The FINANCIAL — This Thursday 13 August, Air Mauritius posted a net negative First Quarter Financial Result of EUR 9.8 million which is better than initial forecasts.
The First Quarter is traditionally difficult and loss making as it corresponds to the low tourist season. The result has also been impacted by a payout of EUR 7.7 million on hedging obligations contracted last year. Excluding hedging, the loss is at EUR 2.1 million which is the best ever posted by the company for a First Quarter, according to Air Mauritius.
Encouraging indicators as compared to previous years
Seat capacity was at 449,685 which represents an increase of 3% and the number of passengers carried improved by 5.5% to reach 315,098. The turnover was of EUR 106.5 million representing an increase of 2.1%. Load factor gained 3 points to reach 75.1%, which confirms the better use of capacity deployed.
Measures taken are achieving positive results in spite of a persistently difficult environment
The weak EURO continued to impact bottom line and is still a cause for concern while intensifying competition also remains a major challenge for the company. It is however reassuring that several measures taken during the past few months are starting to produce positive results. Adjustments made to operations on China and additional frequencies on Mumbai are starting to yield positive results with satisfactory load factors achieved in both markets. The Mauritius market has also stabilized following the launch of several aggressive promotional campaigns.
Outlook for the remainder of the Financial Year
Financial recovery remains a priority for the company. The environment is challenging and initial recovery measures taken need to be backed up by more thorough reforms involving all stakeholders. A new CEO and new members of the Leadership Team will soon be appointed as part of the recruitment process initiated earlier this year. The governance structure of the company has been reinforced and the Board of Directors is working closely with Management during the transition period to ensure the smooth running of the company.
Several initiatives have been taken including the launch of Chengdu as a new Air Mauritius destination in China, the Travel Extravanganza campaign for the Mauritius market and the forthcoming launch of Air Mauritius Holidays in collaboration with several local and international tourism partners. These initiatives and more yet to come are part of a spectrum of innovative ideas put in place to better address customer expectations.
Air Mauritius is confident that with the support of all stakeholders, it will improve its Financial Results for this year and strengthen its role as a national airline.