

special event for young patients at the Aksai Children’s Hospital

in Almaty, offering emotional support and care. The initiative

included an off-site theatrical performance based on a classic

children’s story, creating a positive environment for children

undergoing medical treatment. Employees participated in the

celebration, presenting gifts to each child, with special attention

given to bedridden patients, who received gifts in their

hospitalrooms.

Autism Awareness Month initiative

In April 2025, in partnership with the Bulat Utemuratov

Foundation, Air Astana marked Autism Awareness Month with

initiatives to promote social inclusion, accessibility and equal

passenger experience. Passengers received special edition

colouring books featuring artwork by children from Asyl Miras

autism centres, raising awareness and fostering inclusion. The

Company also delivered ‘Autism Friendly’ training to employees,

equipping them with practical communication skills to support

passengers with Autism Spectrum Disorder and create a more

inclusive travel environment.

Medical transport for critically ill children

Providing air transport for critically ill patients remains a key

priority for the Company. In 2025, Air Astana provided ten

complimentary tickets to support critically ill children requiring

medical treatment and arranged an upgrade to Business Class

for a severely ill passenger who was unable to travel under

standard conditions.

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SUSTAINABILITY CONTINUED

Supporting healthcare innovation

atExpo2025

In 2025, Air Astana provided complimentary air travel to a team

of cardiac surgeons from the UMC Heart Center to support their

participation in Expo 2025 in Osaka, Japan. At the international

exhibition, Kazakhstan presented ALEM, an innovative medical

technology for donor organ preservation, developed with the

support of the Heart Centrer Foundation and showcased in the

Connecting Lives thematic zone, allowing AirAstana to

contribute to the advancement of healthcare, science and global

knowledge exchange as part of its ESG and social responsibility

commitments.

Support to the public association ‘Territory

of Success’ for the implementation of the

social project ‘Umit’

FlyArystan provided financial support to the public association

‘Territory of Success’ for the implementation of the social project

‘Umit’. The project focuses on the comprehensive rehabilitation

of children with cerebral palsy. As part of the initiative, ten

children with cerebral palsy who have been left without parental

care received comprehensive rehabilitation. This initiative also

offers children access to rehabilitative treatment, along with

opportunities for social adaptation, basic education and

integration into society.

New Year charity event: support for

childrenwith special educational needs

Since 2021, Air Astana has provided ongoing support to children

with special educational needs in the Turksib district of Almaty

through long-term co-operation with psychological, medical and

pedagogical consultation, and psychology-pedagogical correction

rooms. In December 2025, the Company supported a carefully

designed New Year event and provided developmental gifts,

ensuring a calm and inclusive environment tailored to children’s

individual needs, reflecting Air Astana’s sustained, needs-based

approach to social responsibility focused on inclusion and

support for vulnerable groups.

Project Komek

FlyArystan’s corporate social responsibility project Komek

officially launched on 1 February 2024. The project’s main goal

isto support vulnerable segments of the population by providing

discounts on commercial flights. In 2025, a total of 825

passengers benefited from the project.

Support for the organisation of training

sessions in Aktau and Almaty with the

UMC Heart Center Foundation

In 2025, FlyArystan supported the organisation of educational

cardiothoracic surgery events in Aktau and Almaty as part of

itspartnership with the Heart Center Foundation. FlyArystan

provided air transportation forpaediatric cardiologists and

cardiac surgeons from Astana to conduct off-site training

sessions under the ‘Patient School’ project, involving specialists

from the UMC Heart Center (University Medical Center) for

doctors and parents of children with congenital heart defects.

Organisation of a hangar tour at Astana

Airportfor children with disabilities

FlyArystan, together with Nursultan Nazarbayev International

Airport, organised a tour of the technical hangar in Astana for

children with disabilities who are beneficiaries of the ‘Special

Holidays’ Public Foundation. The event, held in celebration of

Capital City Day, took place in the technical hangar. A total of

15children and their parents took part in the tour.

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FINANCIAL REVIEW

Strong revenue

growth despite

operational and

external challenges

The Group delivered a resilient financial performance in 2025,

which was particularly gratifying given the significant operational

and external challenges experienced throughout the year. Revenue

growth remained strong, but margin performance was hampered

by engine-related constraints, foreign exchange movements and

cost pressures, mostly during the second half of the year.

Revenue

The Group continued to deliver strong growth in 2025, with total

revenue and other income up 11.4% to USD 1,453.9 million (2024:

USD 1,304.9 million).

This was achieved through disciplined capacity

and revenue management in an environment of resilient demand.

EBITDAR

increased 0.8% to USD 321.2 million (2024: USD 318.7 million),

reflecting robust top-line performance offset by operational and

cost pressures during the year. EBITDAR margin was 2.3 pp lower

at 22.1% (2024: 24.4%).

Profit after tax decreased USD 35.9 million

to USD 13.6 million (FY 2024: USD 49.4 million),

reflecting margin

pressure in the second half of 2025.

During 2025, the Group had 22 Unplanned Engine Removals (UERs)

due to Pratt & Whitney engine design defects in addition to the

powdered metal issue, which is reported in detail on page 24

ofthis report. The nature of these UERs required engines to be

removed earlier than under the scheduled removal plan, grounding

up to 13 aircraft in the peak season and reducing the capacity that

had been preserved for deployment during that time.

The Group estimates that cumulative lost production from UERs

had a negative effect on EBITDAR of USD 42.3 million in 2025.

While the Group agreed – and continues to receive – compensation

and support arrangements with Pratt & Whitney at an early stage,

discussions are still ongoing to establish appropriate mitigation for

this additional operational and financial impact.

During the year, the depreciation of the Kazakh Tenge against

theUS Dollar had a disproportionate impact on FlyArystan due to

its higher exposure to the domestic market, partially offset by a

smaller positive impact on Air Astana with an estimated negative

effect on Group EBITDAR of USD 18.4 million. While FlyArystan

implemented fare adjustments to mitigate the currency impact,

these took effect after the peak season, whereas Air Astana had

already mitigated part of the impact through earlier pricing actions

with the full effect reflected in Q4 performance.

In addition, temporary airport closures, including Astana

International, in Q3 2025 had a negative effect on EBITDAR; all

major airports, bar one regional exception, have since resumed

normal operations.

These factors primarily affected performance during the peak

operating period and contributed to cost and margin pressure

inthe second half of the year, although the impact was partially

mitigated by revenue growth, fare adjustments and continued

expansion of international operations, supporting overall financial

performance for the full year.

The Group delivered a resilient financial

performance in 2025, which was particularly

gratifying given the significant operational

andexternal challenges experienced

throughoutthe year.”

Ibrahim Canliel

CHIEF FINANCIAL OFFICER

1 Excluding non-recurring revenue items (USD 4.2 million).

2 Operating profit + Depreciation + Aircraft leases + Property lease

ofUSD1.1million.

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FINANCIAL REVIEW CONTINUED

Notwithstanding the above, customer demand once again boosted

the number of passengers carried by the Group, increasing by 7.9%

to 9.7 million (2024: 9.0 million) with a stable average load factor

of82.7% (2024: 83.5%) and largely reflecting continued expansion

ofthe Group’s international network. Through our continued

commitment to dynamically managing capacity allocation,

ASKsareup 14.0% to 22.0 billion (2024: 19.3 billion), driven by

a19.8%increase in international ASKs, compared with 6.9%

growthondomestic routes.

Unit revenue, costs and margins

CASK increased 1.6% to 6.20 US cents (2024: 6.10 US cents),

reflecting a challenging operating environment. While RASK

decreased 2.3% to 6.60 US cents (2024: 6.75 US cents), the

resulting narrowing of the RASK–CASK differential was partially

mitigated by dynamic capacity management, fare adjustments

andoperational efficiency measures.

RASK growth had been negative in earlier quarters of 2025, but

increased 9.8% to 7.18 US cents in Q4 (Q4 2024: USD 6.54 US cents)

as a result ofdomestic fare adjustments and reflecting focus

onhigh margin international destinations. International capacity

grew 11.2% while domestic capacity decreased 1.4% in Q4.

Theturnaround in RASK provides confidence that we will see

margin improvement driven by production increases going

forward, especially during the summer peak.

Continued challenges in relation to Pratt & Whitney engine issues

remain a significant factor affecting the Group’s results. This was

still evident in Q4 when CASK increased 17.3% to 7.23 US cents

(Q42024: 6.16 US cents), primarily due to underutilisation of

planned operational staff during the peak season as a result

ofUER-related aircraft groundings and fixed maintenance costs

being spread over a lower than expected ASK production base.

Fuel hedging and currency

In common with rest of the global airline industry, fuel is our

biggest single cost, accounting for around 24% of total operating

expenditure. Approximately 70% of the Group’s fuel uplift is from

Kazakhstan where it sources primarily direct from the refineries.

Here, we differentiate ourselves from our competitors by managing

the logistics ourselves, including transportation, enabling us to

achieve a generally lower price point than that paid at our

international stations.

In line with the Group’s policy to hedge fuel price risk, it hedged

allvolumes in 2025 using call options enabling the Group to hedge

the upside risk without an associated downside risk. For the

remaining 30% of international uplift, the Group is hedged at

100%of international uplift for the first quarter of 2026 and 25%

for the secondquarter of 2026 with caps of USD 70 and USD 65

perbarrel, with no downside risk.

Balance sheet and leverage ratio

Our strong balance sheet enables us to have a flexible approach to

capital allocation. Significantly, our capital expenditure investments

not only provide operational efficiency but also have the potential

of becoming future profit centres.

As at 31 December 2025, the Group maintained a strong liquidity

position with cash and cash equivalents of USD 472.9 million

(2024:USD 488.7 million) with a cash-to-sales ratio of 32.5%

(2024:37.3%) before available facilities. The leverage ratio stood

at1.80x Group Net Debt/EBITDAR compared with 1.24x in 2024,

remaining comfortably within medium-term guidance.

Dividends

The Board of Directors approved a new Enhanced Dividend Policy

in March 2025. This increased the dividend payment from up to

20% annual consolidated net income to a new base of 30% to 50%

of the same.

For the financial year ended 31 December 2025, the Board is

recommending a dividend of KZT 9.92 per one common share

(KZT39.68 per GDR – equivalent to four shares), a total dividend

ofKZT 3.5 billion.

This is subject to approval at the Annual General Meeting of

Shareholders, which will take place no later than 31 May 2026

andwill then be payable in mid-2026.

Buyback programme

On 30 April 2024, the Company commenced a buyback programme

to purchase ordinary shares and global depositary receipts in order

to satisfy the Company’s obligations arising from its employee

incentive programmes whilse not diluting shareholders. The first

phase of the programme concluded on 31 December 2024,

amounting to a total consideration of USD 8.2 million, and

firstvesting of shares and GDRs to employees took place

on17February 2025.

The Employee Share Ownership Plan (ESOP) was granted to

eligible employees who had worked for the company for at least

one year prior to the IPO. The ESOP would vest one year after the

IPO with no further performance conditions except for continuous

service. The programme was completed during the first quarter

of2025, and the value of distributed ordinary shares was

USD5.3million.

In March 2025, the next phase of the programme was approved

with a total consideration of up to USD 5.0 million.

As at 31 December 2025, the Company had purchased a total

of2,578,062 shares for a total consideration of USD 2.6 million.

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FINANCIAL REVIEW CONTINUED

In March 2026, the Company’s Board of Directors approved a

further phase of the programme, which commenced on 16 March

2026. Under this phase, the Company intends to purchase up to

1,506,583 shares (in the form of shares and/or GDRs) for a

maximum consideration of up to USD 4.0 million to satisfy its

obligations under its long-term employee incentive programmes.

Maintaining medium-term guidance

The Group remains on course to deliver growth in 2026, in line

with its medium-term guidance:

– Dynamically re-allocate capacity to ensure highest margin

delivery and mitigate inflationary cost pressures, while retaining

a load factor in the low-to-mid 80s

– Total fleet to expand to 86 aircraft by the end of 2030

– Medium-term expectation of an EBITDAR margin in the

mid-to-high 20s with liquidity ratio above 25% and leverage

below 3.0x Net Debt/EBITDAR

Economic performance

The Group serves as a vital catalyst for economic development

atthe regional, local and national levels, leveraging its core

operations and strategic socio-economic initiatives to drive

sustainable growth. Guided by the principles of responsible

corporate citizenship, we ensure our business model is not

onlyprofitable and efficient but also deeply integrated with

thelong-term prosperity of the regions in which we operate.

Thiscommitment to shared value creation is realised through

thecontinuous enhancement of operational productivity and

asteadfast adherence to fiscal responsibility through the payment

oftaxes. We also generate significant economic multipliers by

providing both directand indirect employment opportunities

andfostering regional resilience through the prioritisation of

localprocurement and the robustdevelopment ofdomestic

supplychains.

Comprehensive details regarding the economic performance of Air Astana

Group are available in the audited financial statements of this Integrated

Report, on pages 111 to 120.

The direct economic value generated and distributed table

hasbeen prepared based on the Group’s consolidated financial

statements. The calculation is performed on an accrual basis

andincludes operating cash costs, employee wages and benefits,

payments to providers of capital, taxes paid, and community

investments in line with GRI 201-1 requirements. Community

investments are not directly reflected in the financial statements

and are disclosed based on internal management data.

Direct economic value generated and distributed data is reported

only for Kazakhstan, as it represents our significant market based on

operational scale and impact; no other country, region, or market

meets the criteria for separate reporting.

Table 16: Direct economic value generated and distributed

USD ’000 2025 2024 2023

Direct economic

valuegenerated 1,476,197 1,331,227 1,189,320

Economic value

distributed

Operating cash costs 869,256 756,600 679,396

Employee wages

andbenefits 260,896 226,659 193,067

Payments to providers

ofcapital 106,677 54,619 62,769

Taxes paid 45,785 33,990 43,137

Community investments

255 2,277 15

Total of economic

valuedistributed 1,282,869 1,074,145 978,384

Economic value retained

193,328 257,082 210,936

1 These line items are not directly presented in the audited financial

statements.

GRI 3-3; 201-1

As I move over to take up my new role as Chief

Executive Officer, I am delighted to welcome Gonçalo

Pires asthe Chief Financial Officer for the Group.

Hejoins us from the Portuguese flagcarrier,

TAPAirPortugal, where he has been the CFO

since2021. Withover two decades in the finance

andinvestment sector, his recent experience in

implementing restructuring and digitalisation

initiatives will be crucial to the future direction of

the business. I have very much enjoyed my working

relationship with our retiring CEO, PeterFoster, and

look forward to building on his legacy as the Group

continues on its growth strategy.”

Ibrahim Canliel

CHIEF FINANCIAL OFFICER,

CHIEF EXECUTIVE OFFICER

(from 1 April 2026)

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73AIR ASTANA GROUP INTEGRATED REPORT 2025

Strategic report

RISK MANAGEMENT

Integral to

business resilience

and sustainability

Our risk management processes help to

promote a corporate culture that is

underpinned by risk-averse behaviours.

As well as providing a platform that enables us to respond agilely

to changing circumstances, our Corporate Risk Management

System (CRMS) is key to safeguarding the long-term resilience

andsustainability of our business. Our daily operational activities

– encompassing governance, performance management and

internal control practices – all fall within the scope of our CRMS.

Forthe Board of Directors and Management, it is a valuable tool

for evaluating the options available for creating, enhancing and

realising value for our shareholders.

We developed the CRMS to reflect and incorporate international

best practice in risk management. This is further consolidated

through our adoption of the ‘COSO Enterprise Risk Management

Framework – Integrating with Strategy and Performance’, which

isthe basis of our Risk Management Policy. In line with this policy,

risk management is integrated across all our internal processes

and functions, and we take risk into account whether driving

current performance or making decisions.

Risk management framework

The CRMS defines clear roles and responsibilities for the Board of Directors, Audit Committee, Risk Committee, Management and each

employee, which in turn drives the development and implementation of efficient risk management practices and procedures. In addition,

this helps to reinforce a culture that is underpinned by risk-averse behaviours.

BOARD OF DIRECTORS

Primary responsibility for risk oversight

in our operational and risk management

functions.

– Sets short- and long-term goals/objectives

– Approves the Risk Management Policy

– Approves other policies for managing specific risks

– Analyses the external auditor’s reports for improving internal control and risk management

– Reviews and approves the quarterly Risk Register and Risk Map

– Approves the Group’s risk appetite and tolerance to risk

– Reviews reports from the head of the structural unit responsible for risk management

withdescription and analysis of the Group’s risks

– Reviews reports on the efficiency of the CRMS

AUDIT COMMITTEE

Acts in the interests of shareholders

andprovides oversight support to the

Board on the reliability and efficiency

ofthe CRMS.

– Reviews quarterly reports on changes to the Risk Map

– Reviews changes to the Risk Register

– Reviews reports on risks

– Reviews risk appetite annually

– Reviews quarterly reports on realised risks

– Reviews reports on any significant deviations from standard risk management processes

– Reviews reports on non-compliance with regulatory risk management requirements

asnecessary

RISK COMMITTEE

An advisory-consultative body to

theChief Executive Officer, the Risk

Committee provides preliminary

reviewsand makes recommendations

fordecision-making on risk

managementissues.

It is responsible for the integrity and

efficient functioning of the CRMS and the

development of a risk control structure

that ensures the performance of and

compliance with the Group’s policies.

– Approves the annual strategic plan for the CRMS

– Organises an efficient CRMS to enable the identification and assessment of potential risks

– Reviews and approves the quarterly Risk Register and Risk Map

– Reviews and provides preliminary approval of the annual risk appetite

– Reviews quarterly reports on realised risks

– Reviews and approves the Key Risk Indicator (KRI) panel annually and considers the status

ofKRIs

– Reviews and approves risk management action plans on the effectiveness levels of certain

risks annually

– Reviews risk management reports and whether adequate measures have been adopted

– Improves internal risk management procedures

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RISK MANAGEMENT CONTINUED

Risk responsibilities

In order to provide a balanced approach to managing risk, the Company has adopted the Three Lines of Accountability model within its operating structure.

The Three Lines collaborate and communicate regularly to ensure a comprehensive understanding of risks and controls.

First Line

Air Astana Group structural

unitsand all employees

Structural units and each employee participates in

riskidentification and management within their areas

ofresponsibility.

– Risk identification – Identifying and assessing risks

within their area of responsibility

– Control implementation – Designing, implementing and

maintaining day-to-day internal controls to manage risks

within the scope of supervised/performed operations

– Monitoring and reporting – Continuously monitoring

operational performance and reporting risk-related

issuesand control failures to the Risk Management unit

– Issue resolution – Taking corrective action to address

controldeficiencies and mitigate risk

Second Line

Risk management, internal

control and compliance functions,

including corporate safety

compliance and aviation security

The Second Line provides oversight and support to

theFirst Line. It includes specialised risk management

and compliance functions that oversee and facilitate

effective risk management practices.

The main functions of the Risk Management Unit include,

butare not limited to:

– Policy development – Establishing risk management

policies, regulations, manuals and procedures

– Guidance and training – Providing guidance and training

tothe First Line on risk management and compliance

requirements. Developing risk culture within the Group

– Risk oversight – Coordinating corporate risk management

activities and ensuring First Line adherence to policies

andprocedures

– Compliance and effectiveness monitoring – Assessing

compliance with regulatory requirements and internal

policies and the effectiveness of risk management actions

– Reporting – Providing independent risk management

andcompliance reporting to the Risk Committee,

AuditCommittee and Board of Directors

Third Line

Internal Audit Department

Internal audit assesses the adequacy and effectiveness

of the Group’s risk management system and develops

recommendations (including involvement of external

independent consultant).

– Risk-based audits – Conducting independent

assessments ofrisk management, control processes

andgovernance practices

– Evaluation of controls – Reviewing the adequacy

andeffectiveness of the CRMS implemented by the

FirstandSecond Lines.

– Reporting and recommendations – Providing findings,

insights and recommendations to improve the control

environment and risk management practices.

– Follow-up – Monitoring the implementation of

auditrecommendations and corrective actions.

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PRINCIPAL RISKS AND UNCERTAINTIES

Effective risk

management

We categorise risks depending on their possible level of impact

onour ability to successfully meet our strategic objectives.

Theseare classified from ‘low’ to ‘very high’ risk; certain risks,

ifrealised, could have severe consequences for the business.

The table below outlines the potential risks facing the

Groupalongwith any mitigating actions. It also highlights the

assessment of and any changes in risk exposure during 2025.

We are really pleased to have delivered on the

promises we made at the end of 2023. By responding

to industry challenges with agility and resilience,

we have fulfilled every commitment we set out.”

Ibrahim Canliel

CHIEF FINANCIAL OFFICER,

CHIEF EXECUTIVE OFFICER

(from 1 April 2026)

Risk name and description Mitigation Impact

SAFETY RISK

Effective safety management is critical to minimise

the potential for incidents or accidents. The

resulting effects of such events could have a

significant adverse impact on the Group.

For the purpose of mitigating risks related to flight safety, we have established a safety management and compliance monitoring

system, through which we conduct compliance and performance-monitoring audits, and set and monitor safety performance

indicators. We have an employee training programme in place with an emphasis on procedural compliance. Specifically in the

areaof flight operations training, the Group has made a significant investment in training its own instructors to ensure consistently

high standards.

There are regular independent assessments by regulatory authorities, EASA and CAC Kazakhstan as well as industry

assessments (IOSA).

Risk level:

Risk exposure trend:

Link to strategy:

AVIATION SECURITY RISK

Consequences of aviation security risk could

adversely affect any airline’s performance and

reputation. Effective aviation security risk

management is, therefore, essential to the Group.

Air Astana Group has all required aviation security management policies and procedures in place. The Aviation Security Division

reviews these policies regularly. We provide training on aviation security to all required employees and for those whose duties

require access to airport restricted areas. Airport audits are performed on a regular basis for compliance ensuring aviation security.

However, the Group is committed to ensuring resilience on all operational fronts with safety and security being the top priority at

all times.

Risk level:

Risk exposure trend:

Link to strategy:

Link to strategy

Growth Efficiency Excellence

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

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PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Risk name and description Mitigation Impact

COMMERCIAL RISK

The factors such as intensive market competition,

government intervention, operational limitation,

geopolitical tensions, and rising costs can create

challenges for the Group.

In 2025, the Air Astana Group operated amid continued pressure within the global aviation industry, including engine availability

constraints, supply chain disruptions, cost inflation, geopolitical uncertainty and the depreciation of the Kazakhstani Tenge.

The Group focused on flexibility and financial discipline, dynamically adjusting network capacity and fleet deployment to match

demand and operational realities, while prioritising reliability and resilience. Continuous monitoring of market developments

supported timely decisions, helping mitigate aircraft on ground (AOG) and currency risks and sustain stable operations in a challenging

year. A commercial focus on achieving a high load factor, dynamic sales actions and the right resource allocation also helped

maintain stability. One of the tools that helped diversify revenue sources was stimulation of inbound and transit passenger traffic.

Risk level:

Risk exposure trend:

Link to strategy:

HUMAN RESOURCES RISK part of ESG risks

The Group’s Human Resources Policy is designed to

ensure the retaining and recruiting of qualified

personnel who are capable of performing their

duties effectively and productively in line with its

strategic goals and values and in compliance with

professional and ethical regulations. TheGroup

considers its employees to be one ofits main

assets.

The Group fosters equality in the workplace, ensuring a discrimination-free environment for people to thrive regardless of gender,

age, ethnicity, religion or cultural background. Human resources risk management covers key areas, including recruitment,

retention of key personnel, elevation of employee experience, provision of seamless access to resources and facilitation of talent

development. We provide training and self-development to ensure employee satisfaction. Air Astana’s HEART and FlyArystan’s

CHARM values remain a priority as vectors of the working environment.

Risk level:

Risk exposure trend:

Link to strategy:

HEALTH, SAFETY AND ENVIRONMENT (HSE) RISK part of ESG risks

The Group understands its moral and ethical

responsibility to ensure the health and safety of

employees and thus consistently makes an effort

to protect their physical and mental well-being. In

the area of occupational health and safety, we act

in compliance with national, legal and other

regulatory requirements and international rules of

the aviation industry.

We have all the procedures in place to provide a high level of occupational safety. Employees are aware of all the procedures

andare kept informed of any changes in instructions, which are regularly updated in line with government guidelines.

For reducing and recycling waste, we conduct educational work with employees via developing instructions, posters and

environmental protection-oriented events. In line with the Ecological Code of the Republic of Kazakhstan, the Group issues

anenvironmental impact declaration for quantity of solid, hazardous and non-hazardous waste. We collect and sort waste

fortransferfor:

– third-party disposal by specialised companies (hazardous – waste oil, used filters, rechargeable batteries, worn tyres,

scrapmetal, residues of solvents, paintwork materials, aggressive liquids, used mercury-containing lamps etc.)

– waste dumping (solid waste)

– scrap metal, paper waste and PET recycling

Risk level:

Risk exposure trend:

Link to strategy:

Link to strategy

Growth Efficiency Excellence

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

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Risk name and description Mitigation Impact

SERVICE QUALITY RISK

A high level of service standards is at the core of

our activities. Failure to provide high-quality

services could lead to damage to our business

reputation along with the loss of customers and a

reduction in the Air Astana and FlyArystan Skytrax

ratings.

We are committed to delivering an exceptional customer experience across the end-to-end travel journey. The Group offers

extensive training programmes to ensure that all employees who communicate and interact with clients are fully trained and

maintain their skills at a high level and in line with our standards. Through data analysis, the Group is able to efficiently analyse

customer feedback and determine how customer satisfaction scores are impacted by product and service changes across different

stages of travel.

Risk level:

Risk exposure trend:

Link to strategy:

CLIMATE-RELATED RISKS

The aviation industry faces a complex array

ofclimate-related risks that require proactive

management as part of its ESG strategy.

Addressing both chronic and acute risks will

require significant investment in infrastructure,

technology, and operational changes, as well

asincreased transparency and stakeholder

engagement. Together with the transition

toalow-carbon economy.

The Group promotes sustainable and resilient growth through committed sustainability stewardship and adherence to evolving

environmental regulatory requirements.

Operational procedures and сommercial and crew planning are adjusted to account for high-temperature conditions, including

enhanced take-off and landing performance calculations, weight management measures and schedule optimisation, in order

tominimise weather-related disruptions and associated costs.

Risk level:

Risk exposure trend:

Link to strategy:

EXTERNAL COMMUNICATION RISK

A positive reputation and the brand loyalty it

generates can serve as a major advantage. The

roles of brand image, price, service quality, brand

preference and brand loyalty reflect differentiated

competitiveness and are intangible assets.

Maintaining a positive and consistent corporate persona with customers, suppliers, business partners, employees and the broader

community. Reputation issues with media/press and regulators. Managing reputation and credibility – improving investor sentiment

and reputation with other stakeholders (e.g. improved corporate image and reputation).

Risk level:

Risk exposure trend:

Link to strategy:

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Link to strategy

Growth Efficiency Excellence

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

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Risk name and description Mitigation Impact

SUPPLY CHAIN RISK

Supply chain risk at the Group covers both technical

and non-technical aspects and spans multiple

departments across the organisation. Itrelates

totheend-to-end flow of goods, services and

counterparties involved in aircraft operations,

maintenance, and supporting activities. Disruptions

or misalignment at anystage of this chain may affect

operational continuity, efficiency or service delivery.

The Group manages supply chain risk through coordinated cross-functional processes, clear roles and responsibilities, and close

interaction between involved departments. Particular focus is placed on the technical challenges of the industry-wide Pratt &

Whitney issue in the supply chain, which requires enhanced coordination between engineering, operations, fleet planning and

procurement teams.

Risk level:

Risk exposure trend:

Link to strategy:

CREDIT RISK

The Group is exposed to credit risk, that of a

counterparty causing a financial loss to the business

by failing to fulfil its obligation. TheGroup’s credit

risk mainly arises from deposits with banks and

otherfinancial institutions, held by counterparties,

receivables from agents selling commercial air

transportation as well as other receivables. We use

external ratings such as S&PGlobal Ratings or its

equivalent in order to measure and monitor our

credit risk exposures towards financial institutions.

The default of a bank counterparty may adversely

affect our financial performance andstability.

Our Cash Management Policy sets the limits and criteria for counterparty banks. It also establishes standard procedures, such

asmonitoring bank limit utilisation, actual or forecasted exposure to accredited banks and reporting to the Chief Accountant,

ChiefFinancial Officer, and the Board of Directors as applicable. The new limits for each bank are reviewed internally before

beingsubmitted to the Board of Directors. The policy is reviewed annually to ensure that it is fit for purpose. To manage credit

riskfrom other counterparties, we have policies and stringent procedures in place, which are regularly implemented and updated

as necessary.

Our Travel Agent Ticketing Authority Policy establishes guidelines and criteria for authorising travel agents to issue tickets.

Havingthis robust policy in place, we are able to ensure that authorised agents have a sound financial standing and adhere

tospecific standards, reducing the likelihood of defaults.

Requiring prepayments and cash deposits from direct agents adds an additional layer of security. It ensures that we have a

financial guarantee in place, reducing the impact of defaults or delayed payments.

Risk level:

Risk exposure trend:

Link to strategy:

LIQUIDITY RISK

The liquidity risk is that the Group may not be able

to meet its present and future short-term obligations

when they fall due. The Group retains financial

flexibility to pursue business opportunities and

adequate access to liquidity to mitigate the effect

of unforeseen events on cash flows.

The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its

liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the

Group’s reputation. Ultimate responsibility for liquidity risk management rests with the Group’s Management. The Group manages

liquidity risk by maintaining adequate reserves, continuously monitoring forecast and actual cash flows and matching the maturity

profiles of financial assets and liabilities; and closely monitors its liquidity position via different ratios (current ratio, cash-to-sales

ratio).

Risk level:

Risk exposure trend:

Link to strategy:

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Link to strategy

Growth Efficiency Excellence

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

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Risk name and description Mitigation Impact

JET FUEL RISK

Fuel expenses remain one of the major costs for

the Group. Jet fuel risk is classified both as the risk

of rising jet fuel prices on local and international

markets, and as the risk of limited availability of

jet fuel in the domestic market due to general

supply constraints in Kazakhstan.

For locally sourced fuel, the Group negotiates prices on a competitive basis with Kazakhstani suppliers with agreed and stable

contracts. We also maintain ongoing negotiations with suppliers regarding price reductions. Another important aspect is our

monitoring of alternative suppliers for domestic and international stations. Where there are no restrictions, Air Astana also applies

a fuel surcharge on international routes as an additional tool for reducing risk.

To reduce its overall consumption of fuel, we have added new, more fuel-efficient aircraft to our fleet in recent years, including the

Airbus A320neo, Airbus A321neo and Airbus A321LR (with a new engine option). Additionally, our pilot training programmes include

skills for efficient fuel management.

We have hedged most of our international fuel uplift exposure for 2025 and continue to hedge 2026 volumes. This is aimed at

reducing fluctuations in fuel prices.

Risk level:

Risk exposure trend:

Link to strategy:

OPERATIONAL RISKS

Risks that the Group could incur losses as aresult

of ineffective operation activities (e.g.excess or

shortage of operating aircraft, low on-time

performance or pilot shortage).

The risk of not being able to carry out regular flight operations on time due to technical or external reasons can lead to significant

costs and reputational damage. We undertake regular delay analysis and delay-related meetings.

The Group employs the required number of qualified pilots in accordance with the annual plan. An effective recruitment

processhas been put in place. Relevant training is provided to ensure the highest professional standards are maintained.

Due to external engine issues, we pay particular attention to the fleet size risk. To manage the risks, the we deliver andredeliver

aircraft in accordance with an approved fleet plan and based on market situation.

Risk level:

Risk exposure trend:

Link to strategy:

CYBER AND INFORMATION SECURITY RISK

Cyber risks are a top priority in the airline sector

asthe use of technology is increasingly integrated

into business processes. With the increased reliance

on technology, companies are now more exposed

to cyberattacks that could lead to data leakage

and significant reputational and financial losses.

To manage these risks, we have put robust cybersecurity measures in place and developed processes to comply with the

bestindustry practices and standards in information security. Employees undergo regular training on information security

andfamiliarisation with the Information Security Policy to enhance their awareness of information security.

Risk level:

Risk exposure trend:

Link to strategy:

Link to strategy

Growth Efficiency Excellence

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

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Link to strategy

Growth Efficiency Excellence

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Risk exposure

No change Increase Decrease

New risk

Risk impact level

Low Moderate High Very high

Risk name and description Mitigation Impact

THE RISK OF THE FAILURE OR SEVERE DEGRADATION OF MISSION-CRITICAL IT INFRASTRUCTURE

Our core processes are dependent on IT services

and infrastructure.

Therefore, effective and resilient IT management

isessential to the business.

To mitigate this risk, we utilise a variety of required systems and equipment. Regular updates of operational systems and firewall

software are conducted. All critical data is stored appropriately, and online and offline backups are created and monitored. In order

to decrease the risk of virus and/or hacker attacks, we use antivirus systems and firewalls, limit access to local and internet

resources and regularly update security systems and applications. Regular external audits increase the Group’s resilience tointernal

and external risk factors.

IT infrastructure is fully geared to support business continuity within the best possible limits with redundancy and backup systems

in place.

Risk level:

Risk exposure trend:

Link to strategy:

COMPLIANCE RISKS part of ESG risks

Facing regulatory non-compliance, including

sanctions breaches, alongside risks of corruption,

fraud and unethical behaviour, represents a risk

forthe Group. These issues can result in legal

penalties, financial losses and reputational harm,

underscoring the need for stringent compliance

frameworks and ethical governance.

We manage risks related to non-compliance, sanctions breaches and unethical behaviour effectively through a robust Compliance

Management System. This includes vigilant monitoring of legislative updates, rigorous due diligence and sanctions screening of

allcounterparties to ensure adherence to legal and ethical standards. The system is bolstered by transparent reporting mechanisms,

such as whistleblowing lines. Comprehensive training is provided to employees, focusing on corporate ethics and the prevention of

conflicts of interest, sanctions and compliance issues. Through these measures, along with continuous monitoring and improvement

processes, we not only address potential and actual compliance risks, but also reinforce our commitment to upholding high

standards of integrity and ethical conduct to safeguard our reputation and operational success.

Risk level:

Risk exposure trend:

Link to strategy:

Insurance

We remain committed to enhancing the Group’s risk management

framework by continuously evaluating its insurance strategies in

response to evolving industry challenges. While maintaining strong

compliance with regulations and our own policies, we aim to

ensure sustainable operations by obtaining financial protection of

the Group’s employees, liabilities, and assets through insurance.

We purchase financially sound insurance coverage through a

transparent process and review this annually.

Aviation insurance

Our aviation risks are placed in the world’s leading insurance

markets through internationally reputable brokers. We cover

ouraviation risks through the following policies:

– Aviation Hull, Total Loss Only, Spares All Risks and Airline

Liability Cover

– Aircraft Repair and Operational Support (Hull deductible) Cover

– Aviation Hull and Spares ‘War and Allied Perils’ Cover

– Aviation War, Hijacking and Other Perils Excess Liability Cover

Non-aviation insurance

We also purchase a range of non-aviation insurance policies.

Theserange from providing cover for our employees against

accidents and medical expenses to reducing the financial risk

ofdamage to our property, interruptions to our business and

general liability.

The programme is complemented by specialist coverages,

including cyber insurance to mitigate financial and operational

disruption arising from cyber incidents, and directors’ and officers’

liability insurance to protect management against personal liability

in the discharge of their duties.

Together, these coverages reduce the Company’s exposure to

unforeseen losses, support strong governance and help ensure

operational resilience and continuity.

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Governance

83 Introduction to Corporate Governance

84 Board of Directors

88 Senior Management team

90 Corporate Governance report:

90 Corporate Governance framework

91 Division of responsibilities

92 Board leadership and Company purpose

98 Composition, succession and evaluation

100 Board committee reports:

100 Nomination and Remuneration Committee report

102 Strategic Planning Committee report

104 Audit Committee report

108 ESG Committee report

110 Responsibility statement

It’s a privilege to take on the leadership

role but also to offer continuity to both

the Company and all our stakeholders

aswe set out to achieve this next

ambitious phase.”

Ibrahim Canliel

CHIEF FINANCIAL OFFICER,

CHIEF EXECUTIVE OFFICER

(from 1 April 2026)

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82AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

INTRODUCTION TO CORPORATE GOVERNANCE

Dear shareholders,

On behalf of the Board of Directors, I am pleased to present the

Corporate Governance report for the year ended 31 December

2025, which outlines the key governance developments during

theyear and how the Board has discharged its responsibilities.

The Board of Directors remains committed to maintaining high

standards of corporate governance, recognising that effective

governance is fundamental to accountability, transparency and

thecreation of long-term value for shareholders.

