Biman Bangladesh Airlines, the state-owned national carrier, reported a net profit of Tk 282 crore for the 2023-24 fiscal year, marking a significant increase from the previous year’s profit of Tk 22 crore. The company’s revenue, primarily generated from passenger and cargo transport and ground handling services, has shown positive growth. However, despite the profit, Biman is still burdened with substantial debt, which stands at approximately Tk 14,936 crore according to its latest audit report.

The majority of the debt is owed to the Civil Aviation Authority of Bangladesh (CAAB) and Padma Oil Company Limited. Officials at Biman have stated that while the airline has been unable to reduce its liabilities significantly, there has been no new debt since 2020. The company plans to settle its outstanding dues by the 2027-28 fiscal year.

The debt primarily arises from overdue fees for the regular use of airports and airspace, as well as unpaid fuel charges. Biman officials argue that disputes with these creditors have contributed to the delayed payments. According to the latest information, Biman owes Tk 1,832 crore to Padma Oil Company as of October 2024. In the past fiscal year, the airline made partial payments, including Tk 276 crore between April 2023 and October 2024, with the latest payment of Tk 15 crore made in early November.

Although information about Biman’s liabilities to CAAB is not immediately available, reports indicate that as of February 2023, the airline owed Tk 5,617 crore to the authority.

Biman’s leadership, including Chairman Abdul Mueed Chowdhury and Managing Director Dr. Safiqul Rahman, has faced questions about the airline’s financial situation. After several unsuccessful attempts to contact the Chairman, Biman’s Public Relations Officer, Bosra Islam, responded to inquiries. She clarified that disputes with both CAAB and Padma Oil had led to the accumulation of debt, particularly regarding surcharges imposed by these entities. According to Islam, the dispute with Padma Oil was resolved in 2020, and the company no longer holds any outstanding dues, while most of the liabilities to CAAB are related to old accounts.

Despite the ongoing disputes, Biman continues to make payments to CAAB, excluding surcharges. Islam emphasized that the airline has paid off the majority of its debts from before 2020 and plans to clear the remaining liabilities with CAAB by the 2027-28 fiscal year.

Biman’s financial performance has been mixed in recent years. While the airline’s operational revenue for the 2023-24 fiscal year reached a record Tk 10,575 crore—9.5% higher than the previous year—the negative impact of currency devaluation and taxes reduced the net profit. The company reported operational profits of Tk 1,556 crore but a net profit of only Tk 282 crore after accounting for exchange losses and taxes.

Biman’s management also disclosed that it has paid a total of Tk 12,574 crore (or approximately USD 104.79 million) from its own funds to purchase 13 new aircraft, including loan payments and interest, as of November 2024. In the same fiscal year, Biman deposited Tk 927 crore in taxes and VAT to the national treasury. Additionally, the airline purchased ground handling equipment worth Tk 24.5 crore for the Third Terminal at Dhaka's Hazrat Shahjalal International Airport.

In terms of operations, Biman reported that it carried over 3.36 million passengers in the past fiscal year with its fleet of 21 aircraft. The airline also handled over 43 tons of cargo. Currently, Biman is providing ground handling services to 32 foreign passenger airlines and 17 cargo airlines.

While the airline has made some progress in its financial recovery, the significant burden of debt and ongoing disputes with key stakeholders remains a challenge. It is yet to be seen if Biman can fully resolve these financial issues in the coming years while maintaining its position as a key player in Bangladesh’s aviation sector.