PNG Air lodges 2025 annual report as turnaround continues

By Andrew Curran.

PNG Air has filed its annual report and audited accounts for the 12 months to December 31, 2025, bringing its reporting obligations up to date and drawing a line under an era of late filings and missing annual reports.

The airline lodged last year’s report and accounts with the Papua New Guinea Stock Exchange on May 21, 2026, saying 2025 marked a pivotal period in its “transformation journey”. However, PNG Air still reported an after-tax loss of PGK9.9 million (USD2.3 million) for the year.

In contrast, PNG Air posted an after-tax loss of PGK20.3 million (USD4.7 million) in 2024. Papua New Guinea’s financial year aligns with the calendar year.

The Port Moresby bourse suspended PNG Air from trading in 2019 after the airline repeatedly failed to lodge its periodic reports and audited accounts on time. Trading remains suspended, but PNG Air’s filings are now up to date.

PNG Air improves financial position

PNG Air has also successfully undertaken a financial reorganisation and recapitalisation programme, including raising PGK29.8 million (USD6.8 million) late last year.

The company’s total assets increased to PGK640.3 million (USD147 million) in 2025, while net liabilities improved significantly to PGK12.9 million (USD3 million), compared to PGK30.6 million (USD7 million) in 2024. The airline says this reflects its capital-raising initiatives and improved operating performance.

Deloitte Touche Tohmatsu audited the accounts and again noted that material uncertainty about the airline’s future exists due to the surplus of current liabilities over current assets and the airline’s net liability position.

However, that largely pro forma finding belies the work PNG Air’s management has undertaken during the past year to turn around the airline.

The company and airline were holding cash and bank balances of PGK54.1 million (USD12.4 million) as of December 31, 2025, while its largest shareholder, Mineral Resources Development Company Ltd (MRDC), has committed to financially supporting PNG Air if required.

“While the Group continues to report net liabilities, management and the board remain confident that the strategic fleet transition, improved operating performance, and shareholder support will return the Group to positive equity,” CEO Brian Fraser wrote in this week’s filing.

“The Group progressed from restructuring toward operational recovery and fleet modernisation,” he added.

A three-year transformation programme, approved in 2025, will run through to 2028.

ATR fleet modernisation continues

PNG Air’s current fleet of eleven ATR72-600s and one ATR42-600 operates to 22 airports across Papua New Guinea. The airline is transitioning towards an all-ATR fleet and is in the process of selling its final three parked DHC-8-100s and associated spares.

The airline’s first ATR42-600, P2-ATU (msn 1804), ferried into Papua New Guinea earlier this month. A second ATR42, P2-ATT (msn 1216), is enroute to Port Moresby at the time of publication.

A further four ATR aircraft are due for delivery between now and September, completing the airline’s fleet modernisation and standardisation programme.

“The phased delivery of additional ATR aircraft during 2026 will complete the transition to a simplified and more efficient fleet structure, improving operational reliability and lowering long-term maintenance costs,” the 2025 annual report reads.

As part of the transformation programme, PNG Air says its other priorities this year include:

• Restoration of scheduled passenger capacity.
• Expansion of charter contracts.
• Cost optimisation initiatives.
• Balance sheet strengthening.

“With improved fleet efficiency, restored capacity, and continued charter demand, the Group is focused on delivering a return to sustainable profitability,” the filing adds.

“The board and management remain confident that the strategic transformation underway will position PNG Air for sustainable growth and improved financial performance in 2026 and beyond.”

You can read PNG Air’s 2025 Annual Report here.

Photo: PNG Air.

Contact the writer: andrew@aerosouthpacific.com