During the year, the Board of Directors continued to support the

Group’s strategic development while maintaining robust oversight

of financial performance, risk management and regulatory

compliance. Reflecting the Group’s strong performance, a total

dividend of KZT 19.1 billion was declared and paid for 2024.

The Board also continued to oversee the strengthening of the

Group’s risk management and internal control environment to

ensure that governance and control processes remain effective

asthe Group grows. Further details of the work undertaken in

thisarea are provided in the Audit Committee report.

Statement of compliance with

relevant corporate governance codes

Air Astana’s Corporate Governance Code was developed

inaccordance with Kazakhstan law, the rules of the Astana

International Financial Centre and the Company’s own Charter.

Italso aligns with best international practice, including the

principles of the OECD and elements of the 2024 UK Corporate

Governance Code. It was approved by the Company’s shareholders

in February 2024. The Company is required to comply with the

Code – or, where the provisions of the Code have not been

complied with – to provide appropriate explanations.

Throughout 2025, the Company applied all the principles set out

in the Code and has complied with almost all of its provisions,

with the exception of Principle 2.5, concerning the independence

of the Chairman, and the appropriate explanations can be found

on page 98 of this Annual Report.

The Company keeps the principles of the UK Corporate

Governance Code requirements under review, and in 2025,

commissioned an external review of compliance against the

2024 UK Corporate Governance Code. This review identified

opportunities, including engagement mechanisms with the

workforce, that the Company has subsequently adopted, with

the appointment of Diyas Assanov as the designated

Non-Executive director for workforce engagement.

The AIX corporate governance principles

AIX has Corporate Governance Principles and Corporate

Governance Best Practice Standards in place for listed

companies. Air Astana’s Corporate Governance Code is

largelyconsistent with these principles and standards.

Throughout 2025, the Company was in full compliance

withtheCorporate Governance Principles, whereas some of

thestandards were not adopted by the Group. You can find

explanations as to why certain standards were not adopted

onpage 98 of this report.

During 2025, the Board of Directors reviewed its governance

structures to ensure they remain efficient and aligned with

bestpractice. Following this review, the Treasury Committee

wasdissolved and its responsibilities transferred to the Audit

Committee, streamlining oversight at Board level.

Our people remain central to the Group’s success. During 2025,

wecontinued to strengthen the leadership pipeline and succession

planning framework, attracting experienced international leaders

to key senior roles. This work proved its value in practice, supporting

and enabling a confident transition at the Chief Executive level,

more information on which can be found in this report.

Inaddition, a designated Non-Executive Director has been

appointed to oversee workforce engagement, ensuring that the

perspectives of employees are considered in Board discussions.

Further details of the work undertaken in this area are provided

inthe Nomination and Remuneration Committee report.

Promoting a culture of integrity, accountability and ethical conduct

remains a priority for the Board of Directors. During the year, several

key compliance policies were updated, including the Speak Up

Policy, the Group Anti-Corruption Policy and the Group Corporate

Fraud Prevention Policy, reinforcing the Group’s commitment to

maintaining high standards of ethical behaviour.

On behalf of the Board of Directors, I would like to thank the

management team and employees across the Group for their

continued dedication and contribution to the Company’s

performance during the year.

As we progress through 2026, the Board of Directors will continue to

focus on maintaining robust governance frameworks, strengthening

risk and compliance capabilities and supporting the execution of

the Group’s strategy. The Board remains confident that the Group

iswellpositioned to deliver sustainable growth and long-term

value for its shareholders.

Nurlan Zhakupov

CHAIRMAN OF THE BOARD OF DIRECTORS

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83AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD OF DIRECTORS

GRI 2-9; 2-11

An experienced

Board of Directors

At the heart of the Company’s achievements

is a robust corporate structure that enables

reliable operations and sound strategic

decision-making. Our industry-leading

operational performance across the region

and beyond reflects the enduring values and

mission that define our corporate identity.

Nurlan Zhakupov

Chairman of the Board of Directors

Non-Executive Director

Representative of the shareholder – Samruk-Kazyna JSC

Appointed: December 2023

Qualifications and experience

Nurlan Zhakupov is a graduate of the Moscow State Institute of

International Relations (MGIMO) of the Ministry of Foreign Affairs of

the Russian Federation. He holds a Candidate of Economic Sciences

degree, as well as a Master’s and Bachelor’s degrees in Economics

from the International Economic Relations Department.

Mr Zhakupov has built a significant part of his professional career in

international banking and financial institutions, holding senior and

managerial roles at leading global banks. His experience includes

positions at Royal Bank of Scotland, UBS and Credit Suisse, where he

worked in finance, investment and research functions. He also served

as the Head of the Astana office of UBS, further strengthening his

leadership profile in international financial markets.

In addition, Mr Zhakupov represented Rothschild & Co in Kazakhstan,

advising on investment, development and strategic financial matters.

His private-sector experience also includes roles with international

andinvestment-focused organisations such as Chambishi Metals Plc

and the Eurasian Industrial Association.

In April 2023, Mr Zhakupov was appointed Chief Executive Officer of

National Welfare Fund Samruk-Kazyna JSC, following a career that

combined deep expertise in international banking, investment and

corporate finance with senior leadership experience.

Other appointments

– Chairman of the Management Board of Samruk-Kazyna JSC

– Member of the Board of Directors of Samruk-Kazyna JSC

– Chairman of the Board of Directors of NC KazMunayGas JSC

– Chairman of the Board of Directors of KEGOC JSC

– President of Kazakhstan Aquatics Federation

Aidar Ryskulov

Non-Executive Director

Representative of the shareholder – Samruk-Kazyna JSC

Appointed: September 2023

Qualifications and experience

Aidar Ryskulov holds a Master of Business Administration degree from

Nazarbayev University (Executive MBA). He is a graduate of Karaganda

State University (named after E.A. Buketov) majoring in finance and

credit. He has held senior positions in finance for more than 20 years.

He was a member of the Board of Directors in various companies

andbanks, including Sekerbank T.A.S. (Turkey), Development

BankofKazakhstan JSC, Investment Fund of Kazakhstan JSC,

KazExportGarant IC JSC, Alliance Bank JSC and Samruk-Kazyna

FinanceLLP.

Other appointments

– Managing Director for Economics and Finance of Samruk-Kazyna JSC

– Member of the Management Board of Samruk-Kazyna JSC

– Member of the Board of Directors of NAC Kazatomprom JSC

– Member of the Board of Directors of NC Kazakhstan Temir Zholy JSC

Chair

Audit Committee

ESG Committee

Nomination and Remuneration Committee

Strategic Planning Committee

N S

Overview Other informationStrategic report Financial statements

84AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD OF DIRECTORS CONTINUED

Simon Wood

Non-Executive Director

Representative of the shareholder

BAE Systems (Kazakhstan) Limited

Appointed: January 2019

Stepped down: February 2026

Qualifications and experience

Simon Wood joined BAE Systems PLC in 1996 and has held a number of

senior finance positions across multiple sectors of the Group, including

Military Aircraft, Maritime, Land and Commercial Aircraft.

In addition to his functional role, Mr Wood has also had responsibility

for Strategy and Planning, Business Transformation and Improvement,

Systems Implementation, Customer Relationship Management and

Operational Business Delivery.

Other appointments

– Finance Director of BAE Systems Maritime and Land Sector

– Member of the Chartered Institute of Management Accountants

Bakhytzhan Taubayev

Non-Executive Director

Representative of the shareholder – Samruk-Kazyna JSC

Appointed: February 2026

Qualifications and experience

Bakhytzhan Taubayev graduated from the Kazakh-British Technical

University and the Polytechnic University of Turin. He holds a Master’s

degree in Petroleum Engineering.

He has more than 17 years’ experience in the oil and gas industry,

including both engineering and managerial positions. Over the course of

his career, he has held positions ranging from Drilling Engineer toHead

of the Production Unit, First Deputy General Director and Director of

Production in operating and production companies.

From 2023 to 2025, Mr Taubayev held the position of Director of the

Gas Industry Department at the Ministry of Energy of the Republic

ofKazakhstan.

Since April 2025, he has been Co-Managing Director for Strategy and

Asset Management at National Welfare Fund Samruk-Kazyna JSC.

He is a recipient of ministerial and industry awards.

Other appointments

– Co-Managing Director for Strategy and Asset Management

ofSamruk-Kazyna JSC

– Member of the Management Board of Samruk-Kazyna JSC

– Member of the Board of Directors of NC QazaqGaz JSC

Keith Gaebel

Independent Non-Executive Director

Appointed: March 2020

Qualifications and experience

Keith Gaebel is a leading expert in financial reporting and corporate

governance. During his 25 years’ experience with large international

chartered accounting firms, Mr Gaebel held various positions

including the Head of the Financial Reporting Group (FRG) for the

Commonwealth of Independent States (PricewaterhouseCoopers

– 2000 to 2004; Ernst & Young – 2004 to 2008) and was a Global

Authority on various International Financial Reporting Standards.

Inaddition, as a recognised world-class expert, he was involved

inthe development of various international financial reporting

standards. As Head of the FRG, he supported clients’ public

offerings by reviewing for compliance with financial reporting and

corporate governance. Mr Gaebel was the Ernst & Young Managing

Partner for Central Asia and Caucasus from 2008 to 2013.

Other appointments

– Independent Non-Executive Director in National Payment

Corporation of the National Bank of the Republic of Kazakhstan JSC

(until 18 December 2025)

Chair

Audit Committee

ESG Committee

Nomination and Remuneration Committee

Strategic Planning Committee

Overview Other informationStrategic report Financial statements

85AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD OF DIRECTORS CONTINUED

Janet Heckman

Independent Non-Executive Director

Appointed: January 2019

Qualifications and experience

Janet Heckman holds a Master of Science in Foreign Service from

Georgetown University in Washington, DC. Between 1980 and 2012,

sheheld various positions at Citi with a focus on corporate banking.

She was the Managing Director for Citi’s corporate and investment

banking activities in Algeria from 2008 to 2012. Ms Heckman joined

European Bank for Reconstruction and Development (EBRD) in 2012

asaCountry Director for Kazakhstan. She was a Managing Director

forSouthern and Eastern Mediterranean (SEMED) for EBRD from

January 2017 to December 2019.

Other appointments

– Independent Non-Executive Director – Member of the Board

ofDirectors of Astana International Exchange (AIX)

– Independent Non-Executive Director – Member of the Board

ofDirectors of Citibank Kazakhstan JSC

– Independent Non-Executive Director – Member of the Board

ofDirectors of TBC Bank Group PLC

Yeldar Abdrazakov

Independent Non-Executive Director

Appointed: March 2020

Qualifications and experience

Yeldar Abdrazakov holds a BA and MSc in International Economic

Relations from Yassawi University, Turkistan and has also finished

theGeneral Management Program at Harvard Business School, Boston,

US. Mr Abdrazakov has held senior roles in commercial and investment

banking for over 30 years. He was Managing Director from 1995

to2003 at Kazkommertsbank JSC; CEO from 2002 to 2004 at

KazkommertsSecurities, founder & CEO at the Centras Group since

2004. Mr Abdrazakov is a chartered director at the UK’s International

Institute of Directors (IoD) and Chairman of the Kazakhstan

Competitiveness Council.

Other appointments

– Founder & CEO of the Centras Group

– Member of the Board of Directors of Kazakhstan Stock Exchange JSC

Diyas Assanov

Independent Non-Executive Director

Workforce Engagement Designated INED

Appointed: May 2024

Qualifications and experience

Diyas Assanov holds a Bachelor’s degree in International Relations

andEngineering Systems Management from the United States Military

Academy at West Point and a Bachelor’s degree in International Law

from the Kazakh State Law University, Kazakhstan.

During the last five years, Mr Assanov has served in the role of the

General Director of Siemens in Kazakhstan & Central Asia, as well as

the Head of its Digital Industries and Smart Infrastructure businesses

inthe region. Prior to that, he was the General Counsel of Siemens

Energy in Russia, Eastern Europe and Central Asia.

Other appointments

– Chief Executive Officer of Siemens Kazakhstan & Central Asia

– Deputy Chairman of the Board of Directors of European Business

Association of Kazakhstan

– Chairman of the Association of German Economy in Kazakhstan

Chair

Audit Committee

ESG Committee

Nomination and Remuneration Committee

Strategic Planning Committee

N E

SEA

A NSEA

Overview Other informationStrategic report Financial statements

86AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD OF DIRECTORS CONTINUED

Garry Kingshott

Independent Non-Executive Director

Appointed: August 2019

Qualifications and experience

Garry Kingshott completed studies at the University of New South

Walesin Sydney (Marketing Planning) in 1975 and The Wharton School,

University of Pennsylvania (Strategic Thinking and Management) in 1999.

After a successful early career in various FMCG businesses from 1974

to1990, Mr Kingshott transitioned into aviation, joining Ansett Airlines

(Australia) in 1990. He now has 35 years’ experience in the aviation,

travel and tourism, and airline industries, spanning three continents.

Most recently, Mr Kingshott served Cebu Air Inc. as Chief Executive

from 2008 to 2016, overseeing a successful IPO in 2010, and served as

a member of the Advisory Board at Cebu Air Inc. until June 2022.

Mr Kingshott has been an active Company Director for a variety of

businesses since 1996, including airlines and aviation-related businesses,

travel agencies, tourism and financial services. Mr Kingshott is a

member of the Australian Institute of Company Directors (MAICD).

Other appointments

None

Peter Foster

Executive Director

Chief Executive Officer

(from 1 October 2005 until 31 March 2026)

Appointed: August 2019

Qualifications and experience

Peter Foster served as Chief Executive Officer of Air Astana JSC since

October 2005. He entered the airline industry immediately after

graduating from Cambridge University in 1982, as a management

trainee of John Swire and Sons (HK) Ltd, the owners of Cathay Pacific

Airways Ltd. From 1982 to 1999 he served in a variety of management

and senior management positions with Cathay Pacific Airways in Hong

Kong, Asia, Australia and Europe, and underwent business

management training at INSEAD, France. Mr Foster left Cathay Pacific

Airways in 1999 to head up the rehabilitation team of Philippine

Airlines Inc. He subsequently served as Chief Executive Officer of Royal

Brunei Airlines from 2002 to 2005 prior to his appointment as the CEO

of Air Astana. In the 2015 UK New Year’s Honours List, Peter Foster was

awarded Officer of the Order of the British Empire (OBE) for his services

to British aviation in Kazakhstan.

Other appointments

– Chairman of the Board of Directors of FlyArystan JSC

(until31March2026)

– Chairman of the Supervisory Board of Air Astana Terminal Services LLP

Ibrahim Canliel

Executive Director

Chief Financial Officer

Chief Executive Officer (from 1 April 2026)

Appointed: April 2026

Qualifications and experience

Ibrahim Canliel has been with Air Astana since its early stages in 2003

and has served in a range of roles across the Company. Prior to his

current role of Chief Financial Officer since 2017, he served as Senior

Vice President Commercial Group, Vice President and Senior Vice

President Marketing and Sales and Director Commercial Planning.

Mr Canliel started his career over 35 years ago in the travel industry

and has 26 years of aviation management experience. Prior to joining

Air Astana JSC, he worked for KLM Royal Dutch Airlines, briefly in the

UAE and thereafter based in Kazakhstan in charge of the Central Asia

and Caucasus region. He is currently serving his eighth term as a Board

member at EUROBAK.

Mr Canliel holds a Bachelor’s degree in Economics from Marmara

University, an MBA of the Bosphorus University and more recently

completed the Directors’ Programme at Cranfield University.

Other appointments

– Member of the Supervisory Board of Air Astana Terminal Services LLP

– Member of the Board of Directors of European Business Association

of Kazakhstan

– Chairman of the Board of Directors of FlyArystan JSC (from 1 April 2026)

Chair

Audit Committee

ESG Committee

Nomination and Remuneration Committee

Strategic Planning Committee

Overview Other informationStrategic report Financial statements

87AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

SENIOR MANAGEMENT TEAM

Peter Foster

Chief Executive Officer (until 31 March 2026)

See page 87

Filippos Siakkas

Chief Operating Officer

Years in the Company: 12

Filippos studied Business Management & Accounting before undergoing

Ab-Initio pilot training in the US in 1988. He has 20 years of experience

in airline management and held senior positions in flight operations

and training for Olympic Airways, which he joined in 1989. Heleft

Olympic in 2013 to join Air Astana. At Air Astana, Filippos has focused

on transforming flight crew training with innovative solutions such as

world-leading practical crew resource management, post-command

upgrade training, self-learning in low level training devices and

standardising the pilot selection process. More recently, he managed

the procurement ofa new Airbus A320 full flight simulator in Astana,

the first of its kind in Kazakhstan, which will increase pilot productivity

and raise operational and training standards. Since 2020, he has been

involved in decision-making and management of key operational and

business aspects, projects and targets. In November 2022, he was

appointed to the role of Chief Operating Officer.

Gerhard Coetzee

Chief Safety Compliance Officer

Years in the Company: 20

Gerhard started his career as a South African Air Force navigator,

completing his service in the position of Staff Officer Flight Safety

responsible for Accident Prevention and Aviation Safety, including CRM,

programmes. He has practised and held formal appointments in aviation

safety and flight operations management for the past 35 years, including

as managing consultant with BAE Systems for seven years and with

AirAstana the past 16 years. Gerhard helped establish the Safety

Management System in Air Astana at start-up and, since 2006, isalso

responsible for the Compliance Monitoring programme, managing an

extended team of dedicated staff. Gerhard’s contribution to safety

andoperational performance has been formally acknowledged by

various organisations, including the SAAF, FAA and NIMA as well as BAE

Systems. Heholds an honours degree in transport economics from

theUniversity of South Africa, is a qualified Air Accident Investigator

with qualifications in Aviation Safety Programme Management,

CrewResource Management and Flight Procedure Design.

Yevgeniya Ni

Chief Human Resources Officer

Years in the Company: 24

Yevgeniya graduated from Karaganda State University with a degree

inforeign languages and adegree in law. She started her career at

AirAstana as an Executive Assistant to the President in 2002, and since

2005, heads the Human Resources and Administration Department,

responsible for overall HR function and services, including Recruitment,

Training, HSE,and Facilities Management. Under her leadership, the

Company introduced a transparent system of recruitment and corporate

training, aswell as an employee performance appraisal and remuneration

system. The Company holds the following HR awards: ‘WOW HR’ in

2018–2019, ‘Best HR Brand in Central Asia’ in 2017–2020 (Headhunter),

‘Best HR Director’ in 2018–2019 (Growth Forum Kazakhstan), ‘Best

Employer’ in 2016–2020 by Universum and ‘Best Employer in Transport

and Logistics’ in 2020–2021 (Randstad Employer Brand Research).

Yevgeniya is a certified Senior Professional in Human Resources –

International, member of Airline People Directors Council (APDC) and

regularly takes part in professional conferences as an expert and speaker.

Ibrahim Canliel

Chief Financial Officer

Chief Executive Officer (from 1 April 2026)

See page 87

Overview Other informationStrategic report Financial statements

88AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

SENIOR MANAGEMENT TEAM CONTINUED

Gonçalo Pires

Chief Financial Officer

Years in the Company: from 1 March 2026

Gonçalo Pires joined the Air Astana Group asChief Financial Officer,

effective 1March2026.

Since 2021, Gonçalo has served as CFO of TAP AirPortugal, where he

led the redesign and implementation ofthe airline’s restructuring plan

and launched several digitalisation initiatives to strengthen financial

performance and operational efficiency.

Prior to TAP, his career spanned nearly two decades in the finance

sector, including senior roles within investment banking. He brings

extensive experience in corporate finance, structuring, capital markets

andfinancial transformation.

Gonçalo holds a degree in Economics from NOVA University Lisbon

andwill be based in Almaty, where AirAstana is headquartered.

Yerdaulet Shamshiyev

Chief Government Relations Officer

Years in the Company: 23

Yerdaulet was one of Air Astana’s first employees and has over

20years’ experience in aviation. Hejoined the airline as Chief

Representative in the Beijing office in 2002. In 2009, he was appointed

Regional General Manager China and Mongolia of Air Astana.

Hecurrently holds the position of Chief Government Relations Officer.

Prior to joining Air Astana, Yerdaulet worked at the Almaty International

Airport and Air Kazakhstan airline. Hegraduated from the Beijing

Language University and Academy of Civil Aviation, Almaty.

Piyush Taori

Chief Digital and Information Officer

Years in the Company: 3

Piyush has a Bachelor’s degree in Electronics Engineering and a Master’s

degree in Software Systems from Birla Institute of Technology & Science,

Pilani in India. He joined Air Astana group as CIO forFlyArystan in

August 2023 and was subsequently appointed Chief Digital and

Information Officer for the Air Astana Group. Prior to joining Air Astana,

Piyush worked in the Middle East for Emirates Airlines, Qatar Airways

and Gulf Air for well over two decades. He held different IT management

and senior management roles in these airlines, heading IT at Gulf Air

just before joining Air Astana. Piyush has substantial experience of

leading large teams and managing large-scale in-house software

development, including large product development. In his previous

roles, he also led large-scale digital transformation programmes,

driving core modernisation of IT infrastructure and cloud migration.

Overview Other informationStrategic report Financial statements

89AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

CORPORATE GOVERNANCE REPORT

Corporate governance framework

Air Astana JSC recognises that sound governance enables responsible,

accountable and effective management capable of delivering

sustainable stakeholder value. Our corporate governance framework

is founded on the core principles of integrity, fairness, equality,

transparency, accountability and commitment to our values.

We have established a corporate governance framework that

ensures robust board governance procedures, strong internal

control systems, and clear accountability and transparency

mechanisms. We have adopted various codes and policies to

embed best practice corporate governance throughout all

organisational levels. Through these practices, we aim to create

and foster an efficient and sustainable operating environment that

serves our stakeholders’ long-term interests. Through continuous

enhancement of our governance practices, the Group is committed

to securing ongoing growth and financial stability.

The roles and competencies of the Company’s management and

executive bodies are clearly set out in the Charter, Corporate

Governance Code and internal documents of the Company

available at ir.airastana.com.

GRI 2-12

Board of Directors of Air Astana JSC

For more, see page 84

ESG Committee

For more, see

pages108–109

Audit

Committee

For more, see

pages 104–107

Strategic

Planning

Committee

For more, see pages

102–103

Nomination and

Remuneration

Committee

For more, see

pages100–101

CEO

General Shareholders Meeting

Corporate Secretary

Internal Audit Service

Compliance Service

Overview Other informationStrategic report Financial statements

90AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Division of

responsibilities

Air Astana JSC is committed to maintaining

high standards of corporate governance.

The aims of its corporate governance framework are to:

– manage with due responsibility, accountability and

effectiveness in order to maximise Group and shareholder value

– provide transparency and due disclosure of information

– ensure the effectiveness of risk management and its internal

control system

The nine members of the Board of Directors – three Non-Executive

Directors, five Independent Non-Executive Directors and the

ChiefExecutive Officer of the Company representing the Senior

Management Team – uphold corporate governance principles and,

in doing so, ensure the Company generates long-term shareholder

value through its safe, sustainable and successful operations.

GRI 2-13; 2-16

CORPORATE GOVERNANCE REPORT CONTINUED

Board roles and responsibilities

Role of the Chairman

The Chairman, who is a Non-Executive Director, is responsible

forboth the leadership, and the effectiveness, of all the functions

ofthe Board. In this role, he is supported by the Independent

Non-Executive Directors. The Chairman oversees the work of

theBoard of Directors, ensures the Board’s effective performance

across its areas of responsibility and that all Directors make a

contribution to the Board’s activities, including interaction with

theCompany’s Chief Executive Officer.

Role of Non-Executive Directors

Any shareholder can nominate Non-Executive Directors

tobeelected by the General Meeting of Shareholders, subject

tocompliance with the Company’s Charter. These nominees bring

diverse financial and operational experience and expertise to the

Board and its Committees, as well as adding an external perspective

and objectivity to the Board’s decision-making. In addition to their

involvement with the development, approval and review of Group

strategy, the Non-Executive Directors are able to provide constructive

appraisals of the performance of the Executive team.

Role of Independent Non-Executive Directors

The Board is balanced by the selection of Independent Non-Executive

Directors, who complement the composition of the Board through

their skills, valuable experience and diversity. Independent Directors

provide a fresh perspective and objectively assess the Group’s

strategy, goals and situation. They provide an independent, external

perspective, offering guidance, oversight and strategic input.

Role of the Chief Executive Officer

The Chief Executive Officer sits on the Board of Directors, has

responsibility for the day-to-day activity of the Company, and

hasalegal mandate to make decisions on any matters relating to

the activity of the Company that are not, under the JSC Law, other

legislative acts of Kazakhstan or the Charter, within the competence

of other bodies or officers of the Company.

Supporting roles

Role of the Corporate Secretary

The Corporate Secretary plays a major role in enabling open dialogue

across the business, while also ensuring all the Company’s various

governing bodies uphold both legislative and Company requirements.

The Corporate Secretary’s role is also to safeguard the rights of

allshareholders and ensure shareholder communications are

consideredby the relevant body, and resolve any disputes involving

shareholders’ rights.

Role of the Internal Audit Service

The Internal Audit Service provides risk-based and objective assurance,

advice and insight to protect and enhance the value of the Company.

Role of the Compliance Service

The mission of the Compliance Service is to assist the Company in

achieving its strategic goals in accordance with the requirements of

legislative, ethical and social norms. It ensures the Company meets

itsregulatory obligations across multiple jurisdictions and frameworks.

Overview Other informationStrategic report Financial statements

91AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Board leadership and

Company purpose

The role of the Board of Directors

The principles of the Air Astana’s Corporate Governance Code form

thebasis on which the Company operates – as a safe, sustainable and

successful business, to generate long-term value for its shareholders.

Responsibility for upholding these principles, allied with a watching

brief over all risks and internal controls, lies with the Board of

Directors. Day-to-day management of the business is delegated

totheCEO, whose activity is supported by the Executive team.

The Company’s Board of Directors is guided by the Company’s

Charter, Corporate Governance Code and follows an annual activity

plan and meeting schedule. The Board of Directors can also review

matters beyond its activity plan, if necessary.

Conflicts of interest

The Company’s Code of Conduct requires employees to report

conflicts of interest through established procedures. All potential

oractual conflicts of interest are carefully analysed and mitigation

measures are implemented to minimise any risks arising from

them. A dedicated policy for preventing and resolving conflicts

ofinterest is also in place, which outlines the types and causes

ofconflicts of interest, and prevention procedures, as well as

regulating conflict settlement actions of the Company’s bodies.

There are no material conflicts of interest between any Director

orsenior management’s duties to the Company in their private

interests, except for those disclosed elsewhere in this report.

Noarrangements or understandings with the shareholders,

customers, suppliers or other parties influence Director or

seniormanagement selection. There are no family relationships

between any of the Directors or Senior Managers.

The Board of Directors has a statutory duty to act in good faith,

serve the best interests of the Company and its shareholders,

andmaintain confidentiality of all information on the Company’s

activities, for a minimum of three years after termination of

authorities. Members are required to monitor and, to the extent

possible, eliminate potential conflicts of interest, including

preventing theunlawful use of Company assets in interested

partytransactions.

Directors of the Board are obliged to disclose information on

persons they are affiliated with. Under the JSC Law, related party

transactions require Board or shareholder approval, with conflicted

members excluded from voting.

Our purpose, values and culture

For over two decades, Air Astana has been instrumental in

connecting Kazakhstan to the world and vice versa, through its

flight connections with major neighbouring regions. Since launching

FlyArystan in 2019 to promote flights across the world’s largest

landlocked country, we have increased mobility by significantly

reducing travelling times and created stronger links between

communities.

This has, in turn, bolstered economic growth by enabling new

employment opportunities through emerging small businesses,

and infrastructure development through the opening and

expansion of local airports. With a strong position in Kazakhstan’s

domestic market and in the neighbouring Central Asia and

Caucasus regions, the Group continues to extend its coverage

withinternational flights within megamarkets.

We believe our focus on excellence will be the major influence

inpositioning ourselves as one of the finest airline groups in the

world. It is one of the pillars on which we have built our status

asasignificant economic and social enabler within Kazakhstan.

This is equally true for our employees, for whom we have created

a positive work environment through our corporate values and a

culture of recognition. Our business ethos is embedded throughout,

with our commitment to our HEART and CHARM values, which

reward and provide equal opportunities at every level. Leading by

example, our senior management promote our strategy, values

and beliefs across the business to ensure our employees are fully

engaged with, and enthusiastic about, the Group’s vision for

thefuture.

CORPORATE GOVERNANCE REPORT CONTINUED

Our culture

Our corporate culture reflects our core values and ambitions, as well as our commitment to all our stakeholders.

Excellence lies at the centre of all we do and, by embedding it into our culture, we build an engaged and satisfied

workforce that is fully invested in our core values.

Connecting Kazakhstan and

the rest of Eurasia with true

Kazakh hospitality

Growth

Excellence

Efficiency

Our purpose Our strategy Our values

Air Astana’s HEART values:

Hospitable, Efficient, Active,

Reliable,Trustworthy

FlyArystan’s CHARM values:

Creative, Happy, Agile,

Reliable,Modern

Overview Other informationStrategic report Financial statements

92AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

How the Board considers stakeholders’ interests

The Board recognises that understanding and considering

stakeholder interests is fundamental to effective decision-making

and the Group’s long-term success. When setting strategy and

overseeing business performance, the Board evaluates how its

decisions may impact different stakeholder groups. This

consideration informs the Board’s approach to strategic direction,

management oversight, and sustainability planning, ensuring that

stakeholder perspectives shape the decisions that drive the

business forward.

Relations with shareholders

Strong investor relations are fundamental to delivery on our

commitments to shareholders. The Chair of the Board has effective

channels in place to ensure shareholder concerns or issues are

appropriately addressed.

Shareholders play a vital role in safeguarding corporate governance

standards through their participation in key decisions. This includes

the re-election of directors, where shareholders can assess each

director’s continued suitability and contribution to board

effectiveness. Shareholders also exercise oversight through

votingon remuneration policies and practices. These governance

mechanisms provide shareholders with direct influence over board

composition and accountability frameworks.

Share ownership

Air Astana JSC was founded by the Government of the Republic of

Kazakhstan and BAE Systems plc, with initial shareholdings of 51%

and 49%, respectively. Their partnership supported the Group’s

development over more than two decades. The Air Astana Group

floated on three stock exchanges in February 2024, with both

founding shareholders reducing their shareholdings as part

oftheIPO to 41% and 16.95% accordingly and a public free float

being established.

During 2025, BAE Systems (Kazakhstan) Limited (a subsidiary of

BAE Systems plc, a British organisation involved in the development,

delivery and support of advanced defence, security and aerospace

systems) sold 9,000,000 Global Depositary Receipts (GDRs),

representing 10.1% of the Company’s issued share capital,

aspartof an accelerated bookbuilding process. In March 2026,

BAESystems disposed of its remaining 6.9% stake, thereby fully

exitingfrom Air Astana JSC’s share capital.

In March 2026, BAE Systems announced the disposal of its

remaining holding in the Company, completing its exit from the

share register. This transaction has increased the Group’s free float

and is expected to support improved market liquidity over time.

The Group sees this as a positive development in the evolution of

its shareholder base and intends to continue broadening

engagement with investors both domestically and internationally.

Management continues to pursue an investor relations campaign

to build awareness among investors seeking exposure to the

Central Asian aviation sector. The Company views the current

liquidity profile as an opportunity to attract long-term strategic

shareholders who appreciate the fundamental value proposition,

rather than purely as a limitation to address.

Shareholder evolution

Air Astana – Free float evolution (%)

52.5

41.041.041.0

6.5

17.0

35.5

45.6

6.9

1 December 2025 Post-BAE Transaction

Post-Final BAE Transaction

Samruk-Kazyna JSC BAE Systems UAPF Free Float

Major shareholders

As of 31 December 2025, the Company had been notified under

Rule 5 of the Disclosure and Transparency Rules of the Financial

Conduct Authority of the following interests of 5% or more in its

total voting rights:

Shareholder

% of voting

rights

No. of voting

rights

Samruk-Kazyna National Welfare Fund JSC 41 146,175,791

BAE Systems (Kazakhstan) Limited

6.85 6,10 9,982

Unified Accumulative Pension Fund JSC 6.5 23,218,330

1 In 2026 BAE Systems disposed of remaining holding in the Company and

exited from the share register.

Current and future regulatory filings by shareholders will be

available on the Group’s website at ir.airastana.com.

Dialogue with shareholders

The Company engages with shareholders to engender dialogue

and feedback. The Independent Directors on the Board are asked

to ensure all stakeholder interests are taken into account in

decision-making, having ascertained any concerns or queries

independent of the major shareholders and Executive team.

Following the announcement of Peter Foster’s intention to resign

as Chief Executive Officer, the Board proactively engaged with the

shareholder base to provide assurance regarding business continuity

and succession planning. All shareholders were contacted to

communicate the planned and orderly transition arrangements,

with major investors receiving briefings on the recruitment

process. Feedback from shareholders was uniformly positive,

particularly regarding the extended handover period that will allow

for comprehensive knowledge transfer, and the decision to retain

Peter Foster as a Board advisor to preserve his deep institutional

expertise. Ibrahim Canliel’s appointment was well received by

investors, who valued both his familiarity with the Company as

Chief Financial Officer, and his strong commercial background,

which together position him to maintain strategic momentum

while bringing fresh perspective to the role.

CORPORATE GOVERNANCE REPORT CONTINUED

1 The chart does not reflect other small and variable stock holding.

Overview Other informationStrategic report Financial statements

93AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

CORPORATE GOVERNANCE REPORT CONTINUED

Constructive use of the General Meeting of Shareholders

The General Meeting of Shareholders is the highest governing

body of the Company, and has the authority to make decisions

onmajor issues concerning the Company’s activities. Its functions

and activities are defined by the legislation of the Republic of

Kazakhstan, the provisions of the Charter and internal documents.

The General Meeting of Shareholders can be convened by the

Board of Directors, which forms the agenda for consideration

bythe General Meeting of Shareholders, subject to approval by

theGeneral Meeting of Shareholders. If the General Meeting of

Shareholders is convened upon request of a Major Shareholder,

theBoard of Directors cannot of its own initiative introduce any

changes to the agenda or propose a procedure for the conduct

ofan Extraordinary General Meeting of Shareholders. However,

theBoard of Directors may propose inclusion of additional items

onto the agenda at its own discretion, subject to further approval

of the General Meeting of Shareholders.

The Annual General Meeting of Shareholders is held once a year,

within five months of the end of the financial year, and considers

the annual financial statements of the Company, the audit report

on the annual financial statements, proposals from the Board of

Directors concerning the procedure for distribution of the

consolidated net income of the Company for the past financial

year, and the amount of the annual and/or special dividend per

one common share, the information on appeals of Shareholders

about acts of the Company and its officials, and the results of

handling them; and other documents at the discretion of the

initiator of the Annual General Meeting of Shareholders.

In 2025, Air Astana held one General Meeting of Shareholders. The

Annual General Meeting of Shareholders held on 29 April 2025:

– approved the consolidated and separate annual financial

statements for the year ended 31 December 2024

– took note of the Board of Directors’ approval of the restated

Dividend Policy Regulations of Air Astana JSC

– approved the dividend payment for 2024

– appointed Ernst & Young LLP as the audit organisation to

perform the audit (review) of the financial statements for

theyears ending 31 December 2025, 31 December 2026

and31December 2027

– considered information on shareholders’ appeals against the

actions of the Company and its officers

– considered information on the amount and composition of

remuneration for members of the Board of Directors and the

Executive Body

– elected the Counting Commission for the term from 1 June 2025

to 1 June 2026

Additionally, in 2026, Air Astana held two Extraordinary General

Meetings of Shareholders, which addressed the following matters:

1. On 15 January 2026, the Extraordinary General Meeting of

Shareholders approved the conclusion of a major transaction

forthe acquisition of Boeing 787-9 type aircraft for the amount

constituting fifty per cent ormore ofthetotal amount of the

balance sheet value of the assets oftheCompany.

2. On 9 February 2026, the Extraordinary General Meeting of

Shareholders approved the following matters: the conclusion of

a major transaction for the acquisition of Airbus А320neo family

aircraft for the amount constituting fifty per cent or more of the

total amount of the balance sheet value of the Company’s

assets; the restated Policy of Remuneration of the Members

ofthe Board ofDirectors; the election and re-election of the

members of the Board of Directors and determination of

theterm of office of theBoard of Directors; theelection of the

Chairman of the Board ofDirectors; and theamount and terms

of remuneration and compensations tothe Independent

Directors.

