Himalaya Airlines (H9, Kathmandu) owes NPR629.2 million Nepalese rupees (USD4.1 million) in unpaid airport charges, including NPR440 million (USD2.8 million) in passenger service charges collected from travellers, the Kathmandu Post reported citing Nepal's Civil Aviation Authority (CAAN).
CAAN spokesperson Bikram Gautam warned that continued non-payment could lead to restrictions on the airline's operations. However, no decision has been announced.
Himalaya Airlines has proposed paying NPR200 million (USD1.3 million) immediately and settling the remainder in instalments, vice-president Vijay Shrestha told the Kathmandu Post. It has also offered ground handling equipment worth approximately NPR500 million (USD3.2 million) as collateral.
CAAN had agreed to an instalment arrangement in April 2026, but the carrier made only one payment before falling behind again. The authority estimates that additional charges and penalties could increase the outstanding amount to NPR700 million (USD4.5 million).
Shrestha attributed the financial difficulties to rising fuel prices and airport charges, weaker passenger demand, and restrictions on the airline's ground handling operations. He said accumulated losses had reached approximately NPR15 billion (USD98 million).
Himalaya Airlines previously faced a similar dispute in 2019, when it owed NPR250 million (USD1.6 million) in airport charges. The carrier subsequently began repaying the debt under an instalment arrangement.