PNG Air’s Fleet Renewal Continues, More ATRs Due

By Andrew Curran.

PNG Air’s fleet renewal programme continues apace, with the airline saying it will introduce ten ATR aircraft over the next 12 months. Among those, the first, P2-ATX (msn 1149), has already entered service and three more are expected in December.

PNG Air’s just released 2024 Annual Report, which you can read in full here, contained the fleet renewal update.

Papua New Guinea’s second largest scheduled passenger airline is also standardising and expanding its aircraft fleet. Core to this is ending DHC-8-100 (Dash-8) operations and focusing solely on ATRs.

The annual report notes that the airline has dismantled four previously grounded DHC-8-100s for spare parts. The remaining five Dash-8s are now undergoing a sale or disassembly process.

“In 2025, (PNG Air) commenced actively marketing the sale of all Dash-8 aircraft and spare parts,” the report stated. “Multiple offers were received from potential buyers, and the company is currently in the process of finalising the structure of the deal(s) and selecting the final buyer(s) and expects to complete the sale by early 2026.”

PNG Air taking a mix of ATR72 and 42s

Including the recently arrived P2-ATX, PNG Air already operates seven ATR72-600s. The additional nine aircraft, expected over the next 12 months, will be a mix of ATR72-600 and ATR42-600 types. These will cover the capacity gap caused by retiring the DHC-8-100s. There will also be enough capacity left over to shore up current operations and expand the airline.

The annual report notes that two additional leased aircraft are due for delivery in December 2025. It says a third aircraft, under a signed letter of intent, is also expected to arrive that month.

The remaining six aircraft, comprising three under firm purchase agreements and three under signed letters of intent, are expected by October 2026. However, the annual report does not provide a delivery schedule by aircraft type.

“The arrival of the first ATR aircraft in October 2025 represents a milestone in PNG Air’s transformation journey,” the report adds. “Subsequent deliveries throughout Q4 2025 to Q3 2026 will provide the foundation for renewed growth and efficiency gains.”

“In December 2025, PNG Air will launch its new network schedule, offering increased frequency and enhanced connectivity across key domestic routes.”

PNG Air fleet renewal part of a broader three year plan

PNG Air’s fleet renewal programme is part of a three-year plan to revitalise the carrier. This followed a financially turbulent period. Among other outcomes, PNG Air entered a scheme of arrangement in 2023, allowing it to restructure its external debts and recapitalise.

While difficulties remain, the scheme of arrangement has given PNG Air some breathing space and its financial situation has improved.

However, the airline still recorded a pre-tax loss of PGK26.7 million (USD6.3 million) in calendar 2024. But the annual report says this was primarily due to a PGK38.1 million (USD9 million) non-cash impairment charge connected to the retirement and disposal of the DHC-8-100 fleet.

“Excluding this… the group’s underlying operational performance would have reflected a pre-tax profit of PGK11.4 million (USD2.7 million), marking a notable operational turnaround despite adverse conditions.”

The annual report also says the scheme of creditors arrangement continues to progress satisfactorily. “Of the ten counterparties under the restructuring program, five have been fully settled, with the remainder being repaid in accordance with agreed terms,” the report reads. “The Group continues to honour all commitments under the scheme.”

Photo: PNG Air.