Bringing the employee voice

intothe boardroom

As part of its efforts to ensure alignment with the UK

Corporate Governance Code 2024 where appropriate, in 2025,

the Board appointed independent Non-Executive Director,

Dias Assanov, to act as a designated non-executive director

for workforce engagement. Mr Assanov’s role will be to

assist the Board in ensuring a deep understanding of the

workforce of Air Astana.

During 2025, Mr Assanov had the opportunity to attend a

number of engagements, including Air Astana’s ‘Heart of

Words’ gala dinner for the top employees as identified by

employee surveys and reviews, which afforded him time

with employees across all levels of the business, where

theculture of Air Astana was truly celebrated. Mr Assanov

also attended the Long Service Awards, where alongside

Independent Non-Executive Director Yeldar Abdrazakov,

hepresented awards to some of the 100 employees

celebrating long tenures with the business.

A comprehensive engagement programme is being

drawnupfor 2026 onwards, to include opportunities to meet

withmanagement at the annual management conference,

collaboration with HR to discuss the employee survey

resultsand site visits to the recruitment and training offices.

These engagements are designed to ensure that the employee

voice is recognised in the boardroom, and that the Board

cantake informed decisions with the additional insight into

employee culture and business practices. It is hoped that

thisfeedback loop will bring reassurance and transparency

todecision-making practices.

Overview Other informationStrategic report Financial statements

94AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Employee engagement

The Air Astana Group is the leading employer in Kazakhstan,

employing 7,211 people across all our operations. We recognise

that the success of our business relies on the dedication and skill

of our employees.

The Group continually engages with employees through various

initiatives, including employee pulse surveys, measures of health,

safety and well-being, diversity indicators, regular communications

from the Chief Executive Officer and conferences held offline and

streamed via YouTube. The Group was the first business in

Kazakhstan to introduce an internal pension programme, and

hasalso introduced long-term incentive programmes. To measure

labour relations, the Air Astana Group works with Gallup to conduct

Employee Social Stability Index surveys bi-annually, and the Board

plays an important role in monitoring the results of engagement

surveys and regular compliance reviews as part of its remit.

The employees of the Company form various professional unions

for representing their interests on various matters: one union

represents the Air Astana Group’s cabin crew, engineers and other

employees, while two other unions represent pilots. The Air

Astana Group recognises the importance of engaging with the

labour unions and other representative bodies across its operations

to promote the success of the business. The Air Astana Group

executes separate standard employment agreements with its

pilots, cabin crew members and other personnel.

The Air Astana Group believes that, by pursuing its corporate

HEART values for Air Astana and CHARM values for FlyArystan,

ithas created a positive work environment for its employees.

Itpromotes a culture of recognition, with a focus on training

anddevelopment, and provides equal opportunities to ensure

itretains its employees and attracts new talent.

The Board of Directors, through its ESG Committee, regularly

considers the reports of the management of the Company on

theresults of Employee Social Stability Index surveys as well

asconsideration of appeals coming from the unions or employees,

if any.

The Chairmen of the Board Committees, meet regularly with

management prior to meetings and at regular intervals throughout

the year.

CORPORATE GOVERNANCE REPORT CONTINUED

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95AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Board activities in 2025

In 2025, the Board of Directors held 15 meetings, including four meetings in person. The attendance by Board members was 100%.

Areas of focus Matters considered Principal risks

Strategy

– Approval of the Annual Budget for 2026 and Business Plan for 2026–2030

– Preliminary consideration of major transactions for the acquisition of Boeing 787-9 type aircraft and Airbus A320 NEO family aircraft

– Approval of the updated Low-Carbon Development Programme

– Commercial risk

– Climate-related risk

– Supply chain risk

– External communication risk

Risk management

Link to strategy

– Approval of the risk appetite and risk capacity

– Quarterly approval of the updated Risk Map and Risk Register and consideration of the reports on realised risks

– Operational safety review at each in-person meeting

– All risks

Operations and finance

Link to strategy

– Quarterly review of the report on the results of financial and operational activity

– Quarterly review of the cash forecast updates and treasury reports

– Banks overview for 2025

– Preliminary approval of the annual consolidated and separate financial statements for 2024

– Amendment of the Dividend Policy Regulations

– Proposals on the procedure for distribution of the net income for 2024 and the amount of the 2024 annual dividend per one common share

– Approval of the Treasury Policy of Air Astana Group

– Consideration of the Investor Relations updates

– Deciding on share repurchase in the secondary market for the Long-Term Incentive Plan

– Amendment of major transactions for extension and novation of aircraft operating leases

– Deciding on the entering into interested party transactions

– Deciding on increasing the Company’s liabilities by an amount constituting ten (10) per cent or more of the equity capital

– Termination of operating lease agreements for two Airbus A320neo aircraft

– Deciding on the outright sale of three (3) Boeing 767-300ER type aircraft

– Liquidity risk

– Credit risk

– Jet fuel risk

– Commercial risk

– Operational risks

CORPORATE GOVERNANCE REPORT CONTINUED

Link to strategy

Growth Efficiency Excellence

Overview Other informationStrategic report Financial statements

96AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Areas of focus Matters considered Principal risks

Governance, audit

andcompliance

Link to strategy

– Oversight of compliance with applicable corporate governance frameworks and listing requirements

– Consideration of shareholder appeals and results of consideration

– Matters relating to remuneration of the Board of Directors and Executive Body

– Approval of the Annual Report for 2024

– Amendments to Audit, ESG, and Strategic Planning Committee Regulations

– Consideration of results of the Board Self-Evaluation report

– Appointment of the Workforce Engagement Designated Independent Non-Executive Director of the Company and approval of the Terms

ofReference thereof

– Appointment of the Senior Advisor to the Board of Directors

– Selection and fee determination for audit organisations and appraisers

– Consideration of the information on the participation of the Company’s External Auditor in the Company’s selection process of a provider

ofadvisory services

– Abolition of the Treasury Committee

– Internal Audit Service: activity reports (quarterly), Strategic Plan 2025–2029, performance evaluation, Annual Audit Plans, budget approvals,

KPIsettings, staffing changes, remuneration reviews, and amended regulations and procedures

– Compliance Service: quarterly reports, approval of restated policies (Speak Up Policy, Corporate Fraud Prevention Policy, Anti-Corruption Policy,

Policy on the Engagement of Audit Organisations)

– Compliance risks

– External communication risk

People

Link to strategy

– Approval of eligible employee lists for ESOP, IPO bonus (second tranche vesting), and Long-Term Incentive grants (2025-2027)

– Determination of Company Performance Bonus for 2024 and Year-End Bonus for 2025

– Approval of Performance Bonus KPIs for 2026 and Long-Term Incentive KPIs for 2026–2028

– Approval of Total Shareholder Return (TSR) calculation approach for LTIP

– Remuneration reviews for Internal Audit Service and Corporate Secretary

– СEO succession, appointment and contractual matters

– Human resources risk

Matters related to

subsidiaries (FlyArystan

JSC and AATS LLP)

Link to strategy

– Establishment of Air Astana Terminal Services Limited Liability Partnership with 100% participation interest of the Company in the charter

capital

– Approval of Group policies for FlyArystan JSC and AATS LLP

– Subsidiary governance and remuneration matters

– Selection of audit organisation for financial statement reviews (2025–2027) for FlyArystan JSC

– Approval of Annual Budget for 2026 and Business Plan for 2026–2030 of FlyArystan JSC

– Approval of the audited annual financial statements for 2024 and decision on the non-payment of dividends by FlyArystan JSC

– Commercial risk

– Operational risk

– Compliance risk

– Human resources risk

CORPORATE GOVERNANCE REPORT CONTINUED

Link to strategy

Growth Efficiency Excellence

Overview Other informationStrategic report Financial statements

97AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Composition, succession

and evaluation

The process for Board nominations is led

bythe Nomination and Remuneration

Committee, which also ensures the Company

has succession plans in place for both Board

and senior management.

Board composition and independence

The Board is elected by cumulative voting at the General Meeting

of Shareholders, unless one candidate is proposed to be elected

tofill one vacancy.

Mr Nurlan Zhakupov, Chairman of the Board since December 2023,

is nominated by the shareholder National Welfare Fund Samruk-

Kazyna JSC. To mitigate any concerns about independence, we

have five Independent Non-Executive Directors on the Board.

Air Astana acknowledges that Standard 20 of the AIFC Market

Rules recommends the Chairman of a Board of Directors meet the

criteria for independence. However, as set out in the Charter and

as adopted by principle 2.5 of the Code, the Chairman of the Board

of Directors shall be elected from among the members of the

Board of Directors being representatives of the shareholder who

owns the largest number of shares at the relevant time, provided

this shareholder owns more than 30% voting shares. In accordance

with these provisions, Samruk-Kazyna, as the largest shareholder

at the date of this report, and holding on that date 41% of

theshare capital of the Company, has appointed Mr Zhakupov,

arepresentative of Samruk-Kazyna, as Chairman. Mr Zhakupov

doesnot therefore meet the criteria of independence.

According to the Standard 26A of the AIFC Market Rules, the Board

should include the Chief Executive Officer and the Chief Financial

Officer. The Company has partly adopted the standard.

Following the decision of Peter Foster to retire from the role

ofChief Executive Officer in March 2026, the Board, supported

bytheNomination and Remuneration Committee, oversaw the

searchprocess that resulted in the appointment of Ibrahim Canliel

(current Chief Financial Officer) as Chief Executive Officer, effective

1 April 2026, and ensured a stable and orderly transition plan was

in place to navigate the leadership changes. The Board further

recommended to the General Meeting of Shareholders the

appointment of Bakhytzhan Taubayev as a shareholder

representative of Samruk-Kazyna JSC, following the sale of a

significant shareholding by BAE Systems (Kazakhstan) Limited

andsubsequent planned resignation of Simon Wood as a

representative of that shareholder.

When making appointments to the Board, the Nomination

andRemuneration Committee take into account a number of

considerations, including Board diversity, independence and the

combination of skills, knowledge and experience of the Directors.

More information on this process can be found in the Nomination

and Remuneration Committee report.

We believe the composition of the Board remains appropriate

and,in line with the Company’s corporate governance framework,

is well balanced and supports the Group’s strategic priorities, as

well as providing the appropriate representation of shareholders’

interests. The Nomination and Remuneration Committee keeps

theBoard composition under review to ensure the Company

hasthe appropriate balance of skills, competencies and diversity

inits leadership positions.

The Board is satisfied that each of its Directors is able to allocate

sufficient time, and discharge his or her duties effectively, as part

of Air Astana’s Board.

CORPORATE GOVERNANCE REPORT CONTINUED

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98AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

CORPORATE GOVERNANCE REPORT CONTINUED

Board evaluation

As set out in its Corporate Governance Code, and in line with

international best practice, the activities of the Board of Directors

are subject to an external independent evaluation every three

years. In 2023, the external evaluation was undertaken by Nestor

Advisors Ltd (now Sodali & Co), a London-based specialist corporate

governance advisory firm, with subsequent supported self-

assessments in 2024 and 2025.

The supported self-assessment evaluation was conducted through

online questionnaires, using feedback and evidence from the

previous external evaluation as the basis for areas of focus and to

target any areas previously identified as requiring additional input

or oversight from the Board of Directors.

The findings from the 2025 evaluation reflected an ongoing

satisfaction with the Board’s collaborative functioning, which

wasseen as reassuringly stable. Constructive information flows

and interaction with management, as well as the focus on risk

governance and internal controls, was seen to provide a strong

foundation for the effective functioning of the Board. The Board

also identified areas and opportunities to further improve, noting

that the area of gender diversity remained a key consideration

forthe Board going forward, as well as ensuring that there was

acontinued focus on succession planning and maintaining the

rightbalance of skills and industry experience across the Board

ofDirectors.

In 2026, the Board will undertake an externally facilitated evaluation

that will also assist in monitoring the implementation of the

recommendations identified during previous assessments.

Board induction and training

Upon appointment, all Directors receive a tailored and thorough

induction programme, undertaken across the first six months of

their appointment and is based on each individual Director’s

previous experience and background. This programme is designed

to bring them up to speed quickly on the Group’s operations and

business strategies, and covers matters including key assets,

management bodies, policies and practices, the corporate

governance framework, as well as the wider industry sector and

other information necessary to perform their duties as members

ofthe Board of Directors.

During the year, all members of the Board received ongoing

training on the legal and regulatory obligations and governance

requirements of a listed company, including reporting and

ongoingobligations. Additional sessions were arranged to focus

onUKcorporate governance and industry best practice, covering

market abuse regulations, diversity reporting, directors’ duties and

horizon scanning of regulatory and legislative changes. The Board

demonstrates collective expertise in cybersecurity, including the

presence of a member who has completed specialised training in

this field.

A personalised induction programme was implemented for

Ibrahim Canliel following the announcement of his appointment

asChief Executive Officer, effective 1 April 2026, taking into

account his previous knowledge and experience of having

beenwith Air Astana for 22 years.

Information and support

The Chairman of the Board is responsible for ensuring the

timelyreceipt by the Directors of the accurate, clear and relevant

information needed to enable them to perform their duties.

The Senior Management Team and Internal Audit Service are

obliged to provide such information and the Directors may request

further clarifications and explanations as necessary. The Board of

Directors and its Committees are entitled to use the services of

external experts, consultants and additional resources to enable

them to carry out their duties in full. Financial provision for this is

made in the Company’s budget each year.

All Directors have access to the advice and services of the

Corporate Secretary, who is responsible to the Board on matters

ofcorporate governance and compliance with Board procedures.

The Corporate Secretary manages the information flow within

theBoard of Directors and its Committees, and also between the

Senior Management Team and the Board of Directors.

The Corporate Secretary has a key role in preparing and overseeing

the Board of Directors’ meetings and the General Meeting of

Shareholders, ensuring the disclosure and dissemination of

information comply with the rights and interests of shareholders.

Re-election

The term of office for each member of the Воаrd of Dirесtоrs is

determined by the Gеnеrаl Shагеhоldеrs’ Meeting but should not

be for less than two уеаrs. Once elected, there is no limit to the

number of times members may be re-elected to the Воаrd of

Dirесtогs. This is in line with the Company’s Charter and is subject

to satisfactory performance. The effectiveness and commitment

ofeach Board member are also reviewed regularly, to ensure the

interests of the shareholders are fairly and objectively represented.

Taking account of the other offices and interests held by the

current Independent Directors, the Board is satisfied with the

individual skills, relevant experience, contributions and time

commitment of each.

GRI 2-18 GRI 2-17

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99AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS

Roles and responsibilities

The Nomination and Remuneration Committee develops

recommendations for the Board of Directors regarding the

recruitment and selection of members of the Board of Directors,

theExecutive Body, the head of the IAS, the head of Compliance

Service, the Corporate Secretary as well as other employees whose

appointment requires the approval of the Board of Directors or

shareholders according to the Company’s Charter and the legislation

of the Republic of Kazakhstan. The Nomination and Remuneration

Committee meets regularly and is responsible for the following:

– Developing of requirements for candidate qualifications and

recommendations on election or nomination for the roles of,

among others, the Independent Non-Executive Directors and

the Chief Executive Officer

– Ensuring the Board of Directors has the right balance of skills,

knowledge, independence and experience, having due

regard to diversity

– Development of a succession planning policy for the Board

ofDirectors and Executive Management

– Recommendations on the Remuneration Policy and structure

of remuneration

– Review of the Board’s performance evaluation process

Composition and attendance

Name Position

Meetings

attended

Janet Heckman Chair, Independent

Non-Executive Director 11/11

Garry Kingshott Independent Non-ExecutiveDirector 11/11

Yeldar Abdrazakov Non-Executive Director 11/11

Nurlan Zhakupov Non-Executive Director 11/11

Simon Wood

Independent Non-ExecutiveDirector 11/11

Main activities during 2025

Board and Committees

In 2025, the Committee spent considerable time overseeing the

recruitment process for a new Chief Executive Officer, which

resulted in the appointment of Ibrahim Canliel as Chief Executive

Officer, effective 1 April 2026. It was agreed that Mr Canliel brought

significant experience, both of Air Astana JSC and of the airline

sector generally, and would bring additional financial leadership

capabilities.

The Committee also managed the transition process,

recommending appropriate compensation terms for the outgoing

Chief Executive Officer and approving the employment contract

terms for Ibrahim Canliel. Additionally, the Committee

recommended the appointment of Peter Foster as a Senior Advisor

to the Board of Directors and approved the related Consultancy

Agreement.

The processes and procedures for the recruitment and appointment

of Directors remained thorough and transparent, designed to ensure

the right balance of skills, knowledge, diversity, independence and

experience on the Board of Directors. In consideration of potential

candidates for the role of Chief Executive Officer, the Committee

drew up a long list of potential candidates, with the support of

Korn Ferry, a global consulting firm, who were engaged to support

the Committee and who have no connection or affiliation with

theCompany or individual Directors. Candidates were carefully

considered against agreed skills and experience criteria, and a

shortlist of preferred candidates identified. Following meetings

andinterviews, and taking into consideration any potential conflicts

of interest and due diligence, the Committee recommended its

chosen candidates for consideration by the Board of Directors,

whosubsequently approved Mr Canliel’s appointment.

Nomination and Remuneration Committee report

GRI 2-10

1 Simon Wood resigned with effect from 9 February 2026 and

wasreplacedon this Committee by Diyas Assanov, Independent

Non-Executive Director.

Overview Other informationStrategic report Financial statements

100AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | Nomination and Remuneration Committee

The Committee received presentations and updates from external

consultants on senior management leadership development and

recruitment matters, ensuring robust succession planning

frameworks were in place.

Committee also recommended the appointment of Diyas Assanov

as a Workforce Engagement Designated Independent Non-Executive

Director, strengthening the Board’s engagement withemployees

and stakeholder groups.

The Committee considered the Board’s Self-Evaluation report

andaction plan to improve areas of Board activity based on the

evaluation findings.

In early 2026, following the sale of a significant shareholding by

BAE Systems (Kazakhstan) Limited and the planned resignation

ofshareholder representative Simon Wood, the Committee

considered and subsequently recommended to the Board,

andultimately shareholders, approval of the appointment of

Bakhytzhan Taubayev as a representative of the shareholder

Samruk-Kazyna JSC.

Throughout the year, the Committee also kept under review the

overall composition of the Board of Directors and its various

Committees, and considered that the structure, size and

composition remained appropriate.

Remuneration, compensation and incentive plans

The Committee addressed several important matters related to

remuneration and incentive plans for both Board members and

senior employees of the Group. This included recommending

theamount and terms of remuneration and compensation

forIndependent Directors and the Chief Executive Officer.

TheCommittee also recommended the determination of

remuneration for the President of FlyArystan JSC and approved an

increase in remuneration for the Head of the Internal Audit Service.

The Committee recommended determining the Group Performance

Bonus and 2025 Year-End Bonus and terms for 2026 for employees

whose remuneration is set by the Board of Directors, as well as for

the President of FlyArystan JSC.

The Committee reviewed and updated the Long-Term Incentive

(LTI) and Employee Share Ownership Plan (ESOP) for eligible

employees in terms of the employee grades and lists. Additionally,

the Committee discussed the terms of payment of the 2026–2028

LTI for the Chief Executive Officer and other eligible employees by

establishing KPIs and the targets for 2026–2028 to ensure alignment

with the Group’s strategic objectives and performance goals.

The Committee recommended amendments to the Directors’

Remuneration Policy to reflect evolving corporate governance

practices and maintain competitive remuneration. The revised

Policy introduces additional fees for Independent Directors who

chair Board Committees or perform enhanced roles (e.g. Senior

Independent Non-Executive Director, Workforce Engagement

Designated Independent Non-Executive Director), alongside

theexisting base fee. These changes were informed by market

benchmarking in the aviation sector, regulatory expectations and

the increased scope of Board responsibilities, and are intended

toensure fair, transparent and market-aligned compensation that

supports effective oversight and the Group’s long-term sustainability.

In 2025, the total remuneration paid to Independent Directors

andthe executive body amounted to USD 1,599 thousand.

Priorities for 2026

The Nomination and Remuneration Committee will continue to

fulfil its general responsibilities and carry out its activities according

to the approved plan of work for 2026. The Committee will continue

its focus on ensuring that succession plans for the Senior Management

Team and other key executives within the Air Astana Group support

the Group’s longer-term strategic objectives, as well as ensuring

diversity remains a priority in all appointments and talent

development initiatives.

GRI 2-19; 2-20; 2-21

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101AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS CONTINUED

Composition and attendance

Name Position

Meetings

attended

Garry Kingshott Committee Chair, Independent

Non-Executive Director 7/7

Diyas Assanov Independent Non-Executive Director 7/7

Janet Heckman Independent Non-Executive Director 7/7

Simon Wood

Non-Executive Director 7/7

Roles and responsibilities

The Strategic Planning Committee assists with the effective

performance of the Board of Directors and makes

recommendations to the Board for making decisions on the

following issues:

– Determining the Company’s priority areas of business activity

and development, ensuring the integration of climate-related

and sustainability issues into long-term strategy and business

plans, including emissions reduction, resource efficiency, and

sustainable development objectives

– Approving the long-term strategy of the development, the

medium-term and short-term business plans (development

planand annual budget) and major investment projects

– Reviewing the performance to budget, business plan and

ten-year strategy

– Corporate governance matters

– The Group’s strategy in view of changes in the economic,

political, social and competitive environment, including

climate-related considerations

– Improvements to the Group’s long-term performance and

competitiveness in the aviation transportation market

1 Simon Wood resigned from the Committee with effect from 9 February

2026 and was replaced by Aidar Ryskulov, Non-Executive Director.

Strategic Planning Committee report

Main activities during 2025

Throughout 2025, the Committee prioritised the strategic

management of executive leadership transition, ensuring that both

the resignation of Peter Foster as Chief Executive Officer and the

appointment of Ibrahim Canliel as his successor, effective 1 April

2026, were integral considerations in all strategic planning and

decision-making processes. This approach was designed to protect

and advance shareholder interests during this period of leadership

change.

As part of its role in considering long-term strategic development,

during the year, the Committee reviewed the Air Astana Group

fleet update and recommended the purchase of Boeing 787-9

aircraft and Airbus A320 NEO family aircraft. In addition to being

both fuel-efficient and having range efficiency, the order will allow

the Group further flexibility in meeting customer demand and

support the Group’s long-term priorities as it follows a ‘going

global’ strategy. The Committee also reviewed the Air Astana

Group fleet update and supported the proposed outright sale

ofthree Boeing 767-300ER aircraft.

Overview Other informationStrategic report Financial statements

102AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | Strategic Planning Committee

The Committee continued its work supporting the implementation

of the proposal of the management on the creation of a new legal

entity for the provision of ground handling services wholly owned

by the Group, culminating in the announcement in June 2025 of the

registration of Air Astana Terminal Services LLP. The LLP will

support the growth of both Group brands and contribute to

improved operational efficiencies.

At each meeting, the Committee received updates from the

Investor Relations team and made recommendations to the Board

on various related matters arising from these updates, maintaining

the focus on the Company’s post-IPO performance and execution

of the business strategies the Company committed to investors.

The Committee also engaged in regular reviews of the Group’s

performance against the budget and cash forecast reports. It also

conducted provisional discussions regarding the 2024 dividend

andspecial dividend payment, recommended amendments to

theDividend Policy Regulations and advised on the distribution

procedure for the Company’s net income for 2024, including the

dividend amount per common share.

The Committee recommended approval of both Air Astana’s

Annual Budget for 2026 and the Business Plan for 2026–2030

andof FlyArystan’s Annual Budget for 2026 and the Business

Planfor 2026–2030.

The Committee assessed its own effectiveness based on the Board

Self-Evaluation report, reviewed its 2024 annual activity report and

approved the calendar of activities for 2026, reflecting a commitment

to continuous improvement and forward planning.

Priorities for 2026

The Strategic Planning Committee will continue to fulfil its general

responsibilities with a focus on monitoring new projects and

carrying out its activities in accordance with the approved plan

ofwork, which includes:

– considering the opportunities for improvements of the Group’s

long-term performance and competitiveness

– reviewing the Group’s performance against budget and

businessplan

– reviewing regular updates on the Group’s cash position

– reviewing regular updates on the investor relations

– considering the Annual Budget and Business Plan for the next

five-year cycle

Overview Other informationStrategic report Financial statements

103AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS CONTINUED

Composition and attendance

Name Position

Meetings

attended

Keith Gaebel Committee Chair, Independent

Non-Executive Director 16/16

Janet Heckman Independent Non-ExecutiveDirector 16/16

Yeldar Abdrazakov Independent Non-ExecutiveDirector 16/16

Diyas Assanov

Independent Non-ExecutiveDirector 7/7

Roles and responsibilities

The Audit Committee supports the Board of Directors in overseeing

theGroup’s financial and economic activities, treasury activities,

theeffectiveness of internal control and risk management systems,

the adherence to the corporate governance standards and compliance

with applicable laws and regulations. Its remit also includes monitoring

the independence of internal and external audit, aswellas overseeing

cybersecurity, data protection, privacy practices and related processes,

safeguards, resources and training.

Meetings of the Audit Committee are conducted at least once a

quarter. The Audit Committee is responsible for:

– Overseeing the effectiveness of the Group’s systems of risk

management and internal control, compliance and internal audit

through regular reports from the Risk Management Division, the

Internal Control Service, the Compliance Service and the Internal

Audit Service (IAS)

– Assessing the independence of both the external auditor and the

Internal Audit Service

– Recommending to the Company’s Board of Directors on the

appointment, reappointment or change of the external auditor,

remuneration of the external auditor and the evaluation of the

quality of its services, reviewing and approving the external

auditor’s participation in the selection process for non-audit

services, where appropriate

– Advising the Board of Directors on determining the number of

employees, appointing or terminating of employees, defining

the procedures for the work of the Internal Audit Service, and

determining the amount and terms of remuneration and

incentives of the employees for the Internal Audit Service

– Considering updates from the Information Technology and

e-Business Department regarding cybersecurity, data protection,

privacy issues and key initiatives and projects in these areas

– Reviewing reports from the Company’s management and

external auditor on material accounting matters and judgements

1 Detailed biographies are provided on page 84 of all members of

theAuditCommittee. The Chairman of the Committee has extensive

experience and expertise in financial reporting and isconsidered to have

recent and relevant financial experience. All members of the Committee

are Independent Non-Executive Directors and the Board is satisfied that

the Committee as a whole hasthe relevant financial experience and

competence in the sector in which the Company operates.

2 Member of Committee since 31 July 2025.

Audit Committee report

Main activities during 2025

Financial reporting

– Review of reports from the external auditor on the results

oftheaudit/review of the consolidated financial statements

forthe year ended 31 December 2024, and interim financial

information for the six months ended 30 June 2025

– Review of the financial statements of the Group to ensure

integrity and consideration of the process for confirming and

recommending to the Board that the 2024 Integrated Annual

Report and Accounts is fair, balanced and understandable

– Preliminary approval of audited annual consolidated and

separate financial statements for 2024

– Review of the external auditor’s views on significant accounting

matters and accounting policies applied in the financial

statements of the Group

– Consideration of External Auditor’s Audit Planning report for 2025

External auditor

– Determination of the auditing organisation performing the audit

(review) of the financial statements for the year ending 31 December

2025, 2026 and 2027, and determination of the fee for such services

– Deciding on uniting and conducting a single selection procedure

in respect of the selection of a single external auditor for the

audit of financial statements of Air Astana JSC and FlyArystan

JSC for the years 2025–2027. Deciding on the composition of the

unified commission on the selection of a single external auditor

– Preliminary approval of the amended Procedure for selection of

the audit organisation

– Consideration of the status of the selection of an external

auditor for 2025–2027

Overview Other informationStrategic report Financial statements

104AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | Audit Committee

– Preliminary approval of participation of the external auditor

inthe process of selection of the supplier of advisory services

related to climate change and legal advisory support services

Internal Audit Service (IAS)

– Regular reports on the activities of the IAS

– Performance evaluation of the IAS for 2024

– Changes to the 2025 Annual Audit Plan

– Preliminary approval of the Strategy and the Strategic Plan

ofthe IAS for 2025–2029

– Preliminary approval of the Internal Audit Manual

– Preliminary approval of the amended Procedure for

performance evaluation of the IAS

– Preliminary approval of Policy on the Engagement of Audit

Organisations of the IAS

– Changes in the Regulations of the IAS

– Preliminary approval of Annual Audit Plan, budget of the

IASand Key Performance Indicators of the IAS for 2026

– IAS staff changes and remuneration issues

Compliance and ethical conduct

– Regular reports on the activities of Compliance Service including

internal analysis of corruption risks

– Preliminary approval of the restated Air Astana JSC Speak Up Policy

– Preliminary approval of the Group Anti-Corruption Policy

– Preliminary approval of the Group Corporate Fraud

PreventionPolicy

– Launch of the Annual Conflict of Interest Declaration among

AirAstana JSC employees and the Board of Directors

– Regular reports on compliance matters that cover revision of

compliance (corruption) risks at the corporate level, identification

of corruption risks at the business process level, whistleblowing

hotline, internal investigations, conflicts of interest, sanctions

compliance, review and assessment of direct purchases, and

third-party due diligence procedure

– Approval of the risk-oriented annual plan of the compliance

function for 2025

Risk management and internal control

– Quarterly update of Risk Map and Risk Register

– Quarterly reports on realised risks

– Preliminary approval of risk appetite and risk capacity

– Regular reports of the Internal Control Service on internal

controls enhancement project and the status of operating

effectiveness testing of controls

– Preliminary approval of the restated Policy on organisation of

insurance coverage of the Group

Treasury matters

– Quarterly consideration of the treasury reports on placed

deposits and bank exposure

– Regular consideration of cash forecast updates

– Consideration of the annual banks overview in 2025 and

approval of credit limits for the accredited banks

– Recommendations with regard to approval of the Treasury

Policy of Air Astana Group

Other matters

– FlyArystan JSC matters: annual financial statements

– Updates on cybersecurity, key IT initiatives and projects,

artificial intelligence and digitalisation progress, appointment

ofa new IT Security Manager and launch of the Cybersecurity

Committee chaired by the Chief Executive Officer

– Recommendations with regard to the repurchase by the

Company in the secondary market of the Company’s placed

shares and global depositary receipts for the realisation of the

Long-Term Incentive Plan

Risk management and internal control

Whilse the Board is ultimately responsible for evaluation of the

effectiveness of the Group’s risk management and internal control

systems, it has delegated oversight responsibilities to the Audit

Committee. During the year, the Board reviewed the effectiveness

of the internal control system in relation to finance and accounting

and the overall risk management framework through regular

reporting and reviews conducted under the auspices of the Audit

Committee.

In its role of oversight of the Group’s enterprise risk management

framework, the Audit Committee reviews risk reporting,

challenges management on the effectiveness of mitigation

measures and supports the Board in ensuring alignment between

the Group’s riskprofile, strategy and internal control environment.

The Audit Committee acts in the interests of shareholders by

supporting theBoard in ensuring the effectiveness of the risk

management, internal control and corporate governance systems.

Further information on the principal risks and uncertainties, and

mitigation measures, is available on pages 76 to 81 of this report.

Overview Other informationStrategic report Financial statements

105AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | Audit Committee

In 2025, the Audit Committee continued to provide oversight of the

Group’s financial reporting processes, internal control environment

and risk management systems, and throughout the year, reviewed

management’s progress in strengthening the internal control

framework, including enhancements to key processes and the

implementation of automation initiatives. Building on the

externally facilitated review undertaken in 2024 by Ernst & Young

LLP, which assessed the effectiveness of the internal controls and

the Group’s internal control systems as a whole, the Committee

has continued to ensure reliable systems are in place and kept

under review to ensure they manage risk effectively and robustly.

The appointment of a dedicated internal controls expert has

supported the Committee’s commitment to a strong internal

control function.

The Committee also monitored management’s efforts to improve

information security governance, user-access management, and

segregation-of-duties controls, and received regular reports on the

adequacy and timeliness of remediation measures. As part of its

focus on ensuring the Group has an effective information security

system in place, during 2025, the Committee Chair undertook

additional training to enhance his expertise in information and

cybersecurity risks. The Committee as a whole received updates

from management on cybersecurity and information technology

initiatives, allowing it to maintain a focus on operational resilience

in these areas.

Treasury

In January 2025, as part of an initiative to enhance the

effectiveness of the Board of Directors, the structure of the Board’s

Committees was reviewed. Following this review, the Treasury

Committee was dissolved and its responsibilities were transferred

to the Audit Committee.

Within the scope of its authority, the Audit Committee supports the

Board of Directors in overseeing and strengthening the effectiveness

of risk management related to the Group’s treasury activities.

Itsresponsibilities include, inter alia, reviewing the effectiveness

ofinternal controls within the treasury function, ensuring that

treasury policies and procedures remain current andare subject to

continuous improvement, and overseeing treasury operations. The

Audit Committee also regularly reports to the Board of Directors on

key risks and opportunities arising from treasury activities.

Throughout 2025, the Audit Committee monitored the Group’s

treasury activities with regular reports from the Chief Financial

Officer. These reports covered, among other matters, theGroup’s

cash position, deposits placed, outstanding borrowings and finance

lease obligations, and available credit facilities.

Internal audit

Mission and role

The IAS organises and carries out internal audit engagements for

the Group and reports directly to the Board of Directors, with

oversight carried out by the Audit Committee in accordance with

internal documents governing its activities. The appointment and

dismissal of the IAS Head and employees is within the remit of the

Board of Directors, ensuring independence and objectivity of the

function.

The IAS provides independent, risk-based, and objective assurance

and advisory services, insight, and foresight to the Board of

Directors and the Chief Executive Officer designed to strengthen

the Group’s ability to create, protect and sustain value.

Audit process

The IAS continues to strengthen its professional capabilities,

including expanding IT expertise and enhancing its internal

auditmethodology and to keep the high quality of the results

oftheiractivities. Internal audit engagements are planned and

executed using a risk-based and agile approach to ensure timely

and effective delivery of assurance to the Board and senior

management. Inaddition to assurance engagements, the IAS

performs advisory engagements for management and integrates

the assessment of IT general controls into all relevant

engagements.

The IAS operates in accordance with the Internal Audit Manual and

other internal regulating documents which are regularly updated

and aligned with the Global Internal Audit Standards. Continuous

professional development of the IAS employees remains a priority,

recognising that high-performance results depend on strong

technical and analytical competencies.

During 2025, the IAS conducted all internal audit engagements

included into the Annual Audit Plan for 2025. In total, 21 internal

audit engagements were completed across the Group, including

three areas of continuous monitoring, two of which focused on IT.

In addition, a standalone review of artificial intelligence and

digitalisation applications was conducted. All the internal audit

engagements undertaken related to high-priority areas or were

performed at the request of the Board of Directors and the Group’s

management.

The IAS conducts systematic monitoring of the implementation of

audit recommendations issued as part of internal audit engagements.

Regular reports on the implementation of audit recommendations,

including overdue and high-priority recommendations, are provided

to the senior management, the Audit Committee and the Board of

Directors. This process helps ensure continuous improvement of

internal controls, timely mitigation of identified risks and

accountability across the Group.

To enhance audit efficiency, the IAS employs the internal audit

management software TeamMate+ throughout the entire audit

process.

Coordination with Internal Control Service,

RiskManagement Unit, Compliance Service

andExternal Audit

The IAS maintains effective coordination with other assurance and

control functions to ensure comprehensive oversight of the Group’s

governance, risk and control environment, and efficient use of

assurance resources. The IAS shares insights from internal audit

engagements with the Internal Control Service, the Risk Management

Unit and the Compliance Service. The IAS works closely with the

Internal Control Services to support the strengthening of internal

control systems and avoid duplication of control activities.

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106AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | Audit Committee

TheIASregularly exchanges the information with the Risk

Management Unit to ensure alignment on key strategic, financial,

compliance and operational risks.

The IAS collaborates with the Compliance Service on tasks

involvingregulatory requirements, ethical standards and corporate

governance matters. Also, the IAS periodically shares and discusses

IAS observations and recommendations with the external auditor.

Compliance with the Global Internal Audit Standards

In November 2022, the IAS successfully passed an external

independent assessment with a final result: ‘Fully conforms

withthe Code of Ethics and the Definition of Internal Audit of

theInstitute of Internal Auditors, as well as the requirements

ofthe Standards by 100%’.

At the end of 2024, the IAS transitioned to the new requirements

of the Global Internal Audit Standards, which became effective in

January 2025. The implementation of the new Global Internal Audit

Standards enhanced the governance and consistency of the Internal

Audit Function. Internal audit regulating documents and working

templates were updated, separate Internal Audit Strategy and

Strategic Plan documents were developed in line with the Standards,

and ongoing efforts continued to strengthen the quality and

consistency of internal audit engagements.

