Buddha Air’s journey into 2026 started with a sobering reminder of the challenges facing Nepal’s aviation sector.
On January 2, an ATR 72-500 aircraft overshot the runway at Bhadrapur Airport, with all 55 passengers and crew safely evacuated. While the incident underscored infrastructure vulnerabilities at regional airports, it also highlighted the carrier’s robust safety protocols that prevented casualties.
This runway excursion comes at a pivotal moment for Buddha Air, which has spent 28 years establishing itself as Nepal’s dominant domestic carrier with a commanding 60 percent market share and record-breaking financial performance through 2025.
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Image source: buddhaair.com
Market Dominance Through Fleet Expansion
Buddha Air operates 18 ATR aircraft comprising two ATR 42-320s and sixteen ATR 72-500s. This makes it the seventh-largest ATR fleet globally.
The carrier connects 13 domestic cities across 43 flight routes, plus two international destinations in India (Varanasi and Kolkata). Between October 1997 and September 2025, Buddha Air completed 721,570 flights, transporting 27.97 million passengers.
Operational Metric | Performance (as of Sept 2025) |
|---|---|
Total Fleet Size | 18 aircraft |
Domestic Routes | 43 routes across 13 cities |
International Routes | 2 cities (Varanasi, Kolkata) |
Market Share (2024/25) | 60% |
Total Flights | 721,570 |
Passengers Carried | 27.97 million |
Financial Performance Reaching New Heights
Buddha Air achieved its highest-ever revenue of NPR 13.22 billion in fiscal year 2024, representing 9 percent year-over-year growth. The first half of FY 2024/25 saw revenues reach NPR 7.41 billion, maintaining the carrier’s dominant position in Nepal’s domestic aviation market.
Operating profit margins improved dramatically from 10 percent in FY2023 to 18 percent in FY2024. This surge resulted from reduced fuel prices and a regulatory change allowing VAT registration from the start of FY2024, enabling input tax credit claims on capital expenditures and operating expenses including fuel costs.
Revenue Growth Trajectory:
FY2021: NPR 3.34 billion
FY2022: NPR 10.10 billion
FY2023: NPR 12.17 billion
FY2024: NPR 13.23 billion
H1 FY2025: NPR 7.41 billion
The carrier’s financial strength earned it an upgraded credit rating in June 2025. ICRA Nepal elevated Buddha Air’s long-term rating to [ICRANP] LA from LA-, and short-term rating to A1 from A2+, placing it among the top 1 percent globally in aviation credit ratings.
Image source: buddhaair.com
Technical Infrastructure and Safety Investment
Buddha Air operates Nepal’s only international-standard closed-door hangar facility at Tribhuvan International Airport. Built in 2012, the 37,000-square-foot hangar represents a $2.5 million investment and holds Part 145 Approved Maintenance Organisation certification from Nepal’s Civil Aviation Authority.
The facility stores spare parts and materials valued at approximately $22 million, with an additional $28 million in specialized tools for ATR 42-320 and ATR 72-500 aircraft. The hangar provides maintenance services not only for Buddha Air’s fleet but also for regional carriers, including NOVO Air from Bangladesh and Druk Air from Bhutan.
Buddha Air invests approximately $600,000 annually in pilot training programs, utilizing dedicated six-axis simulators. The carrier employs 18 instructor pilots and operates Nepal’s only ATR Flight Panel Trainer, allowing pilots and engineers to practice handling challenging situations in a simulated environment.
The airline implements a voluntary Flight Data Monitoring system that analyzes every flight within 24 hours, identifying trends and deviations to enable prompt corrective actions.
Training Investment (FY 2024/25) | Amount (USD) |
|---|---|
Technical Training | $1,477,266 |
Non-Technical Training | $159,304 |
Total Investment | $1,636,570 |