Kathmandu, Aug. 14 -- Prime Minister Balendra Shah recently highlighted what he described as encouraging signs of recovery at Nepal's flag carrier, Nepal Airlines Corporation (NAC). In a social media post, Shah said the airline had generated Rs6.27 billion in revenue in just four months, achieved an 86 percent occupancy rate and repaid Rs1.06 billion in loan instalments.

But the airline's own preliminary annual figures paint a less upbeat picture.

NAC estimates that it generated around Rs23.40 billion in revenue in the last fiscal year, while its expenses are expected to reach roughly Rs24.40 billion. That would leave the airline with a deficit of about Rs1 billion for the year, despite the increase in revenue.

The corporation has yet ...