The IAS also initiated steps towards adopting the Institute of

Internal Auditors’ new Topical Requirements, which will be

implemented during 2026 as part of the update to the International

Professional Practices Framework.

External audit

The Air Astana Group’s external auditor, Ernst & Young LLP (EY), was

appointed by resolution of the General Meeting of Shareholders on

29 May 2025, following a competitive tender process conducted in

accordance with the Group’s internal policies for the appointment

of the external auditor. The tender process was overseen by a

Unified Commission for the selection of the auditor, chaired by

theChair of the Audit Committee and comprising members of

theAudit Committee and the Chief Financial Officer. Clear and

pre-defined evaluation criteria were approved in advance to

ensure a fair, transparent and objective assessment of the

auditorganisations participating in the tender.

Following a detailed evaluation of proposals received, meetings

with the participating audit organisations, and final consideration

and ranking of submissions, the Audit Committee recommended

the appointment of EY for a three-year term covering the financial

years ending 31 December 2025 to 31 December 2027. This is the

first time EY has been appointed as the Group’s external auditor.

The lead audit partner, Paul Cohn, has 26 years of assurance

experience and has been based in Kazakhstan since 2005,

providing relevant regional and professional expertise. The Group’s

financial statements for the year ended 31 December 2024 were

audited by KPMG.

Throughout the year, the Audit Committee met with the external

auditor regularly, including private sessions without management

present. The Audit Committee worked closely with EY during 2025

to review and approve the external audit plan, scope and approach,

monitor key risks and assess the effectiveness of the audit process.

The Audit Committee also oversees the audit quality, effectiveness,

independence and objectivity of the external auditor.

In 2025, the Group updated its Policy on the Engagement of Audit

Organisations, which establishes a unified approach across the Air

Astana Group to the engagement of audit organisations for both

audit and non-audit services. The Audit Committee reviews and

approves all proposed non-audit services to ensure they do not

impair independence according to the Group’s Policy on

Engagement of Audit Organisations, which also includes provisions

governing the hiring of former audit organisation employees. This

policy is available on the Group’s website at www.airastana.com.

Fees for non-audit services paid to the external auditor in 2025

amounted to KZT 18,587 thousand.

During 2025, EY provided the Audit Committee with formal

confirmations of its compliance with all relevant ethical standards

and professional independence requirements. These confirmations

included assurances that any identified threats to independence

had been eliminated or reduced to an acceptable level through

theapplication of appropriate safeguards.

Priorities for 2026

The Audit Committee will continue to focus on maintaining the

integrity and quality of financial statements and ensuring that the

Group prepares its financial and business reports based on the

principles of transparency and accountability, completeness and

reliability. In addition, the Committee will keep a sustained focus

on global sanctions developments and uphold a robust sanctions

framework, as mandated by the Board Sanctions Policy, which

requires compliance with UK, US, EU and UN regimes. Further

strengthening and testing of the effectiveness of the internal

control, risk management, compliance and internal audit systems

will remain a key priority, together with supporting continuous

improvement of governance practices across the Group. In

addition, in the coming year, the Audit Committee intends to place

particular emphasis on IT matters, with a focus on cybersecurity

and information security, and has requested the Internal Audit

Service to coordinate an external cybersecurity review in 2026.

Overview Other informationStrategic report Financial statements

107AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS CONTINUED

Composition and attendance

Name Position

Meetings

attended

Yeldar Abdrazakov Committee Chair, Independent

Non-Executive Director 7/7

Janet Heckman Independent Non-ExecutiveDirector 7/7

Simon Wood

Non-Executive Director 7/7

Aidar Ryskulov Non-Executive Director 7/7

Diyas Assanov Independent Non-ExecutiveDirector 7/7

Roles and responsibilities

The ESG Committee develops recommendations to the Board

onbuilding an effective ESG system across the Group. The ESG

Committee is responsible for:

– Overseeing the ESG-related goals, metrics and initiatives

– Monitoring the progress towards achieving its ESG objectives

– Review of and recommendations for approving ESG-related

policies

– Review and approval of ESG-related disclosures in the

Company’s Integrated Annual Report

1 Simon Wood resigned with effect from 9 February 2026.

ESG Committee report

Main activities during 2025

In 2025, the ESG Committee held seven meetings, including three

meetings in person.

Building on the work undertaken during the previous year, in 2025,

the Committee received updates on the Group’s Low-Carbon

Development Programme (LCDP) and the setting of public targets,

which includes a commitment to achieve net-zero carbon emissions

by 2050, in line with and in support of Kazakhstan’s aim to achieve

carbon neutrality by 2060 and an operational target of 5%

consumption of sustainable aviation fuel (SAF) by 2030.

TheCommittee also considered the results of the LCDP’s

independent verification, noting confirmation that the Company’s

decarbonisation targets are aligned with the Transition Pathway

Initiative’s rigorous methodology, which benchmarks emissions

pathways across sectors, and with the mitigation objectives of the

Paris Agreement. In line with commitments detailed in last year’s

Integrated Annual Report, the Committee supported management

in the work required in calculating the Scope 3 emissions and

preparing disclosures in accordance with IFRS SDS, with a focus on

climate-related disclosures under IFRS S2.

In 2025, the Committee monitored the evolution of the ICAO

Carbon Offsetting and Reduction Scheme for International Aviation

(CORSIA), a global market-based initiative developed by the

International Civil Aviation Organization and considered the

potential financial obligations for the Company arising from its

implementation. The Committee also reviewed the results of the

limited assurance of non-financial indicators presented in the

Sustainability section of the Company’s Integrated Annual Report

2024, supporting efforts to enhance data reliability and stakeholder

confidence. In addition, the Committee keeps abreast of regulatory

changes, and considers responses to consultations on matters

relating to its remit throughout the year.

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108AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

BOARD COMMITTEE REPORTS | ESG Committee

During 2025, the Committee also reviewed management updates

on waste management initiatives and related operational

activities, assessing progress in strengthening waste reduction,

segregation and responsible disposal practices across the Company.

The Committee further considered management’s implementation

of the IATA Integrated Sustainable Procurement standards, focused

on embedding sustainability principles into procurement processes

and supplier engagement, and strengthening governance over

responsible sourcing.

For more information on our approach to sustainability, the

initiatives outlined in this report and our overall ESG Strategy,

please see pages 39 to 40 of this Integrated Annual Report.

In addition, the Committee considered the findings of the periodic

ESG Review, which included an analysis of relevant industry trends

and an internal assessment of the Group’s ESG performance. The

Committee also reviewed the Group’s ESG-related materials

published on external and internal communication platforms,

aimed at building awareness of the Group’s ESG initiatives and

projects. For more information on our other ESG initiatives, please

refer to the Communities section of this Integrated Annual Report

on pages 68 to 70.

The Committee also considered the HR Update, which provided

anoverview of key workforce metrics and dynamics, as well as

developments in talent management, training and employee

engagement, including initiatives aimed at strengthening a

cultureof recognition across the Company.

Priorities for 2026

In 2026, the ESG Committee will continue to support the building

of the Group’s waste management programme, and the development

of data collections systems to support statistical reporting and

measurement capabilities. There will remain a focus on involving

employees and customers in the initiatives to reduce and recycle

waste to raise and maintain awareness.

Key priorities for 2026 will also include review and approval of the

Company’s first report prepared in accordance with IFRS SDS, with a

focus on climate-related disclosures under IFRS S2, including updated

assessment of climate-related risks and opportunities, consideration

of the results of the Scope 3 emissions calculation, finalisation of

the implementation of the IATA Integrated Sustainable Procurement

standards and oversight of successful completion of the related

assessment, oversight of management’s preparation for the

implementation of IATA IEnvA (Environmental Assessment) and

successful completion of its assessment, review and approval of

necessary internal ESG policies.

As in previous years, social responsibility will remain central in

2026, with attention to employee engagement, health and safety,

well-being, diversity and ESG-focused training, both for the ESG

Committee and employees. Stakeholder engagement and

cross-industry collaboration will be encouraged, to reinforce

theGroup’s role as a responsible connector of people, cultures

andeconomies.

Overview Other informationStrategic report Financial statements

109AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

RESPONSIBILITY STATEMENT

The Board of Directors is responsible for preparing the annual

report and financial statements in accordance with applicable laws

and regulations, and consider the Integrated Annual Report and

Financial Statements, taken as a whole, to be fair, balanced and

understandable, and to provide the information necessary for

shareholders to assess the Group’s position, performance, business

model and strategy.

Each member of the Board of Directors confirms that to the best of

their knowledge:

– The financial statements, prepared in accordance with IFRS, give

a true and fair view of the assets, liabilities, financial position

and profit or loss of the Company, including the consolidated

statements of the Company and its subsidiary (Group as a

whole)

– The Strategic report, included in the Integrated Annual Report,

includes a fair review of the development and performance of

the business and the financial position of the Company and its

subsidiary (Group as a whole), together with a description of the

principal risks and uncertainties they face

Nurlan Zhakupov

CHAIRMAN OF THE BOARD OF DIRECTORS

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110AIR ASTANA GROUP INTEGRATED REPORT 2025

Governance

Financial statements

112 Statement of management’s responsibilities for the preparation

andapproval of the consolidated financial statements

113 Independent auditor’s report

116 Consolidated Statement of profit or loss

117 Consolidated Statement of other comprehensive income

118 Consolidated Statement of financial position

119 Consolidated Statement of changes in equity

120 Consolidated Statement of cash flows

121 Notes to the consolidated financial statements

As we continue to expand our fleet

andglobal reach, scalability will be

important, in terms of getting both

systems and competencies right,

andalways putting safety first.”

Filippos Siakkas

CHIEF OPERATING OFFICER

Overview Other informationStrategic report Governance

111AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

STATEMENT OF MANAGEMENT’S RESPONSIBILITIES

FOR THE PREPARATION AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

The management is responsible for the preparation of the consolidated financial statements that

present fairly the consolidated financial position of Joint Stock Company Air Astana and its subsidiary

(the “Group”) as at 31 December 2025, and the results of its consolidated operations, cash flows and

changes in equity for the year then ended in compliance with IFRS Accounting Standards as issued

bythe International Accounting Standards Board (“IFRS Accounting Standards”).

In preparing the consolidated financial statements, the management is responsible for:

– properly selecting and applying accounting policies;

– presenting information, including accounting policies, in a manner that provides relevant,

reliable, comparable and understandable information;

– providing additional disclosures when compliance with the specific requirements in IFRS

Accounting Standards are insufficient to enable users to understand the impact of particular

transactions, other events and conditions on the Group’s financial position and financial

performance; and

– making an assessment of the Group’s ability to continue as a going concern.

The management is also responsible for:

– designing, implementing and maintaining an effective and sound system of internal controls

throughout the Group;

– maintaining adequate accounting records that are sufficient to show and explain the Group’s transactions

and disclose with reasonable accuracy at any time the consolidated financial position of the Group,

and which enable them to ensure that the consolidated financial statements of the Group comply

with IFRS Accounting standards;

– maintaining statutory accounting records in compliance with the legislation of Kazakhstan and

IFRSAccounting Standards;

– taking such steps as are reasonably available to them to safeguard the assets of the Group; and

– preventing and detecting fraud and other irregularities.

The consolidated financial statements for the year ended 31 December 2025 were authorised for issue

on 13 March 2026 by the management of the Group.

On behalf of the management of the Group:

Peter Foster

CHIEF EXECUTIVE OFFICER

Almaty, Republic of Kazakhstan

Ibrahim Canliel

CHIEF FINANCIAL OFFICER

Almaty, Republic of Kazakhstan

Saule Khassenova

CHIEF ACCOUNTANT

Almaty, Republic of Kazakhstan

13 March 2026

Overview Other informationStrategic report Governance

112AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS, BOARD OF DIRECTORS AND MANAGEMENT OF AIR ASTANA JSC

Opinion

We have audited the consolidated financial statements of Air Astana JSC and its subsidiaries (hereinafter,

the ‘Group’), which comprise the consolidated statement of financial position as at 31 December 2025,

and the consolidated statement of profit and loss, consolidated statement of other comprehensive

income, consolidated statement of changes in equity and consolidated statement of cash flows for

theyear then ended, and notes to the consolidated financial statements, including material accounting

policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material

respects, the consolidated financial position of the Group as at 31 December 2025 and its consolidated

financial performance and its consolidated cash flows for the year then ended in accordance with IFRS

Accounting Standards.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities

under those standards are further described in the Auditor’s responsibilities for the audit of the

consolidated financial statements section of our report. We are independent of the Group in accordance

with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional

Accountants (including International Independence Standards) (IESBA Code), as applicable to audits of

financial statements of public interest entities, together with the ethical requirements that are relevant

to our audit of the consolidated financial statements of public interest entities in the Republic of

Kazakhstan. We have also fulfilled our other ethical responsibilities in accordance with these requirements

and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate

to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the consolidated financial statements of the current period. These matters were addressed

in the context of our audit of the consolidated financial statements as a whole, and in forming our

opinion thereon, and we do not provide a separate opinion on these matters. For each matter below,

our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of

theconsolidated financial statements section of our report, including in relation to these matters.

Accordingly, our audit included the performance of procedures designed to respond to our assessment

of the risks of material misstatement of the consolidated financial statements. The results of our

auditprocedures, including the procedures performed to address the matters below, provide the

basisfor our audit opinion on the accompanying consolidated financial statements.

Key audit matter How our audit addressed the key audit matter

Passenger revenue

The Group’s passenger revenue information

is generated in a significant number of

low-value transactions, sourced from

multiple systems, including the reservation

systems. The processing and recording of

revenue is highly automated and is based

onestablished tariff plans.

We identified this matter as a key audit matter

due to the complexity of information systems

involved in the revenue recognition process

and the risks associated with incorrect

recognition and measurement of revenue.

Theauditing of revenue required an increased

extent of audit effort, including the involvement

of professionals with expertise in information

technology (‘IT’) to identify relevant systems,

and evaluate and test automated controls.

The disclosure of information in respect of

theaccounting policies on revenue recognition

is included in Note 3 to the consolidated

financial statements, and disclosures by

typesof revenue are included in Note 7

totheconsolidated financial statements.

We assessed the design and tested the operating

effectiveness of IT general controls supporting the operation

of the reservation systems and other IT systems.

We tested IT application controls over the capturing and

recording of data, and IT application controls over the

calculation of amounts to be billed to customers in the

reservation systems.

We reconciled information in the reservation systems used

for the recording and recognition of passenger revenue with

revenue recorded in other IT systems.

We analysed correlation among revenue, deferred revenue,

trade receivables and cash recorded in the accounting system.

We analysed annual and monthly trends in revenue by

route/direction and compared these trends with changes

inpassenger volumes.

We analysed the key judgements used by management

inthe accounting for revenue.

We evaluated the Group’s accounting policy for revenue

recognition.

We analysed the disclosures in the consolidated financial

statements related to revenue recognition.

Overview Other informationStrategic report Governance

113AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

INDEPENDENT AUDITOR’S REPORT CONTINUED

Key audit matter How our audit addressed the key audit matter

Provision for aircraft maintenance

We considered this matter to be one of the

matters of most significance in our audit due

to materiality of the provision for aircraft

maintenance to the consolidated financial

statements, the high level of subjectivity in

respect of assumptions underlying calculation

of provision for aircraft maintenance and

significant judgement and estimates made

by management.

Significant assumptions included expected

cost and timing of maintenance activities.

Management has engaged an external expert

to assist in estimating the timing and cost of

expected engine maintenance activities.

The Group’s disclosure of information in

respect of the accounting policies on provision

for aircraft maintenance is included in Note 3

to the consolidated financial statements, and

disclosures by types of provision for aircraft

maintenance are included in Note 22 to the

consolidated financial statements.

We obtained an understanding of management’s process for

estimating the provision for aircraft maintenance, including

relevant controls over data collection, estimation, and review

of assumptions used.

We assessed the competence, capabilities, and objectivity

ofthe expert engaged by management, and obtained an

understanding of their work, including the scope, methods

and key assumptions.

We inspected results of the calculations provided by

management’s expert and evaluated the relevance and

reasonableness of the expert’s findings and conclusions

toensure they are appropriate and reliable.

We analysed the key assumptions adopted by management

in estimating the provision.

– We compared the expected cost of maintenance

activitieswith historical actual costs incurred and

existingmaintenance agreements.

– We compared the method of calculation of provisions in

the current year with the method used in the prior year.

We analysed the disclosures in the consolidated financial

statements related to the provision for aircraft maintenance.

Other matters

The consolidated financial statements of the Group for the year ended 31 December 2024 were audited

by another auditor who expressed an unmodified opinion on those statements on 13 March 2025.

Other information included in the Group’s 2025 Annual Report

Other information consists of the information included in the Group’s 2025 Annual Report, other than

the consolidated financial statements and our auditor’s report thereon. Management is responsible for

the other information. The Group’s 2025 Annual Report is expected to be made available to us after the

date of this auditor’s report.

Our opinion on the consolidated financial statements does not cover the other information and we will

not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the

other information identified above when it becomes available and, in doing so, consider whether the

other information is materially inconsistent with the consolidated financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated.

Responsibilities of management and the Audit Committee for the consolidated

financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial

statements in accordance with IFRS Accounting Standards, and for such internal control as management

determines is necessary to enable the preparation of consolidated financial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the

Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless management either intends to

liquidatethe Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group’s financial reporting process.

Overview Other informationStrategic report Governance

114AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in

theaggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

– Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks,

andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Therisk ofnot detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

– Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of Group’s internal control.

– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

– Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.

Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease

to continue as a going concern.

– Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

– Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business units within the Group as a basis for forming an

opinion on the consolidated financial statements. We are responsible for the direction, supervision

and review of the audit work performed for the purposes of the group audit. We remain solely

responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, actions

taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were

ofmost significance in the audit of the consolidated financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

that a matter should not be communicated in our report because the adverse consequences of doing

sowould reasonably be expected to outweigh the public interest benefits of such communication.

The partner in charge of the audit resulting in this independent auditor’s report is Paul Cohn.

Paul Cohn

AUDIT PARTNER

Dinara Malayeva

AUDITOR

Auditor Qualification Certificate

No. МФ-0000323 dated 25 February 2016

A15E3H4, Republic of Kazakhstan, Almaty

Al-Farabi ave., 77/7, Esentai Tower

13 March 2026

Rustamzhan Sattarov

GENERAL DIRECTOR

ERNST & YOUNG LLP

State Audit License for audit activities on the

territory of the Republic of Kazakhstan: series

МФЮ–2, № 0000003, issued by the Ministry

ofFinance of the Republic of Kazakhstan on

15July 2005

INDEPENDENT AUDITOR’S REPORT CONTINUED

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in

theaggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

– Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks,

andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Therisk ofnot detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

– Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of Group’s internal control.

– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

– Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.

Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease

to continue as a going concern.

– Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

– Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business units within the Group as a basis for forming an

opinion on the consolidated financial statements. We are responsible for the direction, supervision

and review of the audit work performed for the purposes of the group audit. We remain solely

responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, actions

taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were

ofmost significance in the audit of the consolidated financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

that a matter should not be communicated in our report because the adverse consequences of doing

sowould reasonably be expected to outweigh the public interest benefits of such communication.

The partner in charge of the audit resulting in this independent auditor’s report is Paul Cohn.

Paul Cohn

AUDIT PARTNER

Dinara Malayeva

AUDITOR

Auditor Qualification Certificate

No. МФ-0000323 dated 25 February 2016

Rustamzhan Sattarov

GENERAL DIRECTOR

ERNST & YOUNG LLP

State Audit License for audit activities on the

territory of the Republic of Kazakhstan: series

МФЮ–2, № 0000003, issued by the Ministry

ofFinance of the Republic of Kazakhstan on

15July 2005

A15E3H4, Republic of Kazakhstan, Almaty

Al-Farabi ave., 77/7, Esentai Tower

13 March 2026

INDEPENDENT AUDITOR’S REPORT CONTINUED

Overview Other informationStrategic report Governance

115AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in

theaggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

– Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks,

andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Therisk ofnot detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

– Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of Group’s internal control.

– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

– Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.

Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease

to continue as a going concern.

– Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

– Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business units within the Group as a basis for forming an

opinion on the consolidated financial statements. We are responsible for the direction, supervision

and review of the audit work performed for the purposes of the group audit. We remain solely

responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, actions

taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were

ofmost significance in the audit of the consolidated financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

that a matter should not be communicated in our report because the adverse consequences of doing

sowould reasonably be expected to outweigh the public interest benefits of such communication.

The partner in charge of the audit resulting in this independent auditor’s report is Paul Cohn.

Paul Cohn

AUDIT PARTNER

Dinara Malayeva

AUDITOR

Auditor Qualification Certificate

No. МФ-0000323 dated 25 February 2016

Rustamzhan Sattarov

GENERAL DIRECTOR

ERNST & YOUNG LLP

State Audit License for audit activities on the

territory of the Republic of Kazakhstan: series

МФЮ–2, № 0000003, issued by the Ministry

ofFinance of the Republic of Kazakhstan on

15July 2005

A15E3H4, Republic of Kazakhstan, Almaty

Al-Farabi ave., 77/7, Esentai Tower

13 March 2026

INDEPENDENT AUDITOR’S REPORT CONTINUED

Overview Other informationStrategic report Governance

115AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in

theaggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

– Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks,

andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Therisk ofnot detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

– Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of Group’s internal control.

– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

– Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.

Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Group to cease

to continue as a going concern.

– Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

– Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business units within the Group as a basis for forming an

opinion on the consolidated financial statements. We are responsible for the direction, supervision

and review of the audit work performed for the purposes of the group audit. We remain solely

responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, actions

taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were

ofmost significance in the audit of the consolidated financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludes public disclosure about the matter or when, in extremely rare circumstances, we determine

that a matter should not be communicated in our report because the adverse consequences of doing

sowould reasonably be expected to outweigh the public interest benefits of such communication.

The partner in charge of the audit resulting in this independent auditor’s report is Paul Cohn.

Paul Cohn

AUDIT PARTNER

Dinara Malayeva

AUDITOR

Auditor Qualification Certificate

No. МФ-0000323 dated 25 February 2016

Rustamzhan Sattarov

GENERAL DIRECTOR

ERNST & YOUNG LLP

State Audit License for audit activities on the

territory of the Republic of Kazakhstan: series

МФЮ–2, № 0000003, issued by the Ministry

ofFinance of the Republic of Kazakhstan on

15July 2005

A15E3H4, Republic of Kazakhstan, Almaty

Al-Farabi ave., 77/7, Esentai Tower

13 March 2026

INDEPENDENT AUDITOR’S REPORT CONTINUED

Overview Other informationStrategic report Governance

115AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

Overview Other informationStrategic report Governance

115AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2025

’000	USD	Notes	2025	2024
Revenue and other income
Passenger revenue		7	1,380 ,306	1, 24 6 , 0 4 4
Gain from sale and leaseback transactions		7	3 7, 76 4	25,016
Cargo and mail revenue		7	2 7, 3 7 1	26,3 03
Other income		7	8,449	11, 7 8 5
Total			1, 45 3, 8 9 0	1 , 3 0 9,14 8
Operating expenses
Fuel and oil costs			(3 3 1, 4 6 6)	(3 0 5 ,1 8 3)
Employee and crew costs		8	(26 0, 8 96)	(2 26,659)
Depreciation and amortisation		12	(2 2 9, 74 0)	(1 8 9,17 1)
Engineering and maintenance		8	(1 45,036)	(1 1 7, 8 7 4)
Handling, landing fees and route charges		8	(141, 0 0 3)	(120, 4 8 5)
Passenger service		8	(14 0, 5 8 5)	(1 18,677)
Selling costs		8	(51, 024)	(4 4 ,1 8 0)
Insurance			(13, 5 49)	(1 2 , 8 0 1)
Information technology			(8 , 0 61)	(6 , 8 3 1)
Consultancy, legal and professional services			(5,935)	(8,412)
Taxes, other than income tax			(5, 618)	(4,36 1)
Property and office costs			(4, 8 45)	(4,675)
Aircraft variable lease costs			(2 , 218)	(5 , 2 16)
Other			(2 5,7 8 9)	(14 , 61 7)
Total operating expenses			(1 ,365,7 65)	(1 ,1 7 9,1 4 2)

’000	USD	Notes	2025	2024
Operating profit			8 8 ,1 2 5	13 0, 0 0 6
Finance income		9	22, 3 07	2 2, 079
Finance costs		9	(82 , 4 0 6)	(6 4 , 6 5 6)
Foreign exchange loss, net			(7 ,906)	(2 0 , 74 3)
Profit before tax			20, 120	66 ,686
Income tax expense		10	(6 , 5 6 8)	(13, 9 10)
Profit for the year			13, 5 5 2	5 2 , 7 76
Basic and diluted earnings per share (in USD)		19	0.038	0 .1 5 1

On behalf of the Group’s management:

Peter Foster

CHIEF EXECUTIVE OFFICER

Almaty, Republic of Kazakhstan

Ibrahim Canliel

CHIEF FINANCIAL OFFICER

Almaty, Republic of Kazakhstan

Saule Khassenova

CHIEF ACCOUNTANT

Almaty, Republic of Kazakhstan

13 March 2026

The consolidated statement of profit or loss is to be read in conjunction with the notes to, and forming

part of, the consolidated financial statements set out on pages 121 to 161.

Overview Other informationStrategic report Governance

116AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

’000	USD	Notes	2025	2024
Profit for the year			13, 5 5 2	5 2 , 7 76
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax):
Cash flow hedges – effective portion of changes in fair value			17 3	433
Corporate income tax related to cash flow hedges – effective portion of changes in fair value			(35)	(87)
Realised net loss from cash flow hedging instruments		24	6,8 9 9	12, 7 14
Corporate income tax related to loss from hedging instruments		24	(1, 3 8 0)	(2 , 5 4 3)
Net other comprehensive loss that may be reclassified toprofit or loss in subsequent periods			5,657	10 , 5 17
Other comprehensive income for the year, net of tax			5,657	10 , 5 17
Total comprehensive income for the year			19, 2 0 9	63, 293

The consolidated statement of other comprehensive income is to be read in conjunction with the notes

to, and forming part of, the consolidated financial statements set out on pages 121 to 161.

Overview Other informationStrategic report Governance

117AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2025

			31 December	31 December
’000	USD	Notes	2025	2024
ASSETS
Non-current assets
Property, plant and equipment		11	1, 19 5, 7 7 5	1,0 6 3, 2 8 4
Intangible assets			6, 502	6,018
Prepayments		15	20, 326	1 9, 5 9 1
Guarantee deposits		13	4 4,9 50	38 , 695
Trade and other receivables		16	1, 6 61	630
Deferred tax assets		10	80,92 5	4 8,6 03
			1, 3 5 0 ,13 9	1 ,1 7 6 , 8 2 1
Current assets
Inventories		14	8 6 , 4 17	6 6 ,1 2 9
Prepayments		15	3 1, 414	30,2 9 0
Income tax prepaid			7,1 0 5	1 2, 999
Trade and other receivables		16	25,9 97	20, 8 01
Other taxes prepaid		17	31, 9 0 0	13 ,7 9 2
Guarantee deposits		13	5 0, 49 0	3,2 3 9
Other financial assets			243	302
Cash and cash equivalents		18	4 7 2 , 8 76	488, 70 2
			7 06,442	636,254
Total assets			2,05 6, 581	1,813,075

			31 December	31 December
’000	USD	Notes	2025	2024
EQUITY AND LIABILITIES
Equity
Share capital			13 8 ,11 2	13 8 ,11 2
Functional currency transition reserve			(9, 3 24)	(9, 3 2 4)
Other reserves			(1, 2 8 5)	3,0 0 9
Treasury share			(5, 4 6 0)	(8 , 24 0)
Reserve on hedging instruments, net of tax			(118)	(5,7 75)
Retained earnings			2 47 ,389	2 7 6 , 74 8
Total equity			3 6 9, 3 1 4	394, 530
Non-current liabilities
Loans		24	4,9 65	5 21
Lease liabilities		24	84 6,2 56	716 , 7 7 5
Provision for aircraft maintenance		22	2 6 4 , 313	2 8 9, 8 6 6
Employee benefits			1, 2 2 6	8 18
			1 ,1 1 6 , 7 6 0	1, 0 0 7, 9 8 0
Current liabilities
Trade and other payables		23	1 2 3 , 4 11	116 , 8 2 2
Loans		24	627	56
Lease liabilities		24	19 8 ,111	17 1, 8 8 6
Deferred revenue		21	9 9, 0 7 9	8 9, 8 0 1
Provision for aircraft maintenance		22	13 6 , 817	25, 269
Income tax payable			12,462	6,7 31
			570, 5 07	410, 5 65
Total liabilities			1,687 ,267	1, 418 , 5 4 5
Total equity and liabilities			2,05 6, 581	1,813,075
Book value per ordinary share (in USD) 1			1.02 5	1. 104

1 Disclosure of the book value per common share is not covered by IFRS and is disclosed upon request and in accordance

with the rules of KASE.

The number of ordinary shares used in calculation as of 31 December 2025 and 31 December 2024

was353,948,253 and 351,887,760 respectively.

The consolidated statement of financial position is to be read in conjunction with the notes to,

andforming part of, the consolidated financial statements set out on pages 121 to 161.

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118AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

					Functional
					currency	Reserve on
					translation	hedging	Retained
’000	USD	Share capital	Treasury shares	Other reserves	reserve	instruments	earnings	Total equity
At 1 January 2024		1 7 ,000	–	–	(9, 3 2 4)	(16 , 2 92)	2 2 1,9 75	213,359
Profit for the year		–	–	–	–	–	52 ,7 76	5 2 ,7 76
Other comprehensive income: Realised loss on cash flow hedging instruments and effective portion of changes
infair value of fuel call options, net of tax		–	–	–	–	10, 517	–	10 , 517
Total comprehensive income for the year		–	–	–	–	1 0 , 5 17	5 2 , 7 76	63, 293
Issue of shares (Note 19)		121, 112	–	–	–	–	–	121, 112
Issue costs, gross (Note 19)		–	–	(3 ,1 0 0)	–	–	–	(3 ,1 0 0)
Treasury shares (Note 19)		–	(8 , 24 0)	–	–	–	–	(8 , 24 0)
Equity-settled share-based program (Note 20)		–	–	6 ,1 0 9	–	–	–	6 ,1 0 9
Other changes		–	–	–	–	–	1,9 9 7	1, 9 9 7
At 31 December 2024		1 3 8 ,1 1 2	(8, 2 4 0)	3,00 9	(9, 3 2 4)	(5,7 75)	2 7 6 , 74 8	394, 530
At 1 January 2025		1 3 8 ,1 1 2	(8, 2 4 0)	3,00 9	(9, 3 2 4)	(5,7 75)	2 7 6 , 74 8	394, 530
Profit for the year		–	–	–	–	–	13, 5 5 2	13, 5 5 2
Other comprehensive income: Realised loss on cash flow hedging instruments and effective portion of changes
infair value of fuel call options, net of tax		–	–	–	–	5, 65 7	–	5,6 57
Total comprehensive income for the year		–	–	–	–	5,65 7	13 , 5 52	1 9, 2 0 9
Dividends declared (Note 19)		–	–	–	–	–	(3 7,1 5 0)	(3 7,15 0)
Transfer of rights to equity instruments for share-based payments (Note 20)		–	5, 35 0	(5,365)	–	–	–	(15)
Treasury shares (Note 19)		–	(2 , 57 0)	–	–	–	–	(2 , 5 7 0)
Equity settled share-based program (Note 20)		–	–	1, 3 9 9	–	–	–	1, 39 9
Cancelled rights of share-based payments		–	–	(328)	–	–	–	(328)
Other changes		–	–	–	–	–	(5 , 76 1)	(5 , 761)
At 31 December 2025		1 3 8 ,11 2	(5 , 4 6 0)	(1, 2 8 5)	(9, 3 2 4)	(11 8)	2 4 7, 3 8 9	3 6 9, 3 1 4

The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 121 to 161.

Overview Other informationStrategic report Governance

119AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

’000	USD	Notes	2025	2024
OPERATING ACTIVITIES:
Profit before tax			20, 120	66 ,686
Adjustments for:
Depreciation and amortisation of property, plant and equipment and intangible assets		12	2 2 9 , 74 0	1 8 9 ,1 7 1
Gain on disposal of property, plant and equipment and other assets and from sales and leaseback transaction			(3 8 ,74 8)	(2 5, 7 3 3)
Change in impairment allowance for trade receivables, prepayments, guarantee deposits and cash and cash
equivalents		13,15, 16,18	19 1	(1 ,1 5 0)
Write-down of obsolete and slow-moving inventories		14	1, 87 1	353
Change in vacation accrual		23	1, 416	1 ,1 7 6
Accrual of provision for aircraft maintenance		22	1 0 7, 4 0 9	9 5, 29 9
Change in customer loyalty program		21	(76 7)	4,0 6 8
Foreign exchange loss, net			7 ,906	2 0 , 74 3
Finance income			(2 2,281)	(21, 782)
Finance costs			82,2 38	6 4, 592
Gain from early return of aircraft			–	(2,875)
Other change in equity			(5 , 76 1)	–
Equity-settled share-based payment		20	933	6 ,1 0 9
Operating cash flow before movements in working capital			38 4, 267	396,6 57
Change in trade and other receivables			(2 9, 9 0 3)	(1,7 9 4)
Change in prepaid expenses and prepayments			(2 0 ,1 8 8)	(1 0 , 2 0 1)
Change in inventories			(2 2 ,15 9)	1,6 3 8
Change in trade and other payables and provision for aircraft
maintenance			(6 8,40 9)	(17, 8 3 8)
Change in deferred revenue			10,045	3, 4 15
Change in other financial instruments			225	893
Cash generated from operations			253,878	37 2 ,7 70
Income tax paid			(3 1,7 3 6)	(26,667)
Interest received			2 2, 275	2 1 , 74 3
Net cash generated from operating activities			244,41 7	3 6 7, 8 4 6

’000	USD	Notes	2025	2024
INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(53,930)	( 9 7, 9 4 8)
Proceed from sale and leaseback transaction		7	13 9, 74 1	90, 5 0 0
Proceeds from disposal of property, plant and equipment			3,5 8 0	2,7 3 4
Purchase of intangible assets			(1, 43 6)	(3,6 8 7)
Guarantee deposits placed			(5 7, 0 4 6)	(12 ,7 2 3)
Guarantee deposits withdrawn			2,804	3,0 4 4
Net cash generated from / (used) in investing activities			33,713	(18, 080)
FINANCING ACTIVITIES:
Repayment of lease liabilities		24	(19 0, 76 2)	(19 0 , 3 3 1)
Interest paid		24	(66,66 1)	(5 4 , 4 3 1)
Repayment of borrowings and additional financing from sale
and leaseback		24	(5 2 8)	(38,4 42)
Proceeds from borrowings		7, 24	5, 533	3 8 ,19 3
Repurchase of treasury shares		19	(2 , 5 70)	(8, 24 0)
Treasury shares settled			(15)	–
Proceeds from share issuance		19	–	121, 11 2
Dividends paid		19	(3 7,1 5 0)	–
Net cash used in financing activities			(2 9 2 ,15 3)	(132 , 13 9)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS			(14 , 0 2 3)	2 17, 6 2 7
Other comprehensive loss that may be reclassified to profit or loss in subsequent periods (net of tax):			(1 , 8 0 1)	(2 , 8 76)
Effects of movements in ECL on cash and cash equivalents			(2)	(2)
Foreign currency translation			–	(53)
CASH AND CASH EQUIVALENTS, at the beginning of the year		18	4 8 8 ,702	2 74 , 0 0 6
CASH AND CASH EQUIVALENTS, at the end of the year		18	47 2 , 8 76	4 8 8 ,702

The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming

part of, the consolidated financial statements set out on pages 121 to 161.

Overview Other informationStrategic report Governance

120AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

1. Nature of activities

Joint Stock Company Air Astana is a joint stock company (the “Company”) as defined in the Civil Code

of the Republic of Kazakhstan.

The Company was established as a closed joint stock company on 14 September 2001 by Resolution

of the Government of the Republic of Kazakhstan #1118 dated 29 August 2001. Due to a change in

legislation introduced in 2003, the Parent Company was re-registered as a joint stock company on

27 May 2005.

The Company has a subsidiary JSC “FlyArystan” (formerly JSC “Aviation Company “Air Kazakhstan”)

(hereinafter – the “Subsidiary”) which was acquired in November 2019 by purchasing one hundred

percent of the shares and voting interests. Together the Company and the Subsidiary are referred

to as the “Group”.

