Air Mauritius: From 10 million euro loss to 2 million profit in 3 months
A year ago, Air Mauritius posted a nearly 10 million euro loss in Q1 but favorable fuel prices, cost cuts, improved load factors to 77.2 percent, and growing traffic numbers from and to China have tur
A year ago, Air Mauritius posted a nearly 10 million euro loss in Q1 but favorable fuel prices, cost cuts, improved load factors to 77.2 percent, and growing traffic numbers from and to China have turned this into a 2 million euro profit for the same period this year. For the years 2013 and 201, the figures were 8.3 and 6.9 million euro losses respectively, showing the financial turnaround has taken hold now.
The airline did, however, concede a fall in yield by over 5 percent, signs that growing load factors come at a cost.
Passenger numbers overall were up in the period under review by over 9 percent, outstripping the increase in seat capacity which was given as 7 percent. This translates into 343.473 passengers uplifted in Q1 compared to 315.098 a year ago.
The Air Mauritius Group for the 2015/16 financial year recorded profits of euro 16.5 million compared with a loss of euro 23.7 million in the previous financial year 2014/15.
These data represent the best result for Air Mauritius in a decade and affirm that the various hard decisions taken over the past years vis-a-vis route and cost cuts are bearing positive results.
According to information available, Air Mauritius is monitoring the changing competitive environment very closely to avoid a return to red bottom balance sheets. The Africa Asia Air Corridor is now fully operational with the launch of Maputo and Dar es Salaam in May to reinforce the African network and turn Mauritius into a springboard for the Far and South East to Africa.
The launch of Guangzhou in July helped to strengthen the airline’s Asian network.
A third ATR 72-500 was added to the fleet to allow and increase in flights from Port Louis to Rodrigues, Pierrefonds, and the routes to Reunion. This addition brought the overall fleet to 13, comprised of six A340-300s, two A330-200s, two A319s and three ATR72-500s.