Samoa’s Polynesian Airlines made over USD1.5m profit in 10 months

Polynesian Airlines made over US$1.5m in profit in the 10 months of this financial year up to the end of April, a 91 percent increase over the same period last year.

Polynesian Airlines made over US$1.5m in profit in the 10 months of this financial year up to the end of April, a 91 percent increase over the same period last year.

“These results amount to a Net Profit Ratio of 12% (a 68% increase on last year); a Return on Assets of 5.9% (a 117% increase on last year); an 8.1% Return on Equity (a 67% increase on last year) and a Current Ratio of 297% (a 15% increase on last year),” a press release says.

Apia-based Polynesian Airlines flies between Samoa and American Samoa with take-offs from Faleolo and Fagali’i airports.

In the 10-month period the company operated about the same number of flights as last year of over 3,700 between the two Samoas flying close to 45,000 passengers – an increase of over 9 percent from last year, and achieving a load factor of over 75 percent, an increase of 8 percent from last year.

Last week Polynesian paid its shareholder, the Government of Samoa, a US$55 451 dividend of US$55,451 which was 5 percent of net profit for the financial year ended 30 June 2012. The company has paid Government dividends yearly since the year ending 30 June 2009.

In November 2005, Polynesian Airlines was restructured and its jet aircraft operations handed over to Polynesian Blue, now known as Virgin Samoa.

In the first six years to the end of June 2012, it made a profit every year – a total profit of over TUS$18 million (USUS$7.8 million) or an average per year of over US$3 million (USUS$1.3 million).

The re-opening in July 2009 of Fagali’i Airport, which Polynesian owns and operates, has been the key to their success, said Chief Executive Officer Taua Li’ali’alefao Fatu Tielu.

Just five kilometers from the capital Apia, the airport was closed for several years until it was revived to take advantage of its closeness to the capital and to Pago Pago International Airport in American Samoa.

Up till then Polynesian was forced to compete against two bigger American Samoan airlines from Faleolo airport located 40 km away from Apia.

“It has been a tough journey but with common sense, prudent management, staff perseverance and dedication we have proven beyond doubt that the country’s National Carrier can be profitable consistently,” said Taua.

“The re-opening and operating of Fagalii Airport since July 2009 by the company itself was one of the best decisions we made in maintaining the company’s financial viability,” he said.

“I look forward to the completion of the seventh consecutive profitable year of our National Airline on June 30, 2013.

“We would like to thank the people of Samoa for their invaluable and continued support of our National Carrier.”

Two rivals compete with Polynesian in the inter-Samoa route: American Samoan-based Inter Island Airways and newcomer Samoa Air, an Apia-based outfit.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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