In October 2024, the Subsidiary was assigned FS code by the International Air Transport Association

(IATA) and started tickets sales for passenger flights, scheduled after 31 December 2024. In December

2024, the Subsidiary operated its first charter flight. Before October 2024, the Subsidiary has not been

carrying out any operating activities of passenger and cargo transportation. Starting since January 2025,

the Subsidiary has commenced to carry out the activities of FlyArystan brand for provision of

passengers and cargo transportation by civil aviation aircraft services.

In June 2025, the Group established a subsidiary — LLP “Air Astana Terminal Services,” in which it holds

a 100% ownership interest. During the year ended 31 December 2025, the subsidiary did not conduct

any operating activities and, accordingly, did not have any significant assets, liabilities, or financial

results to be included in the consolidated financial statements

The Group’s principal activity is the provision of scheduled domestic and international air services

for passengers. Other business activities include freight and mail transportation.

As at 31 December 2025 and 31 December 2024, the Group operated 62 and 57 turbojet aircraft.

On 15 February 2024, the Company completed its initial public offering (“IPO”), raising KZT 54,256,673

thousand (USD 121,112 thousand). The Company listed simultaneously on three exchanges: Kazakhstan

Stock Exchange, Astana International Exchange, and London Stock Exchange. In addition to the primary

offering, existing shareholders JSC “National Welfare Fund “Samruk-Kazyna” (wholly owned by the

Government of the Republic of Kazakhstan), and BAE Systems Kazakhstan Limited both sold their

shares (or GDRs representing shares), reducing their shareholdings to 41% and 16.95%, respectively.

Other shareholders had less than 10% of shares post-IPO.

On December 18 2025, BAE Systems Kazakhstan Limited sold 9,000 thousand Global Depository

Receipts (GDRs), representing 10.1% of the Company’s issued share capital. As of 31 December 2025,

BAE Systems Kazakhstan Limited retained ownership of 6.85% of issued share capital. (They subsequently

exited their position entirely in March 2026.)

2. Basis of Accounting

Statement of compliance

These consolidated financial statements have been prepared in accordance with IFRS Accounting

Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”).

Functional and presentation currency

Even though the national currency of Kazakhstan is the Kazakhstani tenge (“tenge”), the Company’s

functional currency is determined as the US Dollar (“USD”). The USD reflects the economic substance of

the underlying events and circumstances of the Company and is the functional currency of the primary

economic environment in which the Company operates, as a significant portion of the Group’s revenues

(including international fares) and major operating costs such as aircraft leases, fuel purchases and

financing are predominantly denominated in or influenced by USD. The functional currency of the

Company’s subsidiary FlyArystan is determined as the US Dollar.

All currencies other than the currency selected for measuring items in the consolidated financial

information are treated as foreign currencies. Accordingly, transactions and balances not already

measured in USD have been remeasured in USD in accordance with the relevant accounting standard

requirements.

As requested by shareholders, the Group prepares two sets of financial statements with presentation

currency Kazakhstani tenge and USD as shareholders believe that both currencies are useful for the

users of the Group’s financial statements. This consolidated financial information for the year ended

31 December 2025 has been presented in USD. All financial information presented in USD has been

rounded to the nearest thousand.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Overview Other informationStrategic report Governance

121AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies

Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for certain

financial instruments that are measured at fair value, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for assets

on the date of acquisition. The Group discloses other comprehensive income separately from its

consolidated statement of profit or loss. The principal accounting policies set out below have been

applied consistently to all periods presented in these consolidated financial statements. The consolidated

financial statements are presented in US dollars and all values are rounded to the nearest thousand

(’000 USD), except when otherwise indicated.

The Group has prepared the financial statements on the basis that it will continue to operate as

a going concern.

Basis of consolidation

(i) Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date,

which is the date on which control is transferred to the Group.

(ii) Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to,

or has rights to, variable returns from its involvement with the entity and has the ability to affect

those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the

date that control commences until the date that control ceases. The accounting policies of subsidiaries

have been changed when necessary to align them with the policies adopted by the Group.

Revenue

Passenger revenue

The Group satisfies the performance obligations related to tickets sold and reports the sales as revenue

when the transportation service performance obligation has been satisfied. The value of tickets sold

and still valid but not used by the reporting date is reported as deferred (unearned) transportation

revenue. This item is reduced either when the Group satisfies the performance obligation by

completing the transportation service or when the passenger requests a refund. Based on historical

data of previous years, the Group recognizes passenger revenue in proportion to the pattern of rights

exercised by the customer in respect of a percentage of tickets sold that are expected not to be used

or refunded.

The Group conducts sales through agents that act as intermediaries distributing tickets among customers.

On average, accounts receivable are collected within a month from origination. The Group’s sales do

not contain significant finance components due to the short-term nature of airline tickets.

Passenger revenue includes revenue from code-share agreements with other airlines. Under these

agreements, the Group sells seats on these airlines’ flights and those other airlines sell seats on the

Group’s flights. Revenue from the sale of code-share seats on other airlines are recorded net in the

Group’s passenger revenue in profit or loss, since the Group acts as an agent in these agreements.

The revenue from other airlines’ sale of code-share seats on the Group’s flights is recorded in

passenger revenue in profit or loss.

Revenue related to airport charges, such as fees and taxes, are presented gross of the related costs.

This is due to the fact that the Group is exposed to changes in the actual costs, and these costs are

assessed by the Group based on the volume of its operations, such that the Group acts as a principal

in the transactions, not as an agent.

Cargo revenue

Cargo transport services are recognised as revenue at the time when the transportation service

is provided.

Customer loyalty program

Sales of tickets that result in award credits for customers, under the Group’s Nomad Club Loyalty

Programme, are accounted for as two separate performance obligations embedded into one contract,

the ticket. The transaction price is allocated between the transportation service and the award provided

based on their stand-alone selling prices. The transaction price of credit award is not recognised as

revenue at the time of the initial sale transaction but is deferred and recognised as revenue when

the award credits are redeemed and the Group’s performance obligations have been fulfilled.

Travel agents’ commissions

Travel agents’ commissions are recognised as an expense when the transportation service is provided.

Although such commissions represent incremental costs of obtaining a contract under IFRS 15.91,

the Group applies the practical expedient in IFRS 15.94 and expenses these costs as incurred,

as the expected amortisation period of the related asset does not exceed one year.

Overview Other informationStrategic report Governance

122AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Reservation costs

Reservation costs are recognised as an expense when incurred, as the amortisation period of the asset

that the Group otherwise would have recognised does not exceed one year. Accordingly, the Group

applies the practical expedient in IFRS 15.94, which permits expensing incremental costs of obtaining

a contract when the expected amortisation period is one year or less.

Leasing

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is,

or contains, a lease if the contract conveys the right to control the use of an identified asset for a period

of time in exchange for a consideration. To assess whether a contract conveys the right to control the

use of an identified asset, the Group uses the definition of a lease in IFRS 16.

(i) As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencement date.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease

liability adjusted for any lease payments made at or before the commencement date, plus any initial

direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to

restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the

commencement date to the end of the lease term, unless the lease transfers ownership of the

underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects

that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated

over the useful life of the underlying asset, which is determined on the same basis as those of

property and equipment. In addition, the right-of-use asset is periodically reduced by impairment

losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at

the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot

be readily determined, and the Group’s incremental borrowing rate. Generally, the Group uses its

incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external

financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset

leased.

Lease payments included in the measurement of the lease liability comprise the following:

– fixed payments, including in-substance fixed payments;

– variable lease payments that depend on an index or a rate, initially measured using the index or

rate as at the commencement date;

– amounts expected to be payable under a residual value guarantee; and

– the exercise price under a purchase option that the Group is reasonably certain to exercise, lease

payments in an optional renewal period if the Group is reasonably certain to exercise an extension

option, and penalties for early termination of a lease unless the Group is reasonably certain not to

terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is re-measured

when there is a change in future lease payments arising from a change in an index or rate, if there

is a change in the Group’s estimate of the amount expected to be payable under a residual value

guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension

or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying

amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-

use asset has been reduced to zero.

The Group presents right-of-use assets in ‘property, plant and equipment’ and lease liabilities

separately in the consolidated statement of financial position.

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value

assets and short-term leases. The Group recognises the lease payments associated with these leases

as an expense on a straight-line basis over the lease term.

Overview Other informationStrategic report Governance

123AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

(ii) Sale and leaseback transactions

If the Group transfers an asset to another entity and leases that asset back from this same entity,

the Group accounts for the transfer contract and the lease according to IFRS 16 Leases.

The Group applies the requirements for determining when a performance obligation is satisfied in IFRS

15 Revenue from contracts with customers to determine whether the transfer of an asset is accounted

for as a sale of that asset.

If the transfer of an asset by the Group satisfies the requirements of IFRS 15 to be accounted for as a

sale of the asset the Group measures the right-of-use asset arising from the leaseback at the proportion

of the previous carrying amount of the asset that relates to the right of use retained by the Group.

Accordingly, the Group recognises only the amount of any gain or loss that relates to the rights

transferred to the buyer-lessor. If the fair value of the consideration for the sale of an asset does

not equal the fair value of the asset, or if the payments for the lease are not at market rates,

the Group makes the following adjustments to measure the sale proceeds at fair value:

(a) any below-market terms shall be accounted for as a prepayment of lease payments; and

(b) any above-market terms shall be accounted for as additional financing provided by the buyer-

lessor to the seller-lessee.

Guarantee deposits

Guarantee deposits represent amounts paid to the lessors of aircraft, which are held as security

deposits by the lessors in accordance with the provisions of lease agreements without transfer of title.

These deposits are returned to the Group at the end of the lease period. Lease deposits relating to the

lease agreements without transfer of title are presented as assets in the consolidated statement of

financial position. At initial recognition the Group recognises a discount and a deferred asset (additional

lease payment) simultaneously. The discount is amortised over the lease term using the effective

interest method, and the deferred asset is amortised by equal amounts over the lease term.

Foreign currencies

In preparing the consolidated financial statements, transactions in currencies other than the functional

currency of the Group entities (foreign currencies) are recorded at the rates of exchange prevailing

at the dates of the transactions. At the end of each reporting period, monetary items denominated

in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that

are measured at historical cost in a foreign currency are not retranslated.

The following table summarises US Dollar exchange rates at 31 December 2025 and 31 December 2024

and for the years then ended:

		Average rate			Reporting date spot-rate
				31 December	31 December
USD		2025	2024	2025	2024
1,000	Tenge (KZT)	1.92	2.13	1.98	1.9
Euro (EUR)		1.13	1.08	1.17	1.04
British Pound (GBP)		1.32	1.28	1.34	1.25

The following table summarises KZT exchange rates at 31 December 2025 and 31 December 2024 and

for the years then ended:

	Average rate			Reporting date spot-rate
			31 December	31 December
KZT	2025	2024	2025	2024
US Dollar (USD)	521.59	469.44	505.53	525.11
Euro (EUR)	590.15	507.86	591.68	546.47
British Pound (GBP)	6 87.92	600.27	679.37	659.08

Finance income and costs

Finance income comprises interest income on bank deposits and gain on financial instruments through

profit and loss. Interest income from a financial asset is recognised when it is probable that the economic

benefits will flow to the Group and the amount of income can be measured reliably. Interest income is

accrued on a time basis, by reference to the carrying value and at the effective interest rate applicable,

which is the rate that exactly discounts estimated future cash receipts through the expected life of the

financial asset to that asset’s net carrying amount on initial recognition.

Finance costs comprise interest expense, bank commissions, losses on financial instruments through

profit and loss and other costs. Borrowing costs directly attributable to the acquisition, construction

or production of qualifying assets, which are assets that necessarily take a substantial period of time

to get ready for their intended use or sale, are added to the cost of those assets, until those assets

are substantially ready for their intended use or sale. All other borrowing costs are recognised in

profit or loss in the period in which they are incurred.

Investment income earned on the temporary investment of specific borrowings pending their

expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Overview Other informationStrategic report Governance

124AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed

as the related service is provided. A provision is recognised for the amount expected to be paid under

cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay

this amount as a result of past service provided by the employee and the obligation can be estimated

reliably.

Taxation

Income tax expense represents the sum of the tax currently payable, tax paid for the current period

and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs

from profit as reported in the profit or loss because it excludes items of income or expense that are

taxable or deductible in other years and it further excludes items that are never taxable or deductible.

The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively

enacted by the reporting date.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and

liabilities in the consolidated financial statements and the corresponding tax bases used in the

computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary

differences, and deferred tax assets are generally recognised for all deductible temporary differences

to the extent that it is probable that taxable profits will be available against which those deductible

temporary differences can be realised. Such assets and liabilities are not recognised if the temporary

difference arises in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the

extent that it is no longer probable that sufficient taxable profits will be available to allow all or part

of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the

period in which the liability is settled or the asset recognised, based on tax rates (and tax laws)

that have been enacted or substantively enacted by the reporting date. The measurement of deferred

tax liabilities and assets reflects the tax consequences that would follow from the manner in which

the Group expects, at the reporting date, to recover or settle the carrying amount of its assets

and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current

tax assets against current tax liabilities and when they relate to income taxes levied by the same

taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Current and deferred taxes are recognised in profit or loss, except when they relate to items that are

recognised in other comprehensive income or directly in equity, in which case, the current and deferred

taxes are also recognised in other comprehensive income or directly in equity, respectively.

Property, plant and equipment

Property, plant and equipment held for use in the supply of services, or for administrative purposes,

are stated in the consolidated statement of financial position at cost less accumulated depreciation

and impairment losses.

The financial interest attributed to pre-delivery payments made on account of aircraft and other

significant assets under construction is capitalised and added to the cost of the asset concerned.

Maintenance costs are recorded as expenses during the period when incurred, with the exception

of programs that extend the useful life of the asset or increase its value, which are then capitalised

(e.g. maintenance on airframes and engines).

Aircraft

The purchase price of aircraft is denominated in US dollar.

Aircraft are depreciated using a straight-line method over their average estimated useful life of 25 years

or over the lease terms, if the lease term is shorter than the 25-year period, assuming no residual value.

During the operating cycle, the Group reviews whether the depreciable base or the useful life should

be adjusted and, if necessary, determines whether a residual value should be recognised. The residual

value is measured as the estimated realizable value of the aircraft scrap metal.

Repairs for major airframes and engines of all aircraft are treated as a separate asset component

with the cost capitalised and depreciated over the period between the date of acquisition and the

next major overhaul.

Major overhaul expenditure, including replacement spares and labour costs, are capitalised and

amortised over the average expected life between major overhauls based on flight hours and cycles.

All other replacement spares and other costs relating to maintenance of an aircraft are charged to

profit or loss upon consumption or as incurred, respectively.

Overview Other informationStrategic report Governance

125AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Rotable spare parts

Rotable spare parts are carried in property, plant and equipment.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying

amount of the item if it is probable that the future economic benefits embodied within the part

will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing

of property, plant and equipment are recognised in profit or loss as incurred.

Other property, plant and equipment

Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost

of self-constructed assets includes the cost of materials and direct labour, any other costs directly

attributable to bringing the asset to a working condition for its intended use, and the costs of

dismantling and removing the items and restoring the site on which they are located. Purchased

software that is integral to the functionality of the related equipment is capitalised as part of

that equipment.

Depreciation

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives

of each part of an item of property, plant and equipment.

The estimated useful lives for the current and comparative periods are as follows:

–	Aircraft (excluding separate asset components)	25 years;
–	Buildings and premises	14-50 years;
–	Rotable spare parts	3-15 years;
–	Office and training equipment	4-20 years;
–	Vehicles	7-9 years;
–	Other	2-10 years.

Depreciation is recognised so as to write off the cost of assets (other than freehold land, properties

under construction and separate asset component of the aircraft) less their residual values over their

useful lives, using the straight-line method. Separate asset component of an aircraft is amortised over

the average expected life between major overhauls which is based on flight hours or cycles.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each

reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is de-recognised upon disposal or when no future economic

benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Intangible assets

Intangible assets acquired separately are reported at cost less accumulated amortisation and

impairment losses. Amortisation is charged on a straight-line basis over the estimated useful lives

of the assets. The estimated useful lives are reviewed at the end of each annual reporting period,

with the effect of any changes in estimate being accounted for on a prospective basis. The estimated

useful economic life of software for the current and comparative periods is from 7 to 10 years.

Impairment of tangible and intangible assets

At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets

to determine whether there is any indication that those assets have suffered an impairment loss.

If any such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an

individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the

asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets

are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest

group of cash- generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value

in use, the estimated future cash flows are discounted to their present value using a pre-tax discount

rate that reflects current market assessments of the time value of money and the risks specific to the

asset for which the estimates of future cash flows have not been adjusted. The Group identifies the

recoverable amount as the higher of value in use and fair value less costs of disposal.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a

revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating

unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying

amount does not exceed the carrying amount that would have been determined had no impairment

loss been recognised for the asset (or cash-generating unit) in prior years.

A reversal of an impairment loss is recognised immediately in profit or loss.

Overview Other informationStrategic report Governance

126AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Contingent liabilities and contingent assets

Contingent liabilities are not recognised in the consolidated financial statements. They are disclosed

in the notes to the consolidated financial statements, unless the possibility of an outflow of resources

embodying economic benefits is remote.

Contingent assets are not recognised in the consolidated financial statements. Where an inflow of

economic benefits is probable, they are disclosed in the notes to the consolidated financial statements.

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined

on a first-in-first-out basis, except for fuel and de-icing liquid, which are determined on the weighted

average cost basis. Fuel and de-icing liquid are written off upon actual consumption. Net realizable

value represents the estimated selling price for inventories less all estimated costs of completion and

costs necessary to make the sale.

Expenditures incurred in acquiring the inventories such as customs duties, freight and broker’s services

are accumulated into a separate inventory account and allocated depending on use of relevant inventory.

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result

of a past event, it is probable that the Group will be required to settle the obligation, and a reliable

estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the

present obligation at the reporting date, taking into account the risks and uncertainties surrounding

the obligation. Where a provision is measured using the cash flows estimated to settle the present

obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered

from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement

will be received and the amount of the receivable can be measured reliably.

Provision for aircraft maintenance under lease agreement without transfer of title

The Group is obligated to perform regular scheduled maintenance of aircraft under the terms of

its lease agreements without transfer of title and regulatory requirements relating to air safety.

The lease agreements also require the Group to return aircraft to lessors in a satisfactory condition

at the end of the lease term, which may require the performance of final return conditions.

The Group’s scheduled aircraft maintenance programs carried out through the lease periods are

designed to reduce the incidence of final return costs. Major aircraft maintenance relates to airframes

(referred to as the C- check, D-check and redelivery preparation program) and engines. The C-check is

heavy maintenance with approved performance intervals. It takes place the earliest of every 6,000 –

12,000 flight hours, 3,000 – 8,000 flight cycles and 18-36 months according to aircraft type.

The D-check (4С, 6YR, 12YR) is heavy maintenance connected with deep aircraft disassembly, structure

inspection and anticorrosion prevention program. It takes place with an interval of not more than

72 months. Engine overhaul occurs after specified flight hours or cycles occur. Some of the lease

agreements without transfer of title include a component of variable lease payments which is

generally reimbursable to the Group by lessors as a contribution to engine maintenance costs after

they are incurred.

The variable lease payments are recognised as an expense in profit or loss as incurred. In the case

of other lease agreements without transfer of title variable lease payments are replaced (subject to

certain conditions) by Letters of Credit as security for Lessors to cover any unfulfilled maintenance

liabilities on the return of the aircraft, and amounts corresponding to the applicable variable lease

amounts are included in provisions. For C-check maintenance, a provision is recorded on a progressive

basis based upon the Group’s estimate of future maintenance costs. For engine maintenance,

a provision is recorded on a progressive basis based upon the Group’s estimate of the excess of

maintenance costs over the amount reimbursable by the lessors. The Group’s aircraft maintenance

liabilities are due in US Dollars.

For scheduled maintenance events that are dependent on aircraft utilisation (flight hours or

flight cycles), the Group recognises a provision on a progressive basis as the aircraft is operated.

The expected cost of each major maintenance event is estimated and allocated over the relevant

maintenance interval (in flight hours, flight cycles or calendar time, as applicable). A cost rate per flight

hour or flight cycle is determined, and the provision is accrued based on actual utilisation accumulated

since the last maintenance event.

Overhaul and restoration works (not dependant on aircraft utilisation)

Costs resulting from restoration work required to be performed just before returning aircraft to the

lessors, such as painting of the shell or aircraft overhaul are recognized as provisions as of the inception

of the contract. The counterpart of these provisions is booked as a complement through the initial book

value of the aircraft right-of-use assets. This complement to the right-of-use asset is depreciated over

the lease term.

Overview Other informationStrategic report Governance

127AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Financial instruments

Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets and

financial liabilities are initially recognised when the Group becomes a party to the contractual

provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial

liability is initially measured at fair value plus, for an item not at fair value through profit or loss

(FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable

without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost; fair value through

other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its

business model for managing financial assets, in which case all affected financial assets are reclassified

on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not

designated as at FVTPL:

– it is held within a business model whose objective is to hold assets to collect contractual cash flows;

and

– its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not

designated as at FVTPL:

– it is held within a business model whose objective is achieved by both collecting contractual cash

flows and selling financial assets; and

– its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably

elect to present subsequent changes in the investment’s fair value in OCI. This election is made on

an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are

measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may

irrevocably designate a financial asset that otherwise meets the requirements to be measured at

amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting

mismatch that would otherwise arise.

Financial assets – Business model assessment

The Group makes an assessment of the objective of the business model in which a financial asset is

held at a portfolio level, because this best reflects the way the business is managed and information

is provided to the management. The information considered includes:

– the stated policies and objectives for the portfolio and the operation of those policies in practice.

These include whether the management’s strategy focuses on earning contractual interest income,

maintaining a particular interest rate profile, matching the duration of the financial assets to the

duration of any related liabilities or expected cash outflows or realising cash flows through the

sale of the assets;

– how the performance of the portfolio is evaluated and reported to the Group’s management;

– the risks that affect the performance of the business model (and the financial assets held within

that business model) and how those risks are managed;

– how managers of the business are compensated – e.g. whether compensation is based on the fair

value of the assets managed or the contractual cash flows collected; and

– the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such

sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for de-recognition are

not considered sales for this purpose, consistent with the Group’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair

value basis are measured at FVTPL.

Overview Other informationStrategic report Governance

128AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Financial assets – Assessment whether contractual cash flows are solely payments of principal

and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on

initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit

risk associated with the principal amount outstanding during a particular period of time and for other

basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the

Group considers the contractual terms of the instrument. This includes assessing whether the financial

asset contains a contractual term that could change the timing or amount of contractual cash flows

such that it would not meet this condition. In making this assessment, the Group considers:

– contingent events that would change the amount or timing of cash flows;

– terms that may adjust the contractual coupon rate, including variable-rate features;

– prepayment and extension features; and

– terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the

prepayment amount substantially represents unpaid amounts of principal and interest on the principal

amount outstanding, which may include reasonable additional compensation for early termination

of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual

par amount, a feature that permits or requires prepayment at an amount that substantially represents

the contractual par amount plus accrued (but unpaid) contractual interest (which may also include

reasonable additional compensation for early termination) is treated as consistent with this criterion

if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets – Subsequent measurement and gains and losses

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains
	and losses, including any interest or dividend income, are recognised
	in profit or loss.
Financial assets at amortised cost	These assets are subsequently measured at amortised cost using the
	effective interest method. The amortised cost is reduced by impairment
	losses. Interest income, foreign exchange gains and losses and
	impairment are recognised in profit or loss. Any gain or loss on
	de-recognition is recognised in profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income
	calculated using the effective interest method, foreign exchange gains
	and losses and impairment are recognised in profit or loss. Other net
	gains and losses are recognised in OCI. On de-recognition, gains and
	losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends
	are recognised as income in profit or loss unless the dividend clearly
	represents a recovery of part of the cost of the investment. Other net
	gains and losses are recognised in OCI and are never reclassified to
	profit or loss.

Financial liabilities – Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified

as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial

recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including

any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently

measured at amortised cost using the effective interest method. Interest expense and foreign

exchange gains and losses are recognised in profit or loss. Any gain or loss on de-recognition is

also recognised in profit or loss.

Overview Other informationStrategic report Governance

129AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Modification of financial assets and financial liabilities

Financial assets

If the terms of a financial asset are modified, the Group evaluates whether the cash flows of the

modified asset are substantially different. If the cash flows are substantially different (referred to as

‘substantial modification’), then the contractual rights to cash flows from the original financial asset are

deemed to have expired. In this case, the original financial asset is de-recognised and a new financial

asset is recognised at fair value.

The Group performs a quantitative and qualitative evaluation of whether the modification is substantial,

i.e. whether the cash flows of the original financial asset and the modified or replaced financial asset

are substantially different. The Group assesses whether the modification is substantial based on

quantitative and qualitative factors in the following order: qualitative factors, quantitative factors,

combined effect of qualitative and quantitative factors. If the cash flows are substantially different,

then the contractual rights to cash flows from the original financial asset is deemed to have expired.

In making this evaluation the Group analogizes to the guidance on the de-recognition of financial

liabilities.

The Group concludes that the modification is substantial as a result of the following qualitative factors:

– change the currency of the financial asset;

– change in collateral or other credit enhancement.

If the cash flows of the modified asset carried at amortised cost are not substantially different, then the

modification does not result in de-recognition of the financial asset. In this case, the Group recalculates

the gross carrying amount of the financial asset and recognises the amount arising from adjusting the

gross carrying amount as a modification gain or loss in profit or loss. The gross carrying amount of the

financial asset is recalculated as the present value of the renegotiated or modified contractual cash

flows that are discounted at the financial asset’s original effective interest rate. Any costs or fees

incurred adjust the carrying amount of the modified financial asset and are amortised over the

remaining term of the modified financial asset.

Financial liabilities

The Group de-recognises a financial liability when its terms are modified and the cash flows of the

modified liability are substantially different. In this case, a new financial liability based on the modified

terms is recognised at fair value. The difference between the carrying amount of the financial liability

extinguished and the new financial liability with modified terms is recognised in profit or loss.

If a modification (or exchange) does not result in the de-recognition of the financial liability the Group

applies an accounting policy consistent with the requirements for adjusting the gross carrying amount

of a financial asset when a modification does not result in the de-recognition of the financial asset,

i.e. the Group recognises any adjustment to the amortised cost of the financial liability arising from

such a modification (or exchange) in profit or loss at the date of the modification (or exchange).

Changes in cash flows on existing financial liabilities are not considered as modification, if they result

from existing contractual terms, e.g. changes in fixed interest rates initiated by banks due to changes

in the Secured Overnight Financing Rate (SOFR), National Bank of Kazakhstan rates (NBRK) and other

key rates. The Group treats the modification of an interest rate to a current market rate using the

guidance on variable-rate financial instruments. This means that the effective interest rate is adjusted

prospectively.

The Group performs a quantitative and qualitative evaluation of whether the modification is substantial

considering qualitative factors, quantitative factors and combined effect of qualitative and quantitative

factors. The Group concludes that the modification is substantial as a result of the following qualitative

factors:

– change in the currency of the financial liability;

– change in collateral or other credit enhancement;

– inclusion of conversion option;

– change in the subordination of the financial liability.

For the quantitative assessment the terms are substantially different if the discounted present value of

the cash flows under the new terms, including any fees paid net of any fees received and discounted

using the original effective interest rate, is at least 10 per cent different from the discounted present

value of the remaining cash flows of the original financial liability. If an exchange of debt instruments

or modification of terms is accounted for as an extinguishment, any costs or fees incurred are

recognised as part of the gain or loss on the extinguishment. If the exchange or modification is

not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount

of the liability and are amortised over the remaining term of the modified liability.

Overview Other informationStrategic report Governance

130AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

De-recognition

Financial assets

The Group de-recognises a financial asset when the contractual rights to the cash flows from the

financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction

in which substantially all of the risks and rewards of ownership of the financial asset are transferred or

in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership

and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognised in its consolidated statement

of financial position, but retains either all or substantially all of the risks and rewards of the transferred

assets. In these cases, the transferred assets are not de-recognised.

Financial liabilities

The Group de-recognises a financial liability when its contractual obligations are discharged or

cancelled, or expire. The Group also de-recognises a financial liability when its terms are modified and

the cash flows of the modified liability are substantially different, in which case a new financial liability

based on the modified terms is recognised at fair value.

On de-recognition of a financial liability, the difference between the carrying amount extinguished and

the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised

in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the consolidated

statement of financial position when, and only when, the Group currently has a legally enforceable

right to set off the amounts and it intends either to settle them on a net basis or to realise the asset

and settle the liability simultaneously.

Derivatives and hedging activities

Initial recognition and subsequent measurement

The Group uses derivative financial instruments such as commodity derivatives to hedge its risks

associated with jet-fuel price fluctuations. Such derivative financial instruments are initially recognised

at fair value on the date on which the derivative contracts are entered into and are subsequently

re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive

and as financial liabilities when the fair value is negative.

The fair value of commodity derivatives are determined by reference to available market information

and swap/forward valuation methodology. Any gains or losses arising from changes in fair value of

derivatives are taken directly to consolidated statement of profit or loss, except for the effective portion

and cost of hedging for cash flow hedges, which are recognised in OCI.

For the purpose of hedge accounting, hedges are classified as:

– Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or

liability or an unrecognised firm commitment;

– Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable

to a particular risk associated with a recognised asset or liability or a highly probable forecast

transaction or the foreign currency risk in an unrecognised firm commitment;

– Hedges of a net investment in a foreign operation.

The Group considers transactions with the probability of occurrence more than ninety percent highly

probable transactions.

At the inception of the hedge, the Group formally designates and documents the hedging relationship

to which the Group wishes to apply hedge accounting, and the risk management objective and

strategy for undertaking the hedge. That documentation includes identification of the hedging

instrument, the hedged item, the nature of the risk being hedged and how the entity will assess

whether the hedging relationship meets the hedge effectiveness requirements (including its analysis

of the sources of hedge ineffectiveness and how it determines the hedge ratio).

Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash

flows and are assessed on an ongoing basis at each reporting date or upon a significant change in the

circumstances affecting the hedge effectiveness requirements, whichever comes first. The assessment

relates to expectations about hedge effectiveness and is therefore only forward-looking.

Hedges that meet the strict criteria for hedge accounting are accounted for as described below:

Cash flow hedges

The effective portion of the gains or losses on the hedging instrument is recognised directly in OCI in

the cash flow hedge reserve, while any ineffective portion is recognised immediately in the consolidated

statement of profit or loss.

The Group uses fuel options contracts as hedges of its exposure to jet fuel price fluctuations in forecast

transactions and firm commitments. The ineffective portion relating to the ineffective portion relating

to commodity contracts is recognised in the consolidated statement of profit or loss.

Overview Other informationStrategic report Governance

131AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

Amounts recognised as OCI are transferred to the consolidated statement of profit or loss when the

hedged transaction affects the consolidated statement of profit or loss, such as when the hedged

financial expense is recognised or when a forecast transaction occurs. When the hedged item is the

cost of a non-financial asset or non-financial liability, the amounts recognised as OCI are transferred

to the initial carrying amount of the non-financial asset or liability.

If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or

loss previously recognised in equity is transferred to the consolidated statement of profit or loss. If the

hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its

designation as a hedge is revoked, any cumulative gain or loss previously recognised in OCI remains in

OCI until the forecast transaction or firm commitment affects consolidated statement of profit or loss.

If the hedge ratio for risk management purposes is no longer optimal but the risk management

objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge

relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume

of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.

Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge

relationship rebalancing.

Cost of hedging

If the time value of a purchased option is separated and excluded from the designated hedging

instrument, then the excluded portion is separately accounted for as a cost of hedging. As such,

the change in fair value of the excluded portion is recognised in OCI and accumulated in a separate

component of equity to the extent that it relates to the hedged item.

As a result of the above accounting, fluctuations in the fair value of the time value element will be

accounted in OCI, both positive and negative. At the maturity date, the time value of option becomes

zero, the fair value is equal to the intrinsic value.

Crude oil commodity options

The Group has also entered into certain crude oil commodity options to mitigate the risk of variability

of future cash flows on jet fuel consumptions. These are just purely economic hedges and changes to

its value are directly charged to the consolidated statement of profit or loss within ‘Fuel and oil costs’.

Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to issue of ordinary

shares and share options are recognised as a deduction from equity, net of any tax effects.

Dividends

Dividends are recognised as a liability in the period in which they are declared.

Impairment of financial assets

The Group recognises loss allowances for expected credit losses (ECLs) on:

– financial assets measured at amortised cost;

– debt investments measured at FVOCI.

The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following,

which are measured at 12-month ECLs:

– guarantee deposits and bank balances that are determined to have low credit risk at the reporting

date; and

– other guarantee deposits and bank balances for which credit risk (i.e. the risk of default occurring

over the expected life of the financial instrument) has not increased significantly since initial

recognition.

Loss allowances for trade receivables and contract assets are always measured at an amount equal

to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial

recognition and when estimating ECLs, the Group considers reasonable and supportable information

that is relevant and available without undue cost or effort.

This includes both quantitative and qualitative information and analysis, based on the Group’s

historical experience and informed credit assessment and including forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than

30 days past due or if the external credit rating assigned to a financial asset by an international rating

agency falls by six notches according to Standard and Poor’s Global Ratings (S&P Global Ratings),

Moody’s or Fitch credit rating agencies.

Overview Other informationStrategic report Governance

132AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

3. Significant accounting policies continued

The Group considers a financial asset to be in default when:

– the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the

Group to actions such as realising security (if any is held); or

– the financial asset is more than 90 days past due.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent

to the globally understood definition of ‘investment grade’. The Group considers this to be Baa3 or

higher per Moody’s or BBB- or higher per S&P Global Ratings.

Lifetime ECLs are the ECLs that result from all possible default events over the contractual life of a

financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the

12 months after the reporting date (or a shorter period if the expected life of the instrument is less

than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which

the Group is exposed to credit risk.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present

value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance

with the contract and the cash flows that the Group expects to receive).

ECLs are discounted at the effective interest rate of the financial asset.

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt

securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events

that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

– significant financial difficulty of the borrower or issuer;

– a breach of contract such as a default or being more than 90 days past due;

– the restructuring of a loan or advance by the Group on terms that the Group would not consider

otherwise;

– it is probable that the borrower will enter bankruptcy or other financial reorganisation;

– or the disappearance of an active market for a security because of financial difficulties.

Presentation of allowance for ECL in the consolidated statement of financial

position

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying

amount of the assets.

For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable

expectations of recovering a financial asset in its entirety or a portion thereof. The Group makes an

assessment with respect to the timing and amount of write-off based on whether there is a reasonable

expectation of recovery. The Group expects no significant recovery from the amount written off.

Overview Other informationStrategic report Governance

133AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

4. Application of new and revised international financial reporting

standards

New standards and interpretations not yet adopted

The new and amended standards and interpretations that are issued, but not yet effective, up to the

date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt

these new and amended standards and interpretations, if applicable, when they become effective.

(a) IFRS 18 Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18

introduces new requirements for presentation within the statement of profit or loss, including specified

totals and subtotals. Furthermore, entities are required to classify all income and expenses within the

statement of profit or loss into one of five categories: operating, investing, financing, income taxes and

discontinued operations, whereof the first three are new.

The standard requires disclosure of newly defined management-defined performance measures,

subtotals of income and expenses, and it also includes new requirements for aggregation and

disaggregation of financial information based on the identified ‘roles’ of the primary financial

statements (PFS) and the notes.

In addition, narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which

include changing the starting point for determining cash flows from operations under the indirect

method, from ‘profit or loss’ to ‘operating profit or loss’ and removing the optionality around

classification of cash flows from dividends and interest. In addition, there are consequential

amendments to several other standards.

IFRS 18, and the amendments to the other standards, are effective for reporting periods beginning on

or after 1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply

retrospectively.

The Group is currently working to identify all impacts the amendments will have on the primary

financial statements and notes to the financial statements. The initial expected material impacts

on Group’s financial statements are, as follows:

– New disclosures will be added: (a) management-defined performance measures; and (b) a

reconciliation for each line item in the statement of profit or loss between the restated amounts

presented applying IFRS 18 and the amounts previously presented applying IAS 1.

– Interest received and interest paid will be classified in the investing activities and financing

activities, respectively, on the statement of cash flows.

(b) Other accounting standards

The following new and amended standards are not expected to have a significant impact on the

Group’s consolidated financial statements.

– Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7).

– IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024).

– Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a

Hyperinflationary Presentation Currency (issued on 13 November 2025).

– Annual Improvements Volume 11 (issued on 18 July 2024).

– Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

(issued on 18 December 2024).

