Financial Performance
Comprehensive Financial Analysis
Drukair’s financial performance has rebounded following the pandemic, showcasing resilience and strategic recovery efforts.
2023 Financial Highlights
- Total Revenue: $30 million
- Driven by increased passenger traffic, especially from tourists returning to Bhutan post-COVID.
- Operating Expenditure: $25 million
- Significant increases in fuel prices and operational costs were managed through effective cost-control measures.
- Net Profit: $5 million
- A strong recovery from the $1 million loss in 2022, attributed to increased demand for air travel and enhanced operational efficiency.
Revenue Breakdown
| Source of Revenue | 2023 (in $ million) | 2022 (in $ million) | % Growth |
|---|---|---|---|
| Passenger Revenue | 20 | 12 | 66.7% |
| Cargo Revenue | 4 | 3 | 33.3% |
| Ancillary Revenue | 3 | 2 | 50% |
| Charter Services | 3 | 1 | 200% |
Operational Efficiency
Drukair’s operational efficiency has improved, leading to better cost management and increased profitability:
- Operational Efficiency Ratio: Improved from 80% in 2022 to 66.7% in 2023, indicating more effective use of resources.
- Cost Control Measures: Initiatives implemented to manage costs included renegotiating supplier contracts and optimizing flight schedules, resulting in a 10% reduction in operational expenses.
- Staff Training Programs: The airline invested in training and development programs, resulting in a 15% increase in employee productivity and enhanced service quality.
Future Financial Projections
- Revenue Target for 2024: Drukair aims for a 33% increase in revenue, targeting $40 million, driven by new routes and improved marketing efforts.
- Cost Management Strategy: The airline plans to cap expenditure increases at 15% for 2024, focusing on efficient resource allocation and waste reduction.