As the Group’s equity instruments are publicly traded, it is not eligible to elect to apply IFRS 19.

New and amended standards and interpretations

The Group applied for the first-time certain standards and amendments, which are effective for annual

periods beginning on or after 1 January 2025 (unless otherwise stated). The Group has not early

adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

(a) Lack of exchangeability – Amendments to IAS 21

For annual reporting periods beginning on or after 1 January 2025, Lack of Exchangeability –

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates specifies how an entity should

assess whether a currency is exchangeable and how it should determine a spot exchange rate when

exchangeability is lacking. The amendments also require disclosure of information that enables users of

its financial statements to understand how the currency not being exchangeable into the other currency

affects, or is expected to affect, the entity’s financial performance, financial position and cash flows.

The amendments did not have a material impact on the Group’s financial statements.

Overview Other informationStrategic report Governance

134AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

5. Critical accounting judgments and key sources of estimation

uncertainty

The preparation of consolidated financial statements in conformity with IFRS Accounting Standards

requires the management to make judgments, estimates and assumptions that affect the application of

accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results

may differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only

that period or in the period of the revision and future periods if the revision affects both current and

future periods.

The following are the critical judgments and estimates that the management have made in the process

of applying the Group’s accounting policies and that have the most significant effect on the amounts

recognised in the consolidated financial statements.

Provisions

Provisions mainly consist of provision for aircraft maintenance (Note 22).

The maintenance provision is measured at the best estimate of expected future maintenance costs,

taking into account contractual pricing adjustments, including supplier credit notes that reduce the

unavoidable expenditure required to settle the obligation.

Determination of the functional currency

The functional currency of the Company is USD which, in the management’s view, reflects the economic

substance of the underlying events and circumstances of the Group at the reporting date. At each

reporting date the management of the Group reassesses factors that may affect the determination of

the functional currency based on circumstances at the reporting date. Significant judgment is required

from the management when analysing indicators of the primary economic environment including the

pricing policy, structure of revenues from international and domestic routes, costs structure as well as

continued development in the strategy of the Group for further development of international routes.

Future circumstances, therefore, may be different and may result in a different conclusion.

Useful lives of property, plant and equipment

In reporting intangible assets and tangible assets, an assessment is made of the useful economic life.

The Group reviews the useful lives of property, plant and equipment and intangible assets at least

annually and adjusts them if expectations differ from previous estimates.

The Group assesses at each reporting date whether there are indicators that an asset may be impaired.

If such indicators exist, the impairment test is made. Certain assets, such as goodwill, intangible assets

with indefinite useful lives and intangible assets not yet available for use, are tested for impairment at

least annually irrespective of whether impairment indicators exist.

Allowances

The Group accrues allowances for impairment of accounts receivable. The Group calculated the

probability of default of accounts receivable based on the lifetime approach. Changes in the economy

and specific customer conditions may require adjustments of the probability of default and loss given

default coefficient derived based on the historical information and thus adjustment for impairment of

accounts receivable recorded in the consolidated financial statements. As at 31 December 2025 and

2024, allowances for doubtful accounts were equal to USD 762 thousand, USD 882 thousand,

respectively (Note 16).

Other financial assets are mainly credit rated by one or more international credit rating agencies:

Moody’s, Fitch, and S&P Global Ratings. The estimated credit loss is calculated for the entire useful

life for those assets whose credit risk has increased significantly comparing to its level at the initial

recognition date. Once the instrument is impaired the Group calculates allowances for doubtful

accounts based on the expected future cash flows discounted at the original effective interest rate.

Interest on the impaired asset continues to be recognised through the unwinding of the discount.

When credit risk significantly decreases for those assets which previously have been classified in Stage

2, the Group performs an analysis to determine whether the current financial position of the borrower is

stable enough to reclassify such assets back to Stage 1. As at 31 December 2025 impairment allowances

were equal to USD 44,534 thousand as disclosed in Note 16 (31 December 2024: USD 44,357 thousand).

The Group annually estimates the necessity of write-down for obsolete and slow-moving inventories

based on annual stock count data conducted at the reporting date. As at 31 December 2025, the Group

recognised a write-down for obsolete and slow-moving inventories in the amount of USD 7,461 thousand

(2024: USD 5,590 thousand) (Note 14).

Overview Other informationStrategic report Governance

135AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

5. Critical accounting judgments and key sources of estimation

uncertainty continued

Customer loyalty program

The Group’s Nomad Club Loyalty program is an incentive program under which passengers are granted

points for each flight. Once a passenger accumulates a certain number of points he or she can convert

the points into a ticket. Loyalty points granted to customers represent a separate performance

obligation. Accordingly, a portion of the transaction price of the related ticket sales is allocated

to the loyalty points and recognised as a contract liability until the points are redeemed or expire.

While calculating the contract liability related to the customer loyalty program, the Group uses critical

judgements and estimates in regard to the expected redemption rate of points and the standalone

selling price (“SSP”) per point by Nomad Club members. The estimated redemption rate applied as

at 31 December 2025 and 31 December 2024 were 52.19% and 52.53%.

The Group uses estimated ticket values to calculate the program’s point value. Outstanding unutilized

points as of each reporting date are treated as a contract liability (deferred revenue). Points are valued

based on the weighted average standalone prices of tickets redeemed by route and class. The weighted

average standalone selling price per point as at 31 December 2025 and 31 December 2024 were

approximately USD 0.0122 and 0.0136 per point.

Based on historical statistics the Group determines the amount of breakage with regards to those

points whose usage is not probable. Breakage is recognised as revenue in proportion to the pattern

of point redemptions when it becomes highly probable that a significant reversal of revenue will not

occur. The estimated breakage rate applied as at 31 December 2025 and 31 December 2024 were

47.81% and 47.47%.

Lease term

Some property leases contain extension options exercisable by the Group up to one year before the

end of the non-cancellable contract period. Where practicable, the Group seeks to include extension

options in new leases to provide operational flexibility. The extension options held are exercisable only

by the Group and not by the lessors. The Group assesses at lease commencement date whether it is

reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably

certain to exercise the options if there is a significant event or significant changes in circumstances

within its control.

The Group has applied judgment to determine the lease term for some lease contracts in which it

is a lessee, based on the period for which the contract is enforceable. For certain property leases

the contractual term does not include enforceable renewal options. Although the parties may discuss

continuation of the lease at the end of the contractual term, the terms and conditions of any extension

(including lease payments and other key terms) are not predetermined and are subject to renegotiation

between the parties.

Accordingly, both the Group and the lessor have the practical ability not to continue the arrangement if

agreement on the new terms cannot be reached. In such cases the Group considers that the enforceable

period corresponds to the non-cancellable contractual period and therefore the lease term does not

extend beyond the original contract term.

Any continuation of the lease beyond the contractual term is treated as a new lease agreement once

the parties agree on revised terms and conditions.

Overview Other informationStrategic report Governance

136AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

5. Critical accounting judgments and key sources of estimation

uncertainty continued

Deferred tax asset recoverability and compliance with tax legislation

Tax legislation of Kazakhstan are subject to frequent changes and varying interpretations. The

management’s interpretation of such legislation in applying it to business transactions of the Group

may be challenged by the relevant regional authorities enabled by law to impose fines and penalties.

It is possible that the tax treatment of transactions that have not been challenged in the past may be

challenged. Fiscal periods remain open to review by the tax authorities in respect of taxes for the five

calendar years preceding the year of tax review.

Under certain circumstances reviews may cover longer periods. While the Group believes it has

provided adequately for all tax liabilities based on its understanding of the tax legislation, the above

facts may create additional financial risks for the Group.

Critical accounting judgements and key sources of estimation uncertainty in the

determination of the impact of climate change

As a result of climate change the Group has designed and approved its climate strategy, which commits

the Group to net zero emissions by 2050. While approved business plans currently have a duration of

five years, the climate strategy impacts both the short, medium and long-term operations of the Group.

The details regarding the inputs and assumptions used in the determination of the climate strategy

include, but are not limited to, the following that are within the control of the Group:

– With the introduction of SAF mandates in key international markets, we anticipate increased fuel

costs and potential infrastructure adaptation requirements. Although SAF is not yet widely available,

we recognise its importance in aviation decarbonisation and have taken proactive steps to prepare

for SAF integration.

– The cost of incurring an increase in the level of carbon offsetting and carbon capture schemes; and

– The impact of introducing more fuel-efficient aircraft and being able to operate these more

efficiently.

In addition to these inputs and measures within the control of management, Flightpath Net Zero

includes assumptions pertaining to consumers, governments and regulators regarding the following:

– The impact on passenger demand for air travel as a result of both passenger trends regarding

climate change and government policies;

– Investment and policy regarding the development of Sustainable Aviation Fuel (SAF) production

facilities;

– Investment and improvements in air traffic management; and

– The price of carbon through the EU and UK Emissions Trading Schemes (ETS) and the UN Carbon

Offsetting and Reduction Scheme for International Aviation (CORSIA).

The level of uncertainty regarding the impact of these factors increases over time. Accordingly,

the Group has applied estimation in the evaluation of the impact of climate change regarding

the recognition and measurement of assets and liabilities within the financial statements.

Overview Other informationStrategic report Governance

137AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

6. Segment reporting

For management purposes, the Group is organised into legal entities based on its services and has

two reportable segments, as follows:

– Full-service brand Air Astana, that provides scheduled and charter, point-to-point and transit,

short-haul and long-haul air travel and cargo on domestic, regional and international routes.

– Low-cost brand FlyArystan, that provides scheduled short haul and medium-haul, point-to-point

air travel across Kazakhstan and further into the Caucasus, Central Asia, Turkey and the Middle East.

No operating segments have been aggregated to form the above reportable operating segments.

The Group’s management makes decisions regarding resource allocation to segments based upon the

results and the activities of its full-service brand Air Astana and low-cost brand FlyArystan segments

for the purpose of segments’ performance evaluation. The Group management uses the operating

profit calculated according to IFRS accounting standards while evaluating the performance of the

segments adjusted for the impact of inter-segments leases.

The Group amended the treatment of intercompany leases costs between Air Astana and FlyArystan

in its segment reporting to consistently apply IFRS 16 Leases in both operating segments.

As a result of this change, the Group has recognized the depreciation of right-of-use assets arising from

these intercompany lease transactions with FlyArystan. These transactions are treated as inter segment

transactions and are reflected in elimination section of the segment report. The Group does not

conduct separate analyses of the financial position for each segment.

Operating results for the years ended 31 December 2025 and 2024:

’000	USD	2025	2025	Inter-group
Consolidated Profit or Loss statement		Air Astana	FlyArystan	elimination	Total
Revenue and other income
Passenger revenue		1,047,824	332,486	(4)	1,380,306
Other income		74,346	2,264	(6 8,161)	8,449
Gain from sale and leaseback transactions		37,76 4	–	–	37,764
Cargo and mail revenue		27,376	1,989	(1,994)	27,371
Lease		22,109	54,123	(76,232)	–
Total revenue and other income		1,209,419	390,862	(146,391)	1,453,890

’000	USD	2025	2025	Inter-group
Consolidated Profit or Loss statement		Air Astana	FlyArystan	elimination	Total
Operating expenses
Fuel and oil costs		(244,633)	(87,153)	320	(331,466)
Employee and crew costs		(239,094)	(49,032)	27,230	(260,896)
Depreciation and amortisation		(163,226)	(76,486)	9,972	(229,740)
Passenger service		(122,166)	(19,389)	970	(140,585)
Engineering and maintenance		(117, 324)	(78,950)	51,238	(145,036)
Handling, landing fees and route charges		(116,367)	(29,796)	5,160	(141,003)
Selling costs		(48,521)	(2,503)	–	(51,024)
Aircraft operating lease costs		(36,253)	(6,405)	40,440	(2,218)
Insurance		(9,670)	(3,879)	–	(13,549)
Consultancy, legal and professional services		(7,50 8)	(17,870)	19,443	(5,935)
Information technology		(7,192)	(887)	18	(8,061)
Taxes, other than income		(5,189)	(429)	–	(5,618)
Property and office cost		(4,732)	(119)	6	(4,845)
Other		(26,840)	(1,727)	2,778	(25,789)
Total operating expenses		(1,148,715)	(374,625)	157,575	(1,365,765)
Operating profit		60,704	16,237	11,184	88,125
Finance income		20,831	12,829	(11,353)	22,307
Finance costs		(57,4 40)	(37,291)	12,325	(82,406)
Foreign exchange loss, net		(7,009)	(897)	–	(7,906)
Profit before tax		17,086	(9,122)	12,156	20,120
Income tax expense		(6,861)	293	–	(6,568)
Profit for the period		10,225	(8,829)	12,156	13,552

Finance income and finance costs presented above include interest income and interest expense

recognised by each segment.

No single customer represents more than 10% of revenue.

Overview Other informationStrategic report Governance

138AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

6. Segment reporting continued

		31 December	31 December
		2025	2025	Inter-group
’000	USD	Air Astana	FlyArystan	elimination	Total
Other Segmental Information
Total Assets		1,581,132	711,508	(236,059)	2,056,581
Total Liabilities		1,207,869	710,833	(231,435)	1,687,267

’000	USD	2024	2024	Inter-group
Consolidated Profit or Loss statement		Air Astana	FlyArystan	elimination	Total
Revenue and other income
Passenger revenue		917,187	328,867	(10)	1,246,044
Lease		69,867	21,531	(91,398)	–
Cargo and mail revenue		23,891	2,412	–	26,303
Gain from sale and leaseback transactions		12,063	12,953	–	25,016
Other income		11,351	1,734	(1,300)	11,785
Total revenue and other income		1,034,359	367,497	(92,708)	1,309,148
Operating expenses
Fuel and oil costs		(220,897)	(84,286)	–	(305,183)
Employee and crew costs		(171,666)	(55,969)	976	(226,659)
Depreciation and amortisation		(157,903)	(61,133)	29,865	(189,171)
Passenger service		(102,857)	(15,820)	–	(118,677)
Engineering and maintenance		(97,572)	(57,60 0)	37,298	(117,874)
Handling, landing fees and route charges		(92,985)	(27,504)	4	(120,485)
Selling costs		(41,058)	(3,124)	2	(4 4,180)
Aircraft operating lease costs		(18,843)	(4,016)	17,643	(5,216)
Insurance		(8,870)	(3,931)	–	(12,801)
Consultancy, legal and professional services		(7,753)	(859)	200	(8,412)
Information technology		(4,640)	(2,191)	–	(6,831)
Taxes, other than income		(4,303)	(58)	–	(4,361)
Property and office cost		(4,185)	(490)	–	(4,675)
Other		(12,509)	(2,108)	–	(14,617)
Total operating expenses		(946,041)	(319,089)	85,988	(1,179,142)
Operating profit		88,318	48,408	(6,720)	130,006

’000	USD	2024	2024	Inter-group
Consolidated Profit or Loss statement		Air Astana	FlyArystan	elimination	Total
Finance income		17,774	6,093	(1,788)	22,079
Finance costs		(51,177)	(22,844)	9,365	(64,656)
Foreign exchange loss, net		(12,994)	(7,749)	–	(20,743)
Profit before tax		41,921	23,908	857	66,686
Income tax expense		(9,041)	(4,869)	–	(13,910)
Profit for the period		32,880	19,039	857	52,776

		31 December	31 December
		2024	2024	Inter-group
’000	USD	Air Astana	FlyArystan	elimination	Total
Other Segmental Information
Total Assets		1,459,052	537,877	(183,854)	1,813,075
Total Liabilities		1,057,244	528,392	(167,091)	1,418,545

7. Revenue and other income

The Group’s revenue from contracts with customers primarily comprises passenger transportation

services and cargo and mail transportation services. Passenger revenue and cargo and mail revenue

presented below represent revenue recognised from contracts with customers.

’000	USD	2025	2024
Passenger revenue
Scheduled passenger flights including:		1,276,827	1,151,415
Fuel surcharge		117,916	96,636
Airport services		71,186	59,984
Excess baggage		6,701	6,000
Charter flights		100,479	94,629
		1,380,306	1,246,044

Passenger revenue increased by USD 134,262 thousand, or 10.78% increase, for the period ended

31 December 2025 as compared to the same period in 2024.

Overview Other informationStrategic report Governance

139AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

7. Revenue and other income continued

’000	USD	2025	2024
Cargo and mail revenue
Cargo – Regular		25,235	23,937
Mail		2,136	2,366
		27,371	26,303

’000	USD	2025	2024
Other income
Incidental income		1,856	7,582
Income from ground services		1,841	1,738
Gain on disposal of property, plant and equipment and other assets		984	717
Other		3,768	1,748
		8,449	11,785

Gain from sale and leaseback transactions

The Group sold six spare engines during 2025 for cash of USD 145,274 thousand. Immediately before

the transaction, the engines were carried at a cost of USD 73,610 thousand. At the same time, the

Group entered into the contracts with Buyer-lessors for the right to use the engines for eight years

with monthly payments. The terms and conditions of the transactions are such that the transfer of

the building by the Group satisfies the requirements of IFRS 15 Revenue from Contracts with Customers

to be accounted for as a sale of the engines. Accordingly, the Group and Buyer-lessor accounted for

the transaction as a sale and leaseback.

The fair value of the engines at the date of sale was USD 139,742 thousand. Because the consideration

for the sales of the engines was not at fair value, the Group and Buyer-lessor made adjustments to

measure the sale proceeds at fair value. Applying paragraph 101(b) of IFRS 16, the amount of the

excess sale price over the fair price of USD 5,533 thousand was recognised as additional financing

provided by Buyer-lessors to the Group. The present value of the annual payments was USD 68,466

thousand, of which USD 5,533 thousand related to the additional financing and USD 62,934 thousand

related to the lease-corresponding to annual payments.

Applying paragraph 100(a) of IFRS 16, at the commencement date, the Group measured the right-of-

use asset arising from the leaseback of the engines at the proportion of the previous carrying amount

of the engines that relates to the right-of-use retained by the Group, which is USD 34,566 thousand.

Accordingly, the Group recognized a net gain of USD 37,764 thousand which represents the excess

of the sale proceeds over lease liabilities and the changes in engines’ related assets.

The Group purchased three spare engines in 2024 which were immediately sold as part of a sale and

leaseback transaction. Additionally, one engine purchased in April 2024 was sold in December 2024

as a part of sale and leaseback transaction. The Group measured the right-of-use assets arising from

the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of -

use retained by the Group. Accordingly, the Group recognized a net gain of USD 25,016 thousand which

represents the excess of the sale proceeds over lease liabilities and the changes in engines’ related assets.

The Group has sold the spare engines for the total amount of USD 90,500 thousand and recognised

a right-of-use assets of USD 21,396 thousand and lease liabilities of USD 41,686 thousand. Under the

lease agreement the Group has leased back the spare engines for eight years with monthly payments.

The geographical analysis below represents the disaggregation of revenue from contracts with

customers during the periods ended 31 December 2025 and 2024:

				Operating segments		2025	Intergroup
’000	USD	2025	Air Astana	2025	FlyArystan		Eliminations	Total
Asia and Middle East			509,014		11,999		(5)	521,008
Domestic			250,763		271,538		(1,973)	520,328
Europe			234,669		20,506		(4)	255,171
CIS			80,754		30,432		(16)	111,170
Total Passenger and Cargo and mail revenue			1,075,200		334,475		(1,998)	1,407,677

				Operating segments		2024	Intergroup
’000	USD	2024	Air Astana	2024	FlyArystan		Eliminations	Total
Asia and Middle East			374,954		19,917		–	394,871
Europe			250,152		17,576		–	267,7 28
Domestic			241,222		264,970		(10)	5 0 6,182
CIS			74,750		28,816		–	103,566
Total Passenger and Cargo and mail revenue			941,078		331,279		(10)	1,272,347

Overview Other informationStrategic report Governance

140AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

8. Operating expenses

’000	USD	2025	2024
Employee and crew costs
Wages and salaries		198,508	174,886
Accommodation and allowance		24,722	19,744
Social tax		20,125	15,492
Training		5,441	5,770
Other		12,10 0	10,767
		260,896	226,659

The average number of employees during the period ended 31 December 2025 was 6,381

(31 December 2024: 5,643).

’000	USD	2025	2024
Engineering and maintenance
Maintenance, including components		96,274	76,958
Maintenance – variable lease payments		24,911	20,062
Spare parts		19,888	17,0 41
Technical inspection		3,963	3,813
		145,036	117,874

’000	USD	2025	2024
Handling, landing fees and route charges
Handling charge		6 0,167	53,532
Aero navigation		54,973	43,089
Landing fees		23,227	21,638
Other		2,636	2,226
		141,003	120,485

’000	USD	2025	2024
Passenger service
Airport charges		66,464	54,614
Catering		44,114	38,601
In-flight entertainment		7,153	5,724
Security		7,021	6,248
Other		15,833	13,490
		140,585	118,677

’000	USD	2025	2024
Selling costs
Reservation costs		28,169	24,646
Commissions		12,915	10,253
Advertising		9,159	8,546
Other		781	735
		51,024	44,180

9. Finance income and costs

’000	USD	2025	2024
Finance income
Interest income on bank deposits		21,894	21,414
Other		413	665
		22,307	22,079

’000	USD	2025	2024
Finance costs
Interest expense on lease liabilities (Note 24)		69,212	54,102
Unwinding of the discount of provision for aircraft maintenance (Note 22)		12,538	9,772
Other		655	782
		82,406	64,656

10. Income tax expense

The Group’s income tax expense for the years ended 31 December was as follows:

’000	USD	2025	2024
Current income tax
Current income tax		(45,283)	(32,391)
Adjustment recognised in the current year in relation to the current tax
of prior years		5,116	2,762
		(40,167)	(29,629)
Deferred tax expense
Deferred income tax benefit		33,599	15,719
		33,599	15,719
		(6,568)	(13,910)

Overview Other informationStrategic report Governance

141AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

10. Income tax expense continued

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts

of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

In addition, as the Company has a functional currency that is different from the currency of the country

in which it is domiciled, it recognises temporary differences on changes in exchange rates which lead

to changes in the tax basis rather than the book basis.

The tax effect on the major temporary differences that give rise to the deferred income tax assets and

liabilities as at 31 December 2025 and 2024 is presented in the table below:

’000	USD	2025	2024
Deferred tax assets
Lease liabilities		215,745	182,814
Provision for aircraft maintenance		83,142	64,061
Trade and other payables		8,326	3,508
Trade Receivables		3,314	3,583
Other		1,492	1,118
Total deferred tax assets		312,019	255,084
Deferred tax liabilities
Right of use assets		(192,595)	(167,526)
Difference in depreciable value of property, plant and equipment and intangible assets		(33,141)	(31,953)
Inventories		(3,690)	(4,428)
Prepaid expenses		(1,615)	(2,410)
Other		(53)	(164)
Total deferred tax liabilities		(231,094)	(206,481)
Net deferred tax assets		80,925	48,603

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current

tax assets against current tax liabilities and when they relate to income taxes levied by the same

taxation authority on the same taxable entity.

Movements in deferred tax assets and liabilities presented above were recorded in profit or loss

accounts, except for USD 1,380 thousand related to carried forward corporate income tax movements,

which were recognised in equity relating to the realised portion of deferred tax on cash flows hedge

and effective portion of changes in fair value. (2024: USD 2,543 thousand).

In accordance with the local tax legislation both hedged and unhedged foreign currency losses are

treated as deductible expenses for the purpose of corporate income tax calculations. If such deductible

expenses cannot be fully utilized in the year of origination the tax code permits an entity to carry

forward the accumulated tax losses for the next ten years.

The Group does not have material temporary differences associated with investments in subsidiaries

for which deferred tax liabilities have not been recognised.

As at 31 December 2025 and 2024 the Group did not have unused tax losses, tax credits or deductible

temporary differences for which deferred tax assets were not recognised.

The income tax rate in the Republic of Kazakhstan, where the Group is located, in 2025 and 2024 was

20%. The taxation charge for the year is different from that which would be obtained by applying the

statutory income tax rate to profit or loss before income tax.

Below is a reconciliation of theoretical income tax at 20% (2024: 20%) to the actual income tax

expense recorded in the Group’s consolidated statement of profit or loss:

’000	USD	2025	2024
Profit before tax		20,120	66,686
Corporate income tax, %		20%	20%
Income tax expense at applicable rate		(4,024)	(13,337)
USD forex effect		832	138
Tax effect of non-deductible expenses		(5,807)	(882)
Other changes		2,431	171
Income tax expense		(6,568)	(13,910)

Overview Other informationStrategic report Governance

142AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

11. Property, plant and equipment

							Equipment in
			Office and	Building,			transit and
		Rotable spare	training	premises and			construction in
’000	USD	parts	equipment	land	Vehicles	Aircraft	progress	Total
Cost
At 1 January 2024		116,178	23,435	48,084	2,868	1,415,345	2,497	1,608,407
Additions		46,904	3,846	9,770	4,147	345,593	4,612	414,872
Disposals		(14,967)	(594)	(1,384)	(123)	(53,548)	–	(70,616)
Other transfers		(9,532)	–	–	9,027	505	–	–
At 31 December 2024		138,583	26,687	56,470	15,919	1,707,895	7,109	1,952,663
Additions		77,53 4	2,950	7,734	1,079	285,959	7,948	383,204
Disposals		(28,236)	(703)	(853)	(338)	(26,508)	–	(56,638)
At 31 December 2025		187,881	28,934	63,351	16,660	1,967,346	15,057	2,279,229
Accumulated depreciation
At 1 January 2024		48,544	8,726	15,433	1,671	680,713	–	755,087
Charge for the year		12,637	2,551	4,966	944	167,575	–	188,673
Disposals		(1,758)	(574)	(1,345)	(81)	(50,623)	–	(54,381)
Other transfers		(3,919)	–	–	3,919	–	–	–
At 31 December 2024		55,504	10,703	19,054	6,453	797,665	–	889,379
Charge for the year		17,509	2,631	5,827	1,200	201,621	–	228,788
Disposals		(8,884)	(750)	(303)	(259)	(24,517)	–	(34,713)
At 31 December 2025		64,129	12,584	24,578	7,394	974,769	–	1,083,454
Net book value
At 31 December 2024		83,079	15,984	37,416	9,466	910,230	7,109	1,063,284
At 31 December 2025		123,752	16,350	38,773	9,266	992,577	15,057	1,195,775

In determining the Group’s geographical information, assets, which consist principally of aircraft

and ground equipment, are mainly located in the Republic of Kazakhstan. Accordingly, there is no

reasonable basis for allocating the assets to geographical segments.

In 2024 the Group made full repayments on five finance lease obligations, resulting in the transfer

of title for these aircraft in amount of USD 66,562 thousand.

As at 31 December 2025, the Group made a repayment of finance lease obligation in accordance with

the lease schedule on two Boeing 767, resulting in the transfer of title for the aircraft. The book value

of the aircraft was USD 29,389 thousand (31 December 2024: nil).

Consequently, the right-of-use assets related to these aircraft are now classified as owned property.

As at 31 December 2025 technical equipment and vehicles includes highloader and five de-icing trucks

with the net book value USD 6,182 thousand (31 December 2024: USD 9,716 thousand), which were

purchased in 2023 and 2024.

Rotable spare parts include aircraft modification costs.

Overview Other informationStrategic report Governance

143AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

11. Property, plant and equipment continued

Right of use assets, included in property, plant and equipment, are as follows:

			Building,
		Rotable	premises
’000	USD	spare parts	and land	Aircraft	Total
Cost
At 1 January 2024		22,999	21,240	1,415,345	1,459,584
Additions and modifications		23,568	8,413	345,807	377,78 8
Disposals		(574)	(1,384)	(53,544)	(55,502)
Transfer of title		–	–	(142,422)	(142,422)
At 31 December 2024		45,993	28,269	1,565,186	1,639,448
At 1 January 2025		45,993	28,269	1,565,186	1,639,448
Additions and modifications		66,377	7,249	248,14 6	321,772
Disposals		–	–	(16,585)	(16,585)
Transfer of title		–	–	(108,454)	(108,454)
At 31 December 2025		112,370	35,518	1,688,293	1,836,181
Accumulated depreciation
At 1 January 2024		13,263	11,288	680,713	705,264
Charge for the period		2,921	4,335	165,927	173,183
Disposals		(554)	(1,345)	(50,569)	(52,468)
Transfer of title		–	–	(75,860)	(75,860)
At 31 December 2024		15,630	14,278	720,211	750,119
At 1 January 2025		15,630	14,278	720,211	750,119
Charge for the period		9,276	5,145	174,007	188,428
Disposals		–	(296)	(14,108)	(14,404)
Transfer of title		–	–	(48,933)	(48,933)
At 31 December 2025		24,906	19,127	831,177	875,210
Net book value
At 31 December 2024		30,363	13,991	844,975	889,329
At 31 December 2025		87,464	16,391	857,116	960,971

The Group’s obligations under leases for Aircraft have a carrying amount of USD 1,044,367 thousand

(2024: USD 888,661 thousand) (Note 24). The total amount of Aircraft Under Lease as at 31 December

2025 includes twenty-four Airbus aircraft under leases related to the FlyArystan brand with a net book

value of USD 367,512 thousand (2024: nineteen Airbus aircraft with a net book value of USD 340,451

thousand).

As per the loan agreement with JSC Halyk Bank of Kazakhstan, the Technical Center (Hangar) in Astana,

with a carrying amount of USD 17,561 thousand, is currently pledged in favor of JSC Halyk Bank of

Kazakhstan (31 December 2024: USD 18,028 thousand).

12. Depreciation and amortisation

’000	USD	2025	2024
Depreciation of property, plant and equipment (Note 11)		228,788	188,673
Amortisation of intangible assets		952	498
Total		229,740	189,171

13. Guarantee deposits

		31 December	31 December
’000	USD	2025	2024
Non-current
Guarantee deposits for leased aircraft		41,238	36,742
Other guarantee deposits		4,284	2,356
Impairment allowances		(572)	(403)
		44,950	38,695
Current
Guarantee deposits for leased aircraft		47,017	1,269
Other guarantee deposits		3,473	1,970
		50,490	3,239
		95,440	41,934

Guarantee deposits are interest-free and are recorded at amortised cost using an average market yield

of 1.75% per annum (2024: 3.06%).

Overview Other informationStrategic report Governance

144AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

13. Guarantee deposits continued

Guarantee deposits for leased aircraft comprise security deposits required by the lease agreements

as security for future lease payments to be made by the Group. Guarantee deposits are denominated

primarily in US Dollars. The Group assesses credit risk for such deposits as low mainly because almost

all lessors are rated from “AA” to “BBB” in accordance with S&P Global Ratings credit quality grades.

For those lessors who are not credit rated by international rating agencies, management calculates

the expected credit loss based on the assumption that such lessors are rated at “CCC” by S&P Global

Ratings. The amount of deposits with such lessors as of 31 December 2025 is USD 2,395 thousand

(2024: USD 2,535 thousand).

As at 31 December 2025, the Group had guarantees and stand-by letters of credit in JSC Halyk Bank

of Kazakhstan in the amount of USD 4,609 thousand, USD 12,455 thousand in JSC Altyn Bank and USD

22,693 thousand in JSC Citibank Kazakhstan.

As at 31 December 2024, the Group had guarantees and stand-by letters of credit in JSC Halyk Bank

of Kazakhstan in the amount of USD 10,043 thousand, USD 13,430 thousand in JSC Altyn Bank and

USD 19,122 thousand in JSC Citibank Kazakhstan.

Guarantee deposits for leased aircraft and maintenance liabilities are receivable as follows:

		31 December	31 December
’000	USD	2025	2024
Within one year		47,017	1,269
After one year but not more than five years		9,838	9,367
More than five years		31,400	27,413
		88,255	38,049
Fair value adjustment		–	(38)
		88,255	38,011

The main driver for increases in guarantee deposits for leased aircraft in 2025 was the additional

20 aircraft committed for delivery in 2026-2028.

14. Inventories

		31 December	31 December
’000	USD	2025	2024
Spare parts		48,901	44,874
Fuel		23,036	8,147
Goods in transit		6,669	4,369
Crockery		3,685	4,189
Uniforms		3,387	1,420
De-icing liquid		2,829	1,790
Promotional materials		1,285	2,640
Other		4,086	4,290
		93,878	71,719
Less: cumulative write-down for obsolete and slow-moving inventories		(7,461)	(5,590)
		86,417	66,129

The movements in the cumulative write-down for obsolete and slow-moving inventories were as

follows for the years ended 31 December:

’000	USD	2025	2024
Cumulative write-down for obsolete and slow-moving inventories
at the beginning of the year		(5,590)	(5,237)
Write-down for the year		(3,058)	(1,145)
Reversal of previous write-down for the year		1,187	792
Cumulative write-down for obsolete and slow-moving inventories
at the end of the year		(7,461)	(5,590)

Overview Other informationStrategic report Governance

145AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

15. Prepayments

		31 December	31 December
’000	USD	2025	2024
Non-current
Advances for services		11,406	10,366
Prepayments for long-term assets		8,920	9,225
		20,326	19,591
Current
Advances for goods		24,985	16,489
Prepayments of leases without transfer of legal title		3,440	2,870
Advances for services		2,962	11,074
		31,387	30,433
Less: impairment allowance for prepayments		27	(143)
		31,414	30,290

As at 31 December 2025, prepayments for long-term assets include prepayments to Boeing as pre

delivery payment for three aircraft (Note 27).

The movements in the impairment allowance for the years ended 31 December 2025 and 31 December

2024:

’000	USD	2025	2024
At the beginning of the year		(143)	(184)
Accrued during the year		(98)	(5)
Written-off against previously created allowance		–	46
Reversed during the year		268	–
Impairment allowance at the end of the year		27	(143)

The impairment allowance includes advance payments made by the Group to suppliers which are

currently subject to legal claims for recovery due to the suppliers’ inability to complete the transactions.

16. Trade and other receivables

		31 December	31 December
’000	USD	2025	2024
Non-current
Other financial assets		44,534	44,357
Other receivables		1,661	630
		46,195	44,987
Less: impairment allowance		(44,534)	(44,357)
		1,661	630
Current
Trade receivables		24,075	20,054
Other receivables		2,684	1,629
		26,759	21,683
Less: impairment allowance		(762)	(882)
		25,997	20,801

In 2016, due to the significant credit quality deterioration, KazInvestBank JSC announced that its banking

license was recalled, and Delta Bank JSC experienced temporary suspension of its license for accepting

new deposits and opening new accounts on 22 May 2017. Consequently, the management reclassified

all funds held with these banks from the bank deposit line item to non-current trade and other

receivables and recognised an impairment allowance of approximately 90% of the funds as at

31 December 2016.

As at 31 December 2025 and 31 December 2024 the allowance for those banks comprises 100% of their

gross balances.

17. Other taxes prepaid

		31 December	31 December
’000	USD	2025	2024
Value-added tax recoverable		31,404	13,273
Other taxes prepaid		496	519
		31,900	13,792

Overview Other informationStrategic report Governance

146AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

18. Cash and cash equivalents

		31 December	31 December
’000	USD	2025	2024
Term deposits with an initial maturity of less than 3 months		406,208	335,904
Current accounts with foreign banks		37,591	130,083
Current accounts with local banks		28,472	13,077
Accrued interest		527	565
Cash in hand		92	77
US Treasury Bills with initial maturity of less than 3 months		–	9,008
		472,890	488,714
Impairment allowances		(14)	(12)
		472,876	488,702

19. Equity

As at 31 December 2025 share capital was comprised of 353,948,253 authorised, issued and fully paid

ordinary shares (31 December 2024: 351,887,760 ordinary shares). The holders of ordinary shares are

entitled to receive dividends as declared from time to time and are entitled to one vote per share at

meetings of the Group.

The movement of shares outstanding for the years ended 31 December 2025 and 2024 as follows:

	Shares
	outstanding
At 1 January 2024	17,000,000
Share split	289,000,000
Share issuance	50,526,315
Treasury shares purchased	(4,638,555)
At 31 December 2024	351,887,760
At 1 January 2025	351,887,760
Equity settled share-based program	4,638,555
Treasury shares purchased	(2,578,062)
At 31 December 2025	353,948,253

On 10 January 2024 existing shares were split to 306,000,000 shares and additional 60,000,000 shares

were authorised for issue.

On 15 February 2024, the Company completed its initial public offering (“IPO”), raising KZT 54,256,673

thousand (USD 121,112 thousand) through the issuance of new shares. The shares were simultaneously

listed on the Kazakhstan Stock Exchange, Astana International Exchange and London Stock Exchange.

Transaction costs directly attributable to the share issuance amounted to USD 3,100 thousand and

were recognised as a deduction from equity.

The number of authorised but not issued shares is 9,473,685 as at the date of approval of the

consolidated financial statements.

On 30 April 2024 the Company announced buyback programme to purchase ordinary shares of

the Company and global depositary receipts representing shares. The purpose of the programme

is to meet the Company’s obligations arising from its employee incentive programmes. The first

part of the programme was concluded in December 2024.

The total amount of treasury shares as at 31 December 2025 is 2,578,062 shares (31 December 2024:

4,638,555 shares). The Group repurchased its own shares on the open market in 2025 and 2024 for

a total consideration of USD 2,570 thousand and USD 8,240 thousand, respectively.

In accordance with Kazakhstan legislation the Company’s distributable reserves are limited to the

balance of retained earnings as recorded in the Company’s statutory financial statements prepared

in accordance with IFRS Accounting Standards. A distribution cannot be made when equity is negative

or if distribution would result in negative equity or the Company’s insolvency.

As at 31 December 2025 the Company had retained earnings, including the profit for the current year,

of USD 247,389 thousand (2024: USD 276,748 thousand).

On 31 May 2025, the Annual General Meeting of Shareholders approved the payment of ordinary and

special dividends in the total amount of KZT 53.7 per ordinary share and KZT 214.8 per global depositary

receipt (equal to four shares) in the amount of USD 37,306 thousand (KZT 19,100,000). During the year

ended on 31 December 2025, the Company accrued and paid out USD 37,150 thousand (KZT 19,070,084

thousand) of dividends payables.

No dividends were declared in 2024.

The calculation of basic earnings per share is based on profit or loss for the period and the weighted

average number of ordinary shares outstanding during the year ended 31 December 2025. Comparative

figures for the year ended 31 December 2024 is based on profit or loss for the period and the number

of ordinary shares outstanding. The Company has no instruments with potential dilutive effect.

Overview Other informationStrategic report Governance

147AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

19. Equity continued

’000	USD	2025	2024
Profit for the year		13,552	52,776
Shares outstanding net of treasury shares		354,271,002	348,878,155
Earnings per share – basic and diluted (USD)		0.038	0.151

Employee share programs represent potential ordinary shares but were anti dilutive in 2025 (and 2024);

accordingly, diluted EPS equals basic EPS. These instruments could dilute EPS in future periods.

Book value per share (non-IFRS measure)

In accordance with the KASE decision dated 4 October 2010, financial statements must contain information

on the book value per share (common and preferred) as of the reporting date, calculated in accordance

with the rules approved by the KASE.

	31 December	31 December
	2025	2024
Total assets	2,056,581	1,813,075
Less: intangible assets	(6,502)	(6,018)
Less: total liabilities	(1,687,267)	(1,418,545)
Net Asset Value	362,812	388,512
Number of ordinary shares	353,948,253	351,887,76 0
Book value per ordinary share (in USD)	1.025	1.104

20. Share-based payments

The Group operates share-based payment programs as part of the total remuneration package

provided to employees. These programs include share award plans in which shares are provided to

employees at no cost, subject to the Group achieving specified performance targets. All the programs

imply equity settlement.

IPO Award

The IPO Award plan is granted to key management personnel. The IPO Award plan vests after one year

from the IPO date, subject to continued service, with no further performance conditions. The fair value

of IPO Award was based on the market value of the share at the at the grant date. The programme was

completed during the first quarter of 2025.

Long-Term Incentive Plan

The Long-Term Incentive Plan (LTIP) is a recurring plan granted to the key management personnel,

following the announcement of full year results of each third IPO anniversary. The LTIP award is subject

to the achievement of performance conditions: 60% of the award is based on a range of net profit

margin targets for the 2026-2027 year-end, and 40% of the award is based on the Company’s total

shareholder return (“TSR”) performance against a peer group of other airlines. The total award amount

is determined by the fulfilment of these performance conditions. The plan terminates on the tenth

anniversary. The fair value of LTIP is based on the market value of the share at the grant date,

KZT 907.49 (USD 1.795).

The fair value of awards granted within LTIP was determined at reporting date using a binomial model

(The Cox-Ross-Rubinstein binomial model) for TSR and Monte Carlo model for EPS with the following

assumptions:

	Long-Term Incentive Plan	Long-Term Incentive Plan
Inputs into the Models	(2024-2026)	(2025-2027)
Market share price	1.795	1.795
Expected volatility	6.34%	6.27%
Expected dividends	dividend payment	dividend payment
	does not have impact	does not have impact
Risk-free interest rate (based on US Treasury bonds)	3.51%	3.47%

The expected volatility of Group’s share return was determined as the median volatility of peer

companies’ share returns. As of 31 December 2025, the weighted average performance conditions

levels for EPS and TSR of the 2024-2026 and 2025-2027 programmes are 68.46% and 70.9%

(31 December 2024: 71.8%; nil).

Employee Share Ownership Plan

The Employee Share Ownership Plan (ESOP) was granted to eligible employees who had worked for

the company for at least 1 year prior to the IPO. The ESOP would vest one year after the IPO with no

further performance conditions except for continuous service. The programme was completed during

the first quarter of 2025 and the value of distributed ordinary shares was USD 5,350 thousand.

Total expense recognised during the year ended 31 December 2025 in respect to equity-settled

share-based payment was USD 1,749 thousand before income tax of USD 350 thousand (31 December

2024: USD 7,636 thousand before income tax of USD 1,527 thousand).

Overview Other informationStrategic report Governance

148AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

20. Share-based payments continued

The fair value of share rights at reporting date granted to employees is recognised as an expense,

within “Employee and crew costs” in profit or loss, over the vesting periods (1 and 3 years).

The corresponding entry is reflected in the column “Other reserves” of the consolidated statement

of changes in equity.

21. Deferred revenue

		31 December	31 December
’000	USD	2025	2024
Unearned passenger revenue		83,850	73,805
Customer loyalty program		15,229	15,996
		99,079	89,801

The movement of deferred revenue for the year-ended 31 December 2025 and 2025 is as follows:

			31 December 2025		31 December 2024
		Unearned		Unearned
		transportation	Customer	transportation	Customer
’000	USD	revenue	Loyalty program	revenue	Loyalty program
Balance at 1 January		62,589	15,9963	72,440	11,928
Cash received from customers		–	111	–	940
Revenue recognised in the Income Statement		(941,021)	(2,854)	(1,123,937)	2,813
Operating expenses recognised in the Income
Statement		90	29	2,525	3
Loyalty points issued to customers		–	1,947	–	312
Booking of the tickets		947,917	–	1,111,561	–
Balance at 31 December		69,575	15,229	62,589	15,996

The amount of revenue recognised in the current period that was included in the opening deferred

revenue balance is USD 73,805 thousand.

Revenue recognised during the current period that was included in the opening balance of the

customer loyalty programme liability amounted to USD 1,793 thousand (2024: USD (970) thousand).

Unearned transportation revenue represents the value of tickets sold for which the transportation

service has not yet been provided. Passenger revenue is recognised when transportation is provided.

A portion of tickets sold is expected not to be used or refunded. The related revenue is recognised in

proportion to the pattern of rights exercised by passengers as flights occur, reflecting the expected

level of ticket breakage.

The Group applies the IFRS practical expedient under which it does not disclose the transaction price

allocated to remaining performance obligations for contracts with an original expected duration of

one year or less. The majority of the Group’s passenger ticket contracts fall within this exemption.

Deferred revenue attributable to the customer loyalty program refers to the Group’s Nomad Club

program.

22. Provision for aircraft maintenance

		31 December	31 December
’000	USD	2025	2024
Engines		346,098	268,911
D-Check		26,807	22,206
Landing gear		8,398	6,328
Provision for redelivery of aircraft		7,713	6,830
Auxiliary Power unit		6,420	4,288
C-Check		5,694	6,572
		401,130	315,135

The movements in the provision for aircraft maintenance were as follows for the years ended

31 December:

’000	USD	2025	2024
At 1 January		315,135	253,788
Accrued during the year (Note 8)		111,753	96,536
Used during the year		(33,730)	(45,593)
Reversed during the year (Note 8)		(4,344)	(1,237)
Recognised in property, plant and equipment		(222)	1,869
Unwinding of the discount (Note 9)		12,538	9,772
At 31 December		401,130	315,135

Overview Other informationStrategic report Governance

149AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

22. Provision for aircraft maintenance continued

The movements in provision for redelivery of aircraft were as follows for the years ended 31 December:

’000	USD	2025	2024
At 1 January		6,830	7,102
Accrued during the year (Note 8)		1,197	1,434
Used during the year		–	(468)
Reversed during the year (Note 8)		(314)	–
Recognised in property, plant and equipment		–	(1,238)
At 31 December		7,713	6,830

Under the terms of its lease agreements without transfer of title for aircraft, the Group is obliged to

carry out and pay for maintenance based on use of the aircraft and to return aircraft to the lessors in a

satisfactory condition at the end of the lease term. The maintenance cost estimates used for calculating

the provisions are stated in US Dollars.

The planned utilisation of these provisions is as follows:

		31 December	31 December
’000	USD	2025	2024
Within one year		136,817	25,269
During the second year		98,046	105,778
During the third year		99,577	60,658
After the third year		66,690	123,430
Total provision for aircraft maintenance		401,130	315,135
Less: current portion		136,817	25,269
Non-current portion		264,313	289,866

Significant judgment is involved in determining the provision for aircraft maintenance. The management

has engaged an independent specialist to assist in estimating the timing and cost of expected engine

maintenance activities. The estimate by the independent specialist is prepared based on the current

condition of aircraft, historical flight hours and cycles, expected future utilisation of the aircraft over the

remaining life of the leases without transfer of title as well as requirements for returnable condition

when the lease term is concluded. The estimates are based on the following key assumptions:

– expected utilisation rate for flight hours and cycles is based on historical data and actual usage;

– market prices are used for services and parts;

– aircraft will be operated within standard norms and conditions; and

– no provisions have been made for unscheduled maintenance.

23. Trade and other payables

		31 December	31 December
’000	USD	2025	2024
Financial liabilities
Trade payables		6 8,139	68,028
Accrued bonuses		11,198	8,283
Deposits received from agents		10,379	9,102
Due to employees		8,764	6,744
Vacation pay accrual		3,597	2,181
		102,077	94,338
Non-financial liabilities
Advances received		16,541	11,314
Taxes payable		2,846	9,832
Pension contribution		1,721	1,214
Other		226	124
		21,334	22,484
		123,411	116,822

The movement of advanced received for the year ended 31 December 2025 and 2024 is as follows:

		31 December	31 December
’000	USD	2025	2024
Balance at 1 January		11,314	8,570
Additions		250,587	655,627
Disposals		(245,360)	(652,883)
Balance 31 December		16,541	11,314

The Group’s trade and other payables are denominated in the following currencies:

		31 December	31 December
’000	USD	2025	2024
Tenge		52,156	56,425
US Dollar		41,838	48,406
Euro		7,669	6,105
British Pound		1,201	773
Other		20,547	5,113
		123,411	116,822

Overview Other informationStrategic report Governance

150AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

24. Lease liabilities

As at 31 December 2025 the Group has one Boeing 767 aircraft under fixed interest lease agreements

with transfer of title (2024: three Boeing 767 aircraft). During 2025, the Group has repaid finance lease

with the transfer of title for two Boeing 767. In 2024, the Group fully repaid liabilities related to five

Airbus A320 family aircraft with transfer of title. The Group’s borrowings and lease liabilities do not

contain financial covenants that require compliance after the reporting date as a condition for

classifying the liabilities as non-current. Certain financing agreements include cross-default clauses;

however, these do not impose separate covenant compliance requirements within twelve months

after the reporting date. Accordingly, the classification of the Group’s liabilities as current or non-current

is not affected by covenant conditions.

These requirements have been met as at 31 December 2025 and 2024.

All other aircraft leases other than described above are contracted without the right for purchase at

the end of the lease term.

The Group’s lease liabilities are effectively secured by the lessors’ rights to the underlying leased

aircraft in the event of default under the lease agreements. The Group does not obtain legal title

to these assets during the lease term.

The Group’s obligations under leases are secured by the lessors’ title to the leased assets. These assets

have a carrying value of USD 960,971 thousand (2024: USD 889,329 thousand) (Note 11). The Group’s

lease obligations are mainly denominated in US Dollars.

Certain lease agreements may also require the Group to provide security deposits or guarantees

in favour of the lessors in accordance with the respective lease terms.

Reconciliation of movements of loans and lease liabilities to cash flows arising

from financing activities

’000	USD	Loans	Lease liabilities	Total
Balance as at 1 January 2025		577	888,661	889,238
Proceeds from borrowings		5,533	–	5,533
Repayment of lease liabilities		–	(190,762)	(190,762)
Interest paid		(305)	(66,356)	(66,661)
Repayment of additional financing		(528)	–	(528)
Total changes from financing cash flows		4,700	(257,118)	(252,418)
Effect of changes in foreign exchange rates		–	525	525
Other changes
New leases and modifications		–	344,717	344,717
Non-cash settlement due to netting with guarantee deposits		–	(1,630)	(1,630)
Gain from early return of aircraft
Interest expense (Note 9)		315	69,212	69,527
Total other changes		315	412,299	412,614
Balance as at 31 December 2025		5,592	1,044,367	1,049,959

’000	USD	Loans	Lease liabilities	Total
Balance as at 1 January 2024		412	718,893	719,305
Repayment of borrowings		(38,016)	–	(38,016)
Proceeds from borrowings		37,6 00	–	37,600
Additional financing from sale and leaseback		593	–	593
Repayment of lease liabilities		–	(190,331)	(190,331)
Repayment of additional financing		(426)	–	(426)
Interest paid		(520)	(53,911)	(54,431)
Total changes from financing cash flows		(769)	(244,242)	(245,011)
Effect of changes in foreign exchange rates		417	(1,175)	(758)
Other changes
New leases and modifications		–	367,045	367,045
Non-cash settlement due to netting with guarantee deposits		–	(3,087)	(3,087)
Gain from early return of aircraft		–	(2,875)	(2,875)
Interest expense (Note 9)		517	54,102	54,619
Total other changes		517	415,185	415,702
Balance as at 31 December 2024		577	888,661	889,238

Overview Other informationStrategic report Governance

151AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

24. Lease liabilities continued

On 1 July 2015 the Group designated a portion of its US Dollar lease obligations with transfer of title as

hedges of highly probable future US Dollar revenue streams. The Group applied the cash flow hedge

accounting model to this hedging transaction in accordance with IAS 39.

In connection with the transition of the functional currency to US Dollar, this hedge ceased to be

economically effective from 31 December 2017. At 31 December 2025 a foreign currency hedge on

the lease liabilities with transfer of title was fully realized (31 December 2024: foreign currency loss

of USD 6,899 thousand before deferred income tax of USD 1,380 thousand). As a result of the change,

the hedge relationship has been discontinued so that starting from 1 January 2018 no further foreign

currency translation gains or losses are transferred from profit or loss to the hedge reserve, and the

hedge reserve recognised in equity as at 31 December 2017 shall remain in equity until the forecasted

revenue cash flows are received.

During 2025 the amount reclassified from the hedging reserve to foreign exchange loss in the

consolidated statement of comprehensive income was USD 6,899 thousand (before deferred income

tax of USD 1,380 thousand) (2024: USD 12,714 thousand before deferred income tax of USD 2,543

thousand).

25. Financial instruments

Exposure to credit, interest rate, currency and commodity price risk arises in the normal course of the

Group’s business. The Group does not hedge its exposure to such risks, other than commodity price risk

and interest rate risks arising from lease contractual obligations as discussed below.

Capital management

The Group manages its capital to ensure the Group will be able to continue as a going concern while

maximising the return to the shareholders through the optimisation of the debt and equity balance.

The Group’s current 10-year development Strategy was approved in 2017 and covers the years

2017-2026.

The capital structure of the Group consists of net debt (comprising loans and lease obligations in

Note 24) and equity of the Group (comprising issued capital, functional currency translation reserve,

reserve on hedging instruments and retained earnings as detailed in Note 19).

The Group is not subject to any externally imposed capital requirements.

The Group does not have a target gearing ratio.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting

in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy

counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk

of financial loss from defaults. Credit exposure is controlled by counterparty limits that are reviewed

and approved by the risk management committee annually.

The maximum exposure to credit risk related to financial instruments, such as cash, guarantee deposits

and accounts receivable, is calculated based on their book value.

Trade receivables consist of a large number of customers, spread across diverse industries and

geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts

receivable and, where appropriate, credit guarantee insurance cover is purchased.

As at 31 December 2025 and 31 December 2024 there was no significant concentration of credit risk

in respect of trade accounts receivable (Note 16).

The Group uses reputable banks and has established a cash investment policy which would limit the

credit risk related to bank accounts and deposits.

As a result of the increased credit risks on some of the banks, the management reconsidered its cash

management policy in 2017 and reviewed the credit ratings of the major banks in Kazakhstan and

placed its main amounts due from banks in banks with ratings of “BBB- or higher. The carrying

amounts of financial assets represent the maximum credit exposure. Impairment losses on financial

assets recognised in profit or loss were as follows:

’000	USD	Note	2025	2024
Reversal of impairment loss on trade and other receivables
and prepayments		15, 16	290	35
(Accrual)/reversal of impairment loss on guarantee deposits		13	(169)	128
Accrual of impairment loss on cash and cash equivalents		18	(2)	(2)
			119	161

Overview Other informationStrategic report Governance

152AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

25. Financial instruments continued

Trade and other receivables

		31 December	31 December
’000	USD	2025	2024
Default banks		44,534	44,357
Trade receivables		24,075	20,054
Amounts due from employees		3,888	1,976
Receivable from lessors		456	283
Total gross carrying amount		72,953	66,670
Impairment allowance		(45,295)	(45,239)
Total net carrying amount		27,658	21,431

Trade receivables

The sale of tickets is the main revenue source of the Group. The Group uses agents who sell tickets on

behalf of the Group to corporations and the general public for a certain commission that varies depending

on the geographical location and market conditions. As a result, agents amass significant amounts of

funds for tickets sold which are recorded as trade receivables by airlines. The International Air Transport

Association (hereinafter referred to as “IATA”) conducts monitoring of agents by establishing IATA

accreditation procedures designed to ensure the credit quality of agents. IATA also set Local Financial

Criteria for each market in accordance to which agents have to obtain a credit enhancement such as

bank guarantee or insurance from a financial institution of certain credit rating before they can be

accredited by IATA.

On a regular basis, the IATA notifies the airlines about the amount of debt from each agent in excess

of its guarantee or insurance protected amount. In addition, the IATA also informs about sharp and

unusual increases in sales which might signal an increase in risk. The Group then decides whether

to stop dealing with such agents until the negative factors are resolved.

The Group does not have trade receivables and contract assets for which no loss allowance is

recognised because of collateral.

The Group applies the simplified approach in measuring expected credit losses for trade receivables

recognizing lifetime expected credit losses from initial recognition.

Given the short-term nature of trade receivables and the low level of historical defaults, the loss

allowance is determined using a simplified provision matrix based on historical observed loss rates.

These rates are calculated based on long-term average default experience.

Due to the short contractual maturity of receivables, the Group does not consider the impact

of forward-looking macroeconomic factors to be significant.

At 31 December 2025, 7 debtors including IATA Billing Settlement Plans (BSPs) as collecting agencies

from the worldwide travel agencies comprised 63% of the Group’s trade and other receivables

excluding banks in default (at 31 December 2024: 5 debtors comprised 63%).

The following tables provide information about the exposure to credit risk for trade receivables

as at 31 December 2025, 31 December 2024.

			31 December 2025		31 December 2024
		Gross carrying		Gross carrying
’000	USD	amount	Loss allowance	amount	Loss allowance
Current (not past due)		23,193	(80)	13,383	(19)
1–30 days past due		390	–	6,305	–
31-90 days past due		369	–	29	–
More than 90 days past due		123	(123)	337	(337)
		24,075	(203)	20,054	(356)

Amounts due from employees

In general, certain part of the Ab-initio pilot training costs is borne by the pilot trainees but are funded

by the Group through the provision of interest free loans to participants of the program. The Group

withholds the amounts due from pilots’ salary on a monthly basis. Those pilots or cadets who leave

the Group are fully provided with respect of the credit losses.

Movements in the allowance for impairment in respect of trade and other

receivables

’000	USD	2025	2024
Balance at 1 January		45,239	46,222
Accrual of impairment allowance		792	1,646
Foreign currency difference		157	(943)
Reversal of impairment allowance		(892)	(1,686)
Balance at 31 December		45,296	45,239

Overview Other informationStrategic report Governance

153AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

25. Financial instruments continued

Guarantee Deposits

The main counterparties of the Group have a credit rating of at least “BBB-” S&P Global Ratings.

To determine whether published ratings remain up-to-date and to assess whether there has been a

significant increase in credit risk at the reporting date that has not been reflected in published ratings

the Group monitors changes in credit risk by tracking their financial stability.

12-month and lifetime probabilities of default are based on historical data supplied by S&P Global

Ratings for each credit rating. Loss given default (LGD) parameters generally reflect an assumed

recovery rate of 30% except when a security is credit-impaired, in which case the estimate of loss

is based on the instrument’s current market price and original effective interest rate.

The following table presents credit ratings of guarantee deposits each of which were classified in stage 1:

			31 December 2025			31 December 2024
		Gross		Total net	Gross		Total net
		carrying	12 month	carrying	carrying	12 month	carrying
’000	USD Credit rating	amount	ECL	amount	amount	ECL	amount
“BBB-” to “A+”		80,159	(113)	80,046	37,085	(58)	37,027
“B+” to “BB+”		4,340	(127)	4,213	2,535	(72)	2,463
Without ratings		11,513	(332)	11,181	2,717	(273)	2,444
		96,012	(572)	95,440	42,337	(403)	41,934

The loss allowance recognised on guarantee deposits relates primarily to deposits placed with

counterparties without external credit ratings and reflects the higher probability of default associated

with such counterparties.

The Group did not have any guarantee deposits that were either past due or impaired.

’000	USD	2025	2024
Balance at 1 January		(403)	(531)
Net re-measurement of loss allowance		(169)	128
Balance at 31 December		(572)	(403)

Cash and cash equivalents

The Group held cash and cash equivalents of USD 472,876 thousand at 31 December 2025

(2024: USD 488,702 thousand). The cash and cash equivalents are held with government, bank and

financial institution counterparties, most of which are rated “BBB” to “A+”, based on S&P Global ratings.

Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and

reflects the short maturities of the exposures. The Group believes that its cash and cash equivalents

have low credit risk based on the external credit ratings of the counterparties.

The Group uses a similar approach for assessment of ECLs for cash and cash equivalents to those used

for bank and guarantee deposits. The following table presents an analysis of the credit quality of cash

and cash equivalents measured at amortised cost:

			31 December 2025			31 December 2024
		Gross			Gross
		carrying	12 month	Carrying	carrying	12 month	Carrying
’000	USD Credit rating	amount	ECL	amount	amount	ECL	amount
“BBB-” to “A+”		472,483	(14)	472,469	474,122	(12)	474,110
“B+” to “BB+”		407	–	407	14,592	–	14,592
		472,890	(14)	472,876	488,714	(12)	488,702

Interest rate risk

The Group is not exposed to significant interest rate risk because the Group mainly borrows funds at

fixed interest rates.

Foreign currency risk

The Group is exposed to foreign currency risk on sales and purchases that are denominated in

currencies other than the US Dollar. The currencies giving rise to this risk are primarily Tenge and Euro.

For amounts of liabilities denominated in foreign currency refer to Note 18. The management believes

that it has taken appropriate measures to support the sustainability of the Group’s business under the

current circumstances.

Overview Other informationStrategic report Governance

154AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

25. Financial instruments continued

Foreign currency sensitivity analysis

The Group is mainly exposed to the risk of change of exchange rates of the US Dollar against Tenge

and Euro.

The carrying value of the Group’s monetary assets and liabilities in foreign currency as at the reporting

date has been provided below. This disclosure excludes assets and liabilities denominated in other

currencies as they do not have significant effect on the consolidated financial statements of the Group.

			31 December 2025		31 December 2024
’000	USD	Notes	Tenge	Euro	Tenge	Euro
Assets
Other taxes prepaid		17	31,900	–	13,792	–
Trade and other receivables		16	12,503	1,256	14,463	1,15 6
Income tax prepaid			7,105	–	12,999	–
Cash and cash equivalents		18	25,557	2,634	12,879	5,978
Guarantee deposits			540	333	323	295
Total			77,605	4,223	54,456	7,429
Liabilities
Trade and other payables		23	52,156	7,669	63,156	6,105
Lease liabilities			11,989	–	7,897	–
Total			64,145	7,669	71,053	6,105
Net position			13,460	(3,446)	(16,597)	1,324
In 2025 the following table details the Group’s sensitivity of weakening of the US Dollar against the

Tenge by 10% (2024:10%) and Euro by 10% (2024: 10%) and strengthening of the US Dollar against

the Tenge by 10% (2024: 10%) and Euro by 10% (2024: 10%).

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and

adjusts their translation at the period end for abovementioned sensitivity ratios.

The sensitivity analysis includes trade and other receivables, cash and cash equivalents, bank deposits,

guarantee deposits, trade and other payables, loans and lease liabilities.

A negative number below indicates a decrease in Profit or Loss and positive number would be an

opposite impact on the Profit or Loss:

		Weakening of US Dollar			Strengthening of US Dollar
’000	USD	Tenge	Euro	Tenge	Euro
31 December 2025		10%	10%	10%	10%
(Loss)/profit		(1,077)	276	1,077	(276)

		Weakening of US Dollar			Strengthening of US Dollar
’000	USD	Tenge	Euro	Tenge	Euro
31 December 2024		10%	10%	10%	10%
(Loss)/profit		(1,328)	106	1,328	(106)

The Group limits the currency risk by monitoring changes in exchange rates of foreign currencies in

which trade and other receivables, cash and cash equivalents, bank deposits, guarantee deposits,

trade and other payables and loans and lease liabilities are denominated.

Fuel price risk

The Group is exposed to fuel price risk. In order to mitigate such risk, under the Group’s fuel price risk

management strategy Asian Call Option contracts are entered into. The Group strategy is to hedge a

proportion of fuel consumption up to two years within the approved hedging profile.

The following table demonstrates the sensitivity of Asian Call Option contracts to a reasonable possible

change in fuel prices, based on current market volatility, with all other variables held constant, on the

result before tax and equity. The sensitivity analysis has been performed on fuel derivatives at the

reporting date only and is not reflective of the impact had the sensitivity rates been applied through

the duration of the years to 31 December 2025 and 2024:

’000	USD	31 December 2025		31 December 2024
Increase/(decrease) in fuel price per cent		10%	(10%)	10%	(10%)
Effect on equity		437	(92)	640	(158)

Effect of fuel price change on profit-before tax is estimated to be zero.

Overview Other informationStrategic report Governance

155AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

25. Financial instruments continued

Climate-related considerations

The Group monitors developments in climate-related regulation and industry initiatives aimed at

reducing greenhouse gas emissions in the aviation sector. The global aviation industry has committed

to achieving net-zero carbon emissions by 2050, which is also reflected in the Group’s long-term

sustainability ambitions. Alongside the assessment of climate related physical risks, the Group is

also assessing measures to support the transition of the aviation sector, including the potential use

of sustainable aviation fuel over time. Management has considered whether climate-related matters

could affect significant accounting estimates applied in the preparation of the consolidated financial

statements and concluded that, as at the reporting date, no material adjustments to the carrying

amounts of the Group’s assets and liabilities were required.

Liquidity risk management

Liquidity risk is the risk that a Group will encounter difficulty in meeting the obligations associated

with its liabilities that are settled by delivering cash or another financial asset. The Group’s approach

to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to

meet its liabilities when due, under both normal and stressed conditions, without incurring

unacceptable losses or risking damage to the Group’s reputation.

Ultimate responsibility for liquidity risk management rests with the Group’s Management. The Group

manages liquidity risk by maintaining adequate reserves, continuously monitoring forecast and actual

cash flows and matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial

liabilities and assets. The tables have been drawn up based on the undiscounted cash flows of financial

liabilities based on the earliest date on which the Group can be required to pay.

The maturity analysis of lease liabilities presented below reflects the Group’s contractual undiscounted

lease payments. The total undiscounted lease payments differ from the carrying amount of lease

liabilities recognised in the statement of financial position because lease liabilities are measured

at the present value of future lease payments using the Group’s incremental borrowing rate.

			3 months
’000	USD	Up to 3 months	to 1 year	1-5 years	Over 5 years	Total
31 December 2025
Financial assets
Trade and other receivables		23,862	2,13 4	1,662	–	27,658
Guarantee deposits		1,936	48,551	11,214	34,311	96,012
Cash and cash equivalents		472,876	–	–	–	472,876
Financial liabilities
Non-interest bearing
Trade and other payables		82,447	21,577	–	–	104,024
Fixed rate
Loans		134	475	3,889	1,094	5,592
Lease liabilities		111,071	334,009	874,633	178,879	1,498,592

			3 months
’000	USD	Up to 3 months	to 1 year	1-5 years	Over 5 years	Total
31 December 2024
Financial assets
Trade and other receivables		19,377	1,424	630	–	21,431
Guarantee deposits		616	2,623	10,536	28,197	41,972
Cash and cash equivalents		488,702	–	–	–	488,702
Financial liabilities
Non-interest bearing
Trade and other payables		7 7,064	9,102	–	–	86,16 6
Fixed rate
Loans		24	72	478	183	757
Lease liabilities		58,312	168,276	675,020	170,589	1,072,197

Overview Other informationStrategic report Governance

156AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

25. Financial instruments continued

Fair values

Cash and cash equivalents

The carrying value of cash and cash equivalents approximates their fair value as they either have

short- term maturity or are interest-bearing and hence are not discounted.

Fuel call options

The Group uses options to hedge the risk of jet fuel price movement. The Group uses standard market

instruments for fuel hedging purposes, such as “call option” (where the premium is paid in advance

bу the Group to cover the risk of increases of commodity price above the predetermined level).

Since there is no possibility to hedge the risk of changes in jet fuel prices purchased from call option

suppliers, the Group hedges only the amount of fuel purchased outside the Republic of Kazakhstan

signing a general agreement with several international banks on the conclusion of derivative

transactions. The management of the Group determines the volume of jet fuel that will bе hedged

before executing the deal. Hedging is carried out according to the Fuel hedging policy approved bу

the directors and shareholders of the Group. The Group determines the economic relationship between

the hedge instrument and the hedge item by analyzing the historic price movement of aviation fuel

and Brent by performing a regression analysis. The resulting Beta coefficient is assessed for statistical

significance and used as a hedge ratio.

The hedge ineffectiveness comes from the probability that due to constantly changing economic

conditions the highly probable transaction, purchase of aviation fuel, might not occur.

The fair values (FV) of financial assets and financial liabilities of the Group are determined in accordance

with generally accepted pricing models based on discounted cash flow analysis using prices from

observable current market transactions and dealer quotes for similar instruments.

The Group applied discounted expected future cash flows method under income approach to reach

fair value of the instruments. The cash-flows represent payouts from the counterparties to the Group

in case of a floating price exceeding a strike price.

To estimate payouts the Group applied Monte Carlo method based on Geometric Brownian Motion

model. The following key inputs parameters were used by the Group in their model:

– Spot: Brent Crude Oil futures last price as at 31 December 2025 and 31 December 2024;

– Growth rate: futures curve for Crude Oil, Brent (ICE) according to Bloomberg;

– Volatility: Implied volatility for Brent Crude oil according to Bloomberg; and

These hedge items are highly probable future transactions planned for the first half of 2026.

International fuel uplift volumes partially hedged for the first half of 2026. The hedge instrument is

the crude oil call option with the strike prices of USD 70 and USD 65 per barrel. Based on the hedge

ratio of 1.439, the Group hedged 191,965 barrels of fuel as of 31 December 2025 (31 December 2024:

183,912 barrels). Due to the short-term maturity the Group does not expect significant changes in the

fair value of the instruments.

Level 2 fair values for financial assets and liabilities at fair value through profit or loss have been

generally derived using the fair value valuation reports provided bу the banks which participate in

hedging transactions. The most significant input into this valuation approach are time left to maturity

of the deal, forward and spot prices of crude oil.

The Group has no other financial and non-financial instruments that are measured subsequent to initial

recognition at fair value, grouped into Levels 1 to 3 of fair value hierarchy.

Guarantee Deposits

Guarantee Deposits are recognised at amortised cost. The management believes that their carrying

amounts approximate their fair value.

Trade and other receivables and payables

For receivables and payables with a maturity of less than six months fair value is not materially

different from the carrying amount because the effect of the time value of money is not material.

Ab- initio receivables are recorded at fair value at initial recognition and subsequently measured at

amortised cost. The management believes that their carrying amounts approximate their fair value.

Loans

Loans are recognised at amortised cost. The management believes that their carrying amounts

approximate their fair values.

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157AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

26. Measurement of fair values

A number of the Group’s accounting policies and disclosures require the measurement of fair values

for financial assets and liabilities.

The Group has an established control framework with respect to the measurement of fair values.

This includes a finance department that has overall responsibility for overseeing all significant fair

value measurements, including Level 3 fair values.

The finance department regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values,

then the valuation team assesses the evidence obtained from the third parties to support the conclusion

that such valuations meet the requirements of IFRS Accounting Standards, including the level in the fair

value hierarchy in which such valuations should be classified.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels

of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level

of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting

period during which the change has occurred.

As at 31 December 2025 and 2024 all of the Group’s assets were measured at amortised cost except

for fuel call options.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far

as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs

used in the valuation techniques as follows:

– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset

or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable

inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different

levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the

same level of the fair value hierarchy as the lowest level input that is significant to the entire

measurement.

Further information about the assumptions made in measuring fair values is included in Note 25.

27. Commitments and contingencies

Lease commitments

Aircraft

Aircraft leases are for terms of between 4 to 12 years. All lease contracts contain market review clauses

in the event that the parties agree to renew the leases. Certain lease agreements with transfer of title

include an option to purchase the aircraft at the end of the lease term. Other aircraft lease agreements

do not include a purchase option at expiry of the lease period.

The fixed payments and in-substance fixed payments are denominated and settled in US Dollars.

This currency is routinely used in international commerce for aircraft leases.

The following table presents commitments for aircraft lease agreements that have been signed but

for which the lease term has not yet commenced. Accordingly, the related lease liabilities have not

yet been recognised in the statement of financial position.

The Group has commitments for aircraft leases not yet commenced, with deliveries expected from

2026 onwards.

		31 December	31 December
’000	USD	2025	2024
Within one year		15,011	29,084
After one year but not more than five years		669,932	772,349
More than five years		843,828	941,398
		1,528,771	1,742,831

During 2024 the Group has placed the orders and signed respective lease agreements for 40 aircraft

– Boeing 787, Airbus 321LR, A321Neo, A320Neo, A320ceo and A320neo in low-cost carrier configuration

with deliveries in period from 2023 to 2028.

During 2025, two Airbus A320neo, two Airbus A320ceo, one Airbus A321neo, and three additional

Airbus A320neo in LCC configuration were delivered, while three Embraer E190-E2 were redelivered.

In addition, during the year, two lease agreements were signed for the future delivery of two Airbus

A321neo LR.

Lease extensions were also executed in 2025 for two Airbus A321neo, one Airbus A320neo, and one

Airbus A320ceo.

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158AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

27. Commitments and contingencies continued

Insurance

Aviation insurance

Air Astana puts substantial attention in contracting insurance coverage for its aircraft operations and

hence hedges aviation risks with major international insurance markets (e.g. Lloyd’s) with a high rating

of financial stability through the services of an international reputable broker. Types of insurance

coverage are stated below:

– Aviation Hull, Total Loss Only and Spares All risks and Airline Liability including Passenger Liability;

– Aircraft Hull and Spare Engine Deductible;

– Aviation Hull and Spares “War and Allied Perils”;

– Aviation War, Hi-Jacking and Other Perils Excess Liability.

Non – Aviation Insurance

Apart from aviation insurance coverage the Group constantly purchases non-aviation insurance policies

to reduce the financial risk of damage to property and general liability, as well as covering employees

from accidents and medical expenses, as follows:

– Medical insurance of employees;

– Directors, Officers and Corporate liability insurance;

– Property insurance;

– Comprehensive vehicle insurance;

– Compulsory insurance of employee from accidents during execution of labour (service) duties;

– Pilot’s loss of license insurance;

– Insurance of goods at warehouse;

– Cyber insurance.

Taxation contingencies

The taxation system in Kazakhstan is relatively new and is characterized by frequent changes in

legislation, official pronouncements and court decisions, which are often unclear, contradictory and

subject to varying interpretation by different tax authorities, including opinions with respect to IFRS

Accounting Standards treatment of revenues, expenses and other items in the consolidated financial

statements. Taxes are subject to review and investigation by various levels of authorities, which have

the authority to impose severe fines and interest charges. A tax year generally remains open for review

by the tax authorities for five subsequent calendar years; however, under certain circumstances a tax

year may remain open longer.

The management believes that it has provided adequately for tax liabilities based on its interpretations

of applicable tax legislation, official pronouncements and court decisions. However, the interpretations

of the relevant authorities could differ and the effect on these consolidated financial statements, if the

authorities were successful in enforcing their interpretations, could be significant.

The functional currency of the Company is US Dollar, as it best reflects the economic substance of

the underlying events and circumstances of the Company. The Tax Code of the Republic of Kazakhstan

does not contain provisions which would regulate questions arising from the application of functional

currency in accounting books different from tenge. However, the Tax Code requires all taxpayers in

Kazakhstan to maintain their tax records and to settle tax liabilities in tenge. Therefore, the Group also

maintains records and conducts calculations in tenge for the purpose of taxation and settlement of tax

liabilities and makes certain estimates in this respect. The management believes that such approach

is the most appropriate under the current legislation.

Operating Environment

The future economic direction of Kazakhstan is heavily influenced by the fiscal and monetary policies

adopted by the government, together with developments in the legal, regulatory, and political

environment. As Kazakhstan produces and exports large volumes of oil and gas, its economy is

particularly sensitive to the price of oil and gas on the world market.

Depreciation of the Kazakhstan Tenge, volatility in the global price of oil and geopolitical conflicts

have also increased the level of uncertainty in the business environment. The consolidated financial

statements reflect the management’s assessment of the impact of the Kazakhstan business

environment on the operations and the financial position of the Group. The future business

environment may differ from the management’s assessment.

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159AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

28. Related party transactions

Management remuneration

Key management that have authority and responsibility regarding management, control and planning

of the Group’s activity received the following remuneration during the year, which is included in

employee costs (Note 8):

’000	USD	2025	2024
Wages and salaries		11,263	7, 599
Share-based payment		1,423	1,571
Social tax		1,176	865
Termination benefits		27	318
		13,889	10,353

Transactions with related parties

For the purposes of these consolidated financial statements, related parties include:

– JSC “National Welfare Fund Samruk-Kazyna”, which holds 41% of the Group’s shares as at

31 December 2025 and exercises significant influence over the Group;

– entities controlled or significantly influenced by the Government of the Republic of Kazakhstan

(government-related entities);

– key management personnel of the Group and their close family members; and

– entities controlled or jointly controlled by such persons.

The Government of the Republic of Kazakhstan is the ultimate controlling party of JSC “National Welfare

Fund Samruk-Kazyna”.

Accordingly, entities controlled or significantly influenced by the Government of the Republic of

Kazakhstan are considered government-related entities for the purposes of IAS 24.

Until 18 December 2025, BAE Systems Kazakhstan Limited held 16.95% of the Group’s shares and was

considered a related party due to its significant influence.

On 18 December 2025, BAE Systems Kazakhstan Limited disposed of 10.1% of its shareholding, reducing

its ownership interest to 6.85%.

Following this transaction, BAE Systems Kazakhstan Limited no longer has significant influence over the

Group and therefore ceased to be a related party from that date.

Transactions with BAE Systems Kazakhstan Limited up to 18 December 2025 are disclosed as related

party transactions. Among shareholders and their subsidiaries, JSC NC KazMunayGas and its subsidiaries

represent the Group’s only individually significant supplier, primarily in respect of fuel purchases.

The following table represents the related party transactions:

		2025		2024
’000	USD	Transaction	Outstanding	Transaction	Outstanding
Services received		value	balance	value	balance
State-owned companies		64,919	(114)	107,654	2,173
		64,919	(114)	107,654	2,173
JSC NC KazMunayGas and its subsidiaries		2 27,4 0 8	(4,835)	74,615	(4,467)
Other shareholders and their subsidiaries		629	(38)	670	(12)
		292,956	(4,987)	182,939	(2,306)

Services from related parties are represented by airport, navigation, meteorological forecasting services

and fuel.

Among the shareholders and their subsidiaries, JSC NC Kazpost and its subsidiaries are the only

significant client of the Group.

		2025			2024
’000	USD	Transaction	Outstanding	Transaction	Outstanding
Services provided by the Group		value	balance	value	balance
JSC NC Kazpost and its subsidiaries		940	196	1,168	186
Other shareholders and their subsidiaries		329	9	167	3
		1,269	205	1,335	186

All outstanding balances with related parties are to be settled in cash within six months of the

reporting date. None of the balances are secured.

Transactions with government-related entities

The Group transacts with a number of entities that are controlled by the Government of Kazakhstan.

The Group applies the exemption in IAS 24 Related Party Disclosures that allows to present reduced

related party disclosures regarding transactions with government-related entities.

These transactions are conducted in the ordinary course of the Group’s business on terms comparable

to those with other entities that are not government-related.

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160AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

29. Fees for the services received from the independent auditors

The fees for the services received from the independent auditors including the statutory audit and

other non-audit fees as per the agreements for the year ended 31 December:

’000	USD	2025	2024
Audit fee		519	547
Other non-audit fees		54	36
		573	583

30. Subsequent events

On January 15 2026, the General Meeting of Shareholders approved the agreement with the Boeing

Company for the acquisition of five (firm) Boeing 787-9 type of aircraft and secured five option rights

and five purchase rights for Boeing 787-9 with deliveries scheduled for 2032-2035.

On February 9 2026, the General Meeting of Shareholders approved the agreement with Airbus S.A.S

for the acquisition of five (firm) Airbus A320N type aircraft, twenty (firm) A321NX aircraft and secured

purchase rights for twenty-five additional A320neo aircraft family with deliveries scheduled for

2031-2034. As at December 31 2025, the Group paid USD 43,041 thousand as a secured deposit

recognised as current guarantee deposits for leased aircraft in Note 13.

On February 4 2026, Gonçalo Pires was appointed as the Chief Financial Officer (CFO), effective 1 March

2026 replacing the current CFO, Ibrahim Canliel who will serve as the Chief Executive Officer (CEO),

effective 1 April 2026.

On 28 February 2026, the United States and Israel carried out military strikes against the Islamic

Republic of Iran, which resulted in increased geopolitical risks and restrictions on flights through the

airspace of several Middle Eastern countries, including Bahrain, Qatar, Kuwait, Iraq, Iran, the United

Arab Emirates (“UAE”) and Syria.

As a result, the Group diverted all flights on 28 February 2026 and temporarily suspended scheduled

flights to Dubai (UAE), Medina and Jeddah (Saudi Arabia), and Doha (Qatar) until such time that the

relevant airspace is reopened and the Group considers it safe to resume normal operations.

As at the date of approval of these consolidated financial statements, the Group operated limited

repatriation flights to Jeddah and Medina in western Saudi Arabia and Muscat (Oman).

In view of the surge in demand on routes between Kazakhstan and Asia, Central Asia and the Caucasus

and Asia, and Asia and Europe, the Group reallocated part of its available aircraft capacity from the

suspended Gulf routes to Asian routes.

As a result of the above developments, the Group estimates a neutral impact on profit in March.

The Group continues to monitor developments in the affected regions and assess the potential impact

on its operations.

31. Approval of the consolidated financial statements

The consolidated financial statements were approved by the management of the Group and authorised

for issue on 13 March 2026.

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161AIR ASTANA GROUP INTEGRATED REPORT 2025

Financial statements

163 Supplementary ESG data

167 GRI content index

173 SASB index

174 Independent practitioner’s assurance report

177 Glossary

Digital transformation is pivotal and

amajor investment in next-generation

systems for enhancing our operational

performance, crew productivity

andcustomer experience.”

Piyush Taori

CHIEF DIGITAL AND

INFORMATIONOFFICER

Other information

Overview Strategic report Governance Financial statements

162AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

SUPPLEMENTARY SUSTAINABILITY DATA

FOR THE YEAR ENDED 31 DECEMBER 2025

Environment

Table 1: Emissions

2025 2024 2023

Total GHG emissions within the Group

Scope 1 GHG emissions (tonnes of CO

e) 1,414,911 1,252,773 1,115,142

Scope 2 GHG emissions (tonnes of CO

e) 5,169 5,120 5,660

Scope 3 GHG emissions (tonnes of CO

e) 368,936 352,399 –

Total Scope 1 and 2 GHG Emissions (tonnes CO

e) 1,420,080 1,257,893 1,120,802

Total Scope 1, 2, and 3 GHG Emissions (tonnes CO

e) 1,789,016 1,610,292 –

GHG Emissions Intensity

emissions (Scope 1) intensity (tonnes CO

per RPK) 0.078

0.078 0.076

emissions (Scope 1) intensity (tonnes CO

per ASK) 0.064 0.065 0.063

Operational Activity Indicators

Company-specific metric (seat kilometres)

22,032,718 19,322,854 17,689,651

Company-specific metric (revenue kilometres)

18,225,196 16,128,485 14,646,227

Scope 3 Emissions (tonnes of CO

Category 1: Purchased goods and services 59,424.22 74,477 –

Category 2: Capital goods 6,341 10,881 –

Category 3: Fuel and energy related activities 294,719 259,553 –

Category 4: Upstream transportation and distribution 1,070 1,121 –

Category 5: Waste generated in operations 1,952 2,023 –

Category 6: Business travel 710 488 –

Category 7: Employee commuting 2,118 1,919 –

Category 8: Upstream leased assets 2,601 1,938 –

Total Other Indirect (Scope 3) GHG Emissions (tonnes of CO

e) 368,936 352,399 –

Direct emissions of NOx, SOx and other significant air emissions

Sulphur oxides, tonnes

5.15 4.39 3.96

Nitrogen oxides, tonnes

11.6 10.58 9.68

Carbon oxides, tonnes

15.05 13.03 11.63

Other substances, tonnes

3.44 2.96 3.61

Particulate matter

0.57 0.81 0.44

Table 2: Energy

2025 2024 2023

Energy consumption (Group)

Electricity (GJ) 16,164

15,473 14,958

Heating (GJ)

6,525 6,803 28,615

Energy intensity (thousand GJ) 2,698 2,625 2,367

Total fuel consumed (thousand GJ)

19,432 17,159 15,358

Total energy consumption within Group (thousand GJ)

19,455

17,181 15,386

Alternative fuel consumed (%) 0% 0% 0%

Sustainable fuel consumed (%) 0% 0% 0%

Table 3: Waste

2025 2024 2023

Waste disposal in Group’s sites (Almaty, Astana, Aktau)

Hazardous waste

64.02 17.86 11.79

Incineration (with energy recovery) – – –

Incineration (without energy recovery)

42.54 5.34 –

Landfilling

21.48 12.52 –

Other disposal operations – – –

Non-hazardous waste, tonnes

2,832.08 2,924.69 2,984.23

Incineration (with energy recovery) – – –

Incineration (without energy recovery) – – –

Landfilling

2,790.06 2 , 8 87.85 2,944.78

Other disposal operations

42.02 36.84 39.45

Total, tonnes

2,896.10 2,942.55 2,996.02

Were subject to limited assurance by PwC.

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163AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

SUPPLEMENTARY SUSTAINABILITY DATA CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

Table 4: Waste by breakdown

2025 2024 2023

1. Oil and fuel waste (used oils and fuels) 39.75 4.22 0.98

2. Hazardous aqueous liquid waste 0.24 0.24 0.23

3. Contaminated absorbents, rags and filters 17.34 4.61 1.33

4. Paint/solvent waste and contaminated packaging 5.74 5.25 2.06

5. Expired chemicals and other hazardous products 0.81 0.81 3.25

6. Mercury-containing waste (fluorescent lamps) 0.14 2.73 –

7. Batteries and accumulators 0.24 0.26 0.98

8. End-of-life tires (rubber waste) 0.60 1.60 2.97

9. Metal waste 2.52 1.82 0.399

10. Paper and cardboard waste 37.27 32.92 36.00

11. Plastic waste 1.63 0.24 2.84

12. Mixed municipal solid waste 2,787.13 2,887.85 2,945

13. Other waste not otherwise specified 2.69 – –

Total, tonnes

2,896.10 2,942.55 2,996.02

2025 2024 2023

Hazardous waste diverted from disposal

Third-party recycling/recovery, tonnes 42.54 – –

Non-hazardous waste diverted from disposal

Recycling (batteries, tires, paper, PET) 44.95 – –

Total expenses for environmental protection (USD)

Environmental protection 128,238 142,734 129,178

Negative impact on the environment 260,564 2,16 6 379,925

Hazardous waste disposal 18,112 11,981 1,951

Transfer of household waste 81,451 90,011 86,831

Health and safety

Table 5: Occupational Health and Safety

2025 2024 2023

Reported Accidents

Number of incidents 47

47 41

Recordable work-related injuries

29 30 29

Number of employees

7,211 6,546 6,499

Total accident rate (TAR) 4.02

4.58 4.46

Lost time injury frequency rate (LTIFR)

2.86 3.27 3.24

Fatal injury rate (FIFR)

–

– –

Number of hours worked

10,140,511 9,138, 297 8,950,617

Accident severity ratio 34.14 39.39 40.17

High-consequence work-related injuries (excluding fatalities)

–

– –

Occupational morbidity ratio – – –

OHS reports received 259 243 185

Fire safety

Fire evacuation drills conducted 14 17 18

Employees trained in fire safety 157 141 165

Were subject to limited assurance by PwC.

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164AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

Our people: Employee profile

Table 6: Employees by gender and by age group

2025 2024 2023

Total workforce 7,211 6,546 6,499

Employees, by gender

Female

4,291 3,882 3,884

Male

2,920 2,664 2,615

Employees, by age group

<30 y.o. 3,026 2,568 2,669

30-50 y.o. 3,642 3,455 3,257

>50 y.o. 543 523 573

Table 7: New hires

2025 2024 2023

New hires (Total)

1,556

818 1,077

New hires, by gender

Female

922 421 543

Male

634 397 534

New hires, by age group

<30 y.o.

1,176 582 742

30-50 y.o.

332 215 306

>50 y.o.

48 21 29

New hires, by region

Almaty

1,054 596 725

Other Kazakhstan cities

495 216 344

International stations

7 6 8

Rate of hire

22% 12% 17%

Table 8: Turnover

2025 2024 2023

Turnover (Total)

887 806 777

Turnover, by gender

Female

508 449 442

Male

379 357 335

Turnover, by age group

<30 y.o.

444

413 407

30-50 y.o.

370

326 311

>50 y.o.

67 59

Turnover, by region

Almaty

611

529 459

Other Kazakhstan cities

274

271 296

International stations

6 22

Turnover rate from the total number of employees

The turnover rate

12.30% 12.31% 11.96%

Table 9: Parental Leave Statistics

2025 2024 2023

Total number of employees who were entitled

toparentalleave

Female

4,291 3,882 3,884

Male

2,920 2,664 2,615

Total

7,211 6,546 6,499

Employees who took parental leave, by Gender

Female

179

241 214

Male

16 15 17

Total

195 256 231

Employees who returned to work in the reporting period

afterparental leave ended, by Gender 

Female

174 187 171

Male

8 20 15

Total

182 207 186

SUPPLEMENTARY SUSTAINABILITY DATA CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

Were subject to limited assurance by PwC.

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165AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

SUPPLEMENTARY SUSTAINABILITY DATA CONTINUED

FOR THE YEAR ENDED 31 DECEMBER 2025

2025 2024 2023

Return to work rate of employees who took parental leave,

byGender

Female

67% 75% 67%

Male

36% 67% 68%

Total

65% 74% 67%

Employees who returned to work after parental leave ended

and who werestillemployed 12 months after returning to

work, by Gender

Female

133 156 156

Male

14 14 14

Total

147 170 233

Retention rate

Female

71% 91% 69%

Male

70% 93% 67%

Total

71% 91% 69%

Table 10: Training and development of employees

2025 2024 2023

Total number of hours 448,939

330,124

Total average of training hours per employee

62.26 50.43 6.32

Average Training Hours by Gender

Female

56.46 37.34 –

Male

70.78 69.5 –

Average Training Hours by Category

Operational

69.05 57.96 8.5

Administrative

18.61 14.57 4.9

Governance

Table 11: Ethics and compliance within the Group

2025 2024 2023

Total employees completed Code of Conduct training,

bynumber and region 913 488 3,050

Kazakhstan 903 475 2,995

International locations 10 13 55

Table 12: Operations assessed for risks related to corruption

2025 2024 2023

Total number of structural units/business processes assessed

forrisks associated with corruption 2 2 2

Total number of structural units/business processes for

whichacorruption risk assessment was carried out

1 2 2

Percentage of structural units/business processes assessed

forrisks associated with corruption.

50% 100% 100%

Table 13: Confirmed incidents of corruption and actions taken

2025 2024 2023

Total number and nature of confirmed incidents of corruption – 2 4

Total number of confirmed incidents in which employees were

dismissed or disciplined for corruption.

– 2 4

Total number of confirmed incidents when contracts with business

partners were terminated or not renewed due to violations

related to corruption.

– – –

Total number of public legal cases regarding corruption brought

against the organization or its employees during the reporting period

– – –

Table 14: Customer Privacy

2025 2024 2023

Substantiated complaints concerning breaches of customer privacy 0 0 0

Total number of identified leaks, thefts, or losses of customerdata

0 0 0

Table 15: Non-discrimination

2025 2024 2023

Total number of incidents of discrimination – – –-

Table 16: Procurement practices

2025 2024 2023

Purchases from local suppliers 31% 32% 31%

Were subject to limited assurance by PwC.

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166AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

GRI CONTENT INDEX

The Air Astana Group has reported in accordance with the GRI Standards for the period from 1 January 2025 to 31 December 2025.

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

GRI 2: General Disclosures 2021

2-1 Organisational details

– Name of the organisation Cover of the Annual Report 2025

– Ownership and legal form Notes to the consolidated financial statements, page 121

– Location of headquarters Almaty, Kazakhstan

– Location of operations At a glance, page 4

2-2 Entities included in the organisation’s sustainability reporting Air Astana Group

2-3 Reporting period, frequency and contact point

– Specify the reporting period for, and the frequency of,

itssustainabilityreporting

The reporting period is 1 January 2025 – 31 December 2025. The reporting

occurs once peryear.

– Specify the reporting period for its financial reporting and, if it does not

align with the period for its sustainability reporting, explain the reason

for this

The reporting period is 1 January 2025 – 31 December 2025. This is aligned

withthe period for sustainability reporting.

– Report the publication date of the report or reported information April 2026 (Annual)

– Specify the contact point for questions about the report or

reportedinformation

Contact points are: Corporate.governance@airastana.com;

Sustainability.issues@airastana.com

2-4 Restatements of information

a. Report restatements of information made from previous reporting

periods and explain:

i. the reasons for the restatements;

ii. the effect of the restatements.

N/A - no restatements of sustainability data in 2025

2-5 External assurance Independent practitioner’s assurance report, page 174

2-6 Activities, value chain and other business relationships Pages 14, 40

2-7 Employees Page 57

2-8 Workers who are not employees Page 57

2-9 Governance structure and composition Page 84

2-10 Nomination and selection of the highest governance body Page 100

2-11 Chair of the highest governance body Page 84

2-12 Role of the highest governance body in overseeing the

management of impacts Page 90

2-13 Delegation of responsibility for managing impacts Page 91

2-14 Role of the highest governance body in sustainability reporting Page 41

2-15 Conflicts of interest Page 45

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167AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

GRI CONTENT INDEX CONTINUED

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

2-16 Communication of critical concerns Page 91

2-17 Collective knowledge of the highest governance body Page 99

2-18 Evaluation of the performance of the highest governance body Page 91

2-19 Remuneration policies Page 101

2-20 Process to determine remuneration Page 101

2-21 Annual total compensation ratio Page 101

2-22 Statement on sustainable development strategy Page 40

2-23 Policy commitments Page 43

2-24 Embedding policy commitments Page 43

2-25 Processes to remediate negative impacts Page 44

2-26 Mechanisms for seeking advice and raising concerns Page 44

2-27 Compliance with laws and regulations Page 43

2-28 Membership associations Page 40

International Air Transport Association (IATA), Association of Asia Pacific

Airlines (AAPA), IATA Clearing House, Flight Safety Foundation, Airline

Passenger Experience Association (APEX), International Society of Air Safety

Investigators (ISASI)

2-29 Approach to stakeholder engagement Page 36

2-30 Collective bargaining agreements Page 60

GRI 3: Material Topics 2021

3-1 Process to determine material topics Page 42

3-2 List of material topics Page 42

3-3 Management of material topics Page 42

Strategy Page 21

Ethics and compliance Page 43

Corporate governance Page 82

Stakeholder engagement Page 36

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168AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

GRI 201: Economic performance 2016

3-3 Management of material topics Page 73

201-1 Direct economic value generated and distributed Page 73

201-4 Financial assistance received from government No financial assistance has been received from government since the launch

of Air Astana

GRI 204: Procurement practices 2016

3-3 Management of material topics Page 46

204-1 Proportion of spending on local suppliers Page 46

GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption

Page 45

205-2 Communication and training about anti-corruption policies

andprocedures Page 45

205-3 Confirmed incidents of corruption and actions taken Page 45

GRI 302-3 Energy intensity

3-3 Management of material topics Page 54

302-1 Energy consumption within the organisation Page 54 – GRI 302-1-c- iii, iv are not

applicable, since there were

no cooling and steam

consumption.

– GRI 302-1-d- i, ii, iii, iv are not

applicable, as the Group does

not sell electricity, heating,

cooling, or steam.

302-3 Energy intensity Page 54

302-4 Reduction of energy consumption Page 54

GRI CONTENT INDEX CONTINUED

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169AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

GRI 305: Emissions 2016

3-3 Management of material topics Page 53

305-1 Direct (Scope 1) GHG emissions Page 54 – GRI 305-1-c is not applicable,

as the Group does not

generate biogenic CO₂

emissions.

– GRI 305-1-d- i, ii, iii are not

applicable, as the Group has

not established a base year.

Emissions performance is

measured against a long-term

decarbonization trajectory

targeting net-zero by 2050,

rather than a fixed historical

baseline.

305-2 Energy indirect (Scope 2) GHG emissions Page 54

305-3 Other indirect (Scope 3) GHG emissions Page 54

305-4 GHG emissions intensity Page 54

305-5 Reduction of GHG emissions Page 53

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx),

and other significant air emissions Page 54

GRI 306: Waste 2020

3-3 Management of material topics Page 55

306-1 Waste generation and significant waste-related impacts Page 55

306-2 Management of significant waste-related impacts Page 55

306-4 Waste diverted from disposal Page 56

306-5 Waste directed to disposal Page 55

GRI CONTENT INDEX CONTINUED

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170AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

Environmental compliance Page 56

GRI 401: Employment 2016

3-3 Management of material topics

Pages 57–62

401-1 New employee hires and employee turnover

Pages 58–59

401-2 Benefits provided to full-time employees that are not provided

totemporary or part-time employees Page 60

401-3 Parental leave

Page 60

GRI 403: Occupational health and safety 2018

3-3 Management of material topics

Pages 49–51

403-1 Occupational health and safety management system

Pages 49–51

403-2 Hazard identification, risk assessment, and incident investigation

Pages 49–51

403-3 Occupational health services

Pages 49–51

403-4 Worker participation, consultation, and communication

onoccupational health and safety Pages 49–51

403-5 Worker training on occupational health and safety

Pages 49–51

403-6 Promotion of worker health

Pages 49–51

403-9 Work-related injuries Pages 49–51

GRI 403-9-e rates have been calculated based on 1,000,000 hours worked.

GRI 403-9-b and f are not

applicable, as workers who are

not employees are not covered

by the Occupational Health and

Safety system and not controlled

by the Group.

GRI 404: Training and education 2016

3-3 Management of material topics

Pages 63–67

404-1 Average hours of training per year per employee

Pages 63–67

404-2 Programs for upgrading employee skills and transition

assistanceprograms Pages 63–67

GRI CONTENT INDEX CONTINUED

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Other information

GRI Standard/Disclosure Location of disclosures

Omission

Requirement(s)

omitted Reason Explanation

GRI 406: Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions taken Page 59

GRI 418: Customer privacy 2016

3-3 Management of material topics Page 45

418-1 Substantiated complaints concerning breaches of customer

privacy and losses of customer data Page 45

Innovation and digitalisation Page 26

Service quality Pages 46, 27–29

Passenger turnover Page 4

On-time flight performance Page 28

Aviation safety management systems Pages 47–49

GRI CONTENT INDEX CONTINUED

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172AIR ASTANA GROUP INTEGRATED REPORT 2025

Other information

Topic SASB code Metric Air Astana group

Greenhouse Gas Emissions TR-AL-110a.1 Gross global Scope 1 emissions 1,414,911 (t) CO₂-e

Greenhouse Gas Emissions TR-AL-110a.2 Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets,

and an analysis of performance against those targets

Please read our Integrated Annual Report 2025

Greenhouse Gas Emissions TR-AL-110a.3 (1) Total fuel consumed,

(2) percentage alternative and

(3) percentage sustainable

(1) 19,432 thousand GJ

(2) 0%

(3) 0%

Labour Practices TR-AL-310a.1 Percentage of active workforce employed under collective agreements 100%

Labour Practices TR-AL-310a.2 (1) Number of work stoppages and

(2) total days idle

(1) 0

(2) 0

Competitive Behaviour TR-AL-520a.1 Total amount of monetary losses as a result of legal proceedings associated with anti-competitive

behaviourregulations

In 2025, no fines were imposed on the Air Astana

Group in relation to anti-competitive behaviour

Accident & Safety Management TR-AL-540a.1 Description of implementation and outcomes of a Safety Management System Please read our Integrated Annual Report 2025

Accident & Safety Management TR-AL-540a.2 Number of aviation accidents 0

Accident & Safety Management TR-AL-540a.3 Number of governmental enforcement actions of aviation safety regulations 0

Activity metrics

Sasb code Activity metric Air Astana Group

TR-AL-000.A Available seat kilometres (ASK) 22,032,718

TR-AL-000.B Passenger load factor 82.72%

TR-AL-000.C Revenue passenger kilometres (RPK) 18,225,196

TR-AL-000.D Revenue tonne-kilometres (RTK) 1,735,900

TR-AL-000.E Number of departures 65.676

TR-AL-000.F Average age of fleet 6.4

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) TOPICS AND METRICS

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INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT ON

AIR ASTANA JSC’S SELECTED CONSOLIDATED SUSTAINABILITY INFORMATION

TO THE BOARD OF DIRECTORS OF AIR ASTANA JSC

Limited assurance conclusion

We have conducted a limited assurance engagement on the selected consolidated sustainability

information of Air Astana JSC (the ‘Company’) and its subsidiary (the ‘Group’) as at 31 December 2025

and for the year then ended that is disclosed and marked with symbol

in Air Astana Integrated

Report 2025 and is summarised in the Appendix 1 to this report (the ‘Selected consolidated

sustainability information’ and the ‘Annual Report’ respectively).

Based on the procedures we have performed and the evidence we have obtained, nothing has come

to our attention that causes us to believe that the Selected consolidated sustainability information is

not prepared, in all material respects, in accordance with the Applicable Criteria as presented in the

Appendix 1 to this report (the ‘Applicable Criteria’).

Basis for conclusion

We conducted our limited assurance engagement in accordance with International Standard on

Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews

of historical financial information (‘ISAE 3000 (Revised)’), issued by the International Auditing and

Assurance Standards Board.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our

conclusion. Our responsibilities under this standard are further described in the Practitioner’s

responsibilities section of our report.

Our independence and quality management

We have complied with the independence and other ethical requirements of the International Code of

Ethics for Professional Accountants (including International Independence Standards) issued by the

International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental

principles of integrity, objectivity, professional competence and due care, confidentiality and

professional behaviour.

The firm applies International Standard on Quality Management 1, which requires the firm to design,

implement and operate a system of quality management including policies or procedures regarding

compliance with ethical requirements, professional standards and applicable legal and regulatory

requirements.

Responsibilities for the Selected consolidated sustainability information

Management of the Company is responsible for:

– the preparation of the Selected consolidated sustainability information in accordance with the

Applicable Criteria;

– designing, implementing and maintaining such internal control as management determines is

necessary to enable the preparation of the Selected consolidated sustainability information, in

accordance with the Applicable Criteria, that is free from material misstatement, whether due to

fraud or error; and

– the selection and application of appropriate sustainability reporting methods and making

assumptions and estimates that are reasonable in the circumstances.

Board of Directors is responsible for overseeing the Group’s sustainability reporting process.

Inherent limitations in preparing the Selected consolidated sustainability

information

Greenhouse gas emissions quantification is subject to inherent uncertainty because of incomplete

scientific knowledge used to determine emissions factors and the values needed to combine emissions

of different gases.

Practitioner’s responsibilities

Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about

whether the Selected consolidated sustainability information is free from material misstatement,

whether due to fraud or error, and to issue a limited assurance report that includes our conclusion.

Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the

Selected consolidated sustainability information.

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Other information

INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT ON

AIR ASTANA JSC’S SELECTED CONSOLIDATED SUSTAINABILITY INFORMATION CONTINUED

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise

professional judgement and maintain professional scepticism throughout the engagement. We also:

– determine the suitability in the circumstances of the Company’s use of the Applicable Criteria as the

basis for the preparation of the Selected consolidated sustainability information;

– perform risk assessment procedures, including obtaining an understanding of internal control

relevant to the engagement, to identify where material misstatements are likely to arise, whether

due to fraud or error, but not for the purpose of providing a conclusion on the effectiveness of the

Group’s internal control; and

– design and perform procedures responsive to where material misstatements are likely to arise in the

Selected consolidated sustainability information. The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

Summary of the work performed

A limited assurance engagement involves performing procedures to obtain evidence about the

Selected consolidated sustainability information. The procedures in a limited assurance engagement

vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement.

Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower

than the assurance that would have been obtained had a reasonable assurance engagement been

performed.

The nature, timing and extent of procedures selected depend on professional judgement, including the

identification of where material misstatements are likely to arise in the Selected consolidated

sustainability information, whether due to fraud or error.

In conducting our limited assurance engagement, we:

– obtained an understanding of the Group’s reporting processes relevant to the preparation of its

Selected consolidated sustainability information;

– performed inquires of relevant personnel on the Selected consolidated sustainability information;

and

– conducted limited substantive testing on a sample basis on the Selected consolidated sustainability

information.

Restriction on distribution and use

Our report is intended solely for the Board of Directors of the Company in accordance with the

agreement between us, to assist the management of the Company in reporting on the Group’s

sustainability performance and activities and in responding to their governance responsibilities by

obtaining an independent limited assurance report in connection with the Selected consolidated

sustainability information. The Selected consolidated sustainability information therefore may not be

suitable, and is not to be used, for any other purpose.

We permit this report to be disclosed in the Annual Report, which will be published on the Group’s

website.

The maintenance and integrity of the Group’s website is the responsibility of management; the work

carried out by us does not involve consideration of these matters and, accordingly, we accept no

responsibility for any changes that may have occurred to the reported Selected consolidated

sustainability information when presented on the Group’s website.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than

the Company for our work or this report except where the respective terms are expressly agreed in

writing and our prior consent in writing is obtained.

28 April 2026

Almaty, Kazakhstan

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Other information

Appendix 1 to the Independent practitioner’s limited assurance report dated 28 April 2026

The Selected consolidated sustainability information for the year ended 31 December 2025 disclosed and marked with symbol in the Annual Report and subject to limited assurance procedures together with

theApplicable Criteria, comprising relevant GRI disclosure requirements of GRI Sustainability Reporting Standards published by the Global Reporting Initiative (GRI) (the ‘GRI Standards’) and where necessary

supplemented with management’s internally developed criteria are set out below:

# Performance measure Reference in the Annual Report for 2025 Applicable Criteria

1 Direct economic value generated and distributed Table 16, page 73 GRI 201-1 a

2 Percentage of local suppliers Table 1, page 46

Table 16, page 166

GRI 204-1 a

3 Operations assessed for risks related to corruption Table 12, page 166 GRI 205-1 a

4 Confirmed incidents of corruption Table 13, page 166 GRI 205-3 a-d

5 Total energy consumption within the Company Table 2, page 163 GRI 302-1 a-e

6 Direct (Scope 1) GHG emissions Table 1, Total GHG emissions within the Group, page 163

Table 4, page 54

GRI 305-1 a

7 GHG emissions intensity Table 4, page 54

Table 1, GHG Emissions Intensity, page 163

GRI 305-4 a

8 NOx, SOx and other significant air emissions Table 5, page 54

Table 1, Direct emissions of NOx, SOx and other significant air emissions, page 163

GRI 305-7 a

9 Waste directed to disposal Table 3, page 163

Table 4, page 164

GRI 306-5 a-c and management’s internally

developedcriteria described in Table 7, page 55

10 New employee hires Table 7, page 165 GRI 401-1 a

Employee turnover Table 8, page 165 GRI 401-1 b

11 Parental leave Table 9, page 165 GRI 401-3 a-e

12 The number and rate of fatalities Table 5, page 164 GRI 403-9 a.i

The number and rate of high-consequence

work-relatedinjuries

Table 5, page 164 GRI 403-9 a.ii

The number and rate of recordable work-related injuries Table 5, page 164 GRI 403-9 a.iii

The number of hours worked Table 5, page 164 GRI 403-9 a.v

13 Average hours of training per year per employee Table 10, page 166 GRI 404-1 a

14 Incidents of discrimination Table 15, page 166 GRI 406-1 a

15 Substantiated complaints concerning breaches of

customer privacy and losses of customer data

Table 14, page 166 GRI 418-1 a-b

1 In addition to the GRI disclosure requirements outlined in the table above, the Applicable Criteria also encompass reporting principles and additional recommendations for reporting as detailed in GRI 1.

INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT ON

AIR ASTANA JSC’S SELECTED CONSOLIDATED SUSTAINABILITY INFORMATION CONTINUED

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GLOSSARY

AAK Aviation Administration of Kazakhstan

AATS Air Astana Terminal Services

AIFC Astana International Financial Centre

Air Astana Group Air Astana and FlyArystan brands

AIX Astana International Exchange

AOC Air Operator Certificate

APEX Airline Passenger Experience Association

ASK Available-seat kilometres

ATC Air Traffic Control

CAMO Continuing Airworthiness Management Organisation

CASK Cost of Available Seat Kilometre

CIS Commonwealth of Independent States

CORSIA Carbon Offsetting and Reduction Schemefor International Aviation

CRMS Corporate Risk Management System

CSAT Customer Satisfaction Ratings

E&M Engineering and Maintenance

EASA European Aviation Safety Agency

EBITDAR

Earnings before interest, taxes, depreciation, amortisation, a

ndrestructuringor rent costs

EBRD European Bank for Reconstruction and Development

EPS Earnings Per Share

ESOP Employee Share Ownership Plan

ETOPS Extended-range Twin-engine Operations Performance Standards

EUROBAK European Business Association of Kazakhstan

GDP Gross Domestic Product

GDR Global Depository Receipts

GHG Greenhouse Gas

GRI Global Reporting Initiative

HEART Hospitable, Efficient, Active, Reliable, Trustworthy

HSE Health, Safety and Environment

IAS Internal Audit Service

IATA International Air Transport Association

ICAO International Civil Aviation Organisation

IFRS International Financial Reporting Standards

IOSA IATA Operational Safety Audit

IPO Initial Public Offering

ISA International Standards on Auditing

ISO International Organization for Standardization

ISP Integrated Sustainability Programme

KASE Kazakhstan Stock Exchange

KPI Key Performance Indicator

KRI Key Risk Indicator

LCC Low-cost carrier

LCDP Low-Carbon Development Programme

LMS Learning Management System

LSE London Stock Exchange

LTIP Long-Term Incentive Plan

MRO Maintenance, Repair, Overhaul

NPS Net Promoter Score

NRI Non-recurring item

OCI Other Comprehensive Income

OECD Organisation for Economic Co-operation and Development

OEM Original Equipment Manufacturers

OHS Occupational Health and Safety

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GLOSSARY CONTINUED

OTP On-time Performance

PFS Primary Financial Statements

RA Risk Assessment

RASK Revenue per Available Seat Kilometer

RPK Revenue Passengers Kilometre

SAF Sustainable Aviation Fuel

SAFA Safety Assessment of Foreign Aircraft

SARPS IATA Standards and Recommended Practices

SASB Sustainability Accounting Standards Board

SMS Safety Management System

STEM Science, Technology, Engineering, and Mathematics

TCO Third Country Operations

TSR Total Shareholder Return

UER Unscheduled Engine Removals

UN SDG United Nations Sustainable Development Goals

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