Air Mauritius doubles losses to Euro 6.2 million in half year to September 2014
Loss on exchange on revaluation of monetary assets and liabilities for the semester amounted to Euro 2.6 million, as compared to a gain of Euro 2.2 million for the corresponding semester of last year, with the resulting net swing of Euro 4.8 million being largely accountable for the increased loss recorded. (Image: Fly Away Simulation)
The island’s national carrier, Air Mauritius, declared that group losses for the half year ended 30 September 2014 have doubled to Euro 6.2 million (around MUR 244.09 million) compared to losses of Euro 3.1 million (around MUR 122.05 million) recorded in the year-ago period.
The statement noted that the loss on exchange on revaluation of monetary assets and liabilities for the semester amounted to Euro 2.6 million, as compared to a gain of Euro 2.2 million for the corresponding semester of last year. The resulting net swing of Euro 4.8 million was largely accountable for the increased loss recorded.
Also, at a company level, losses widened to Euro 6.3 million (around MUR 248.03 million) compared to losses of Euro 3.3 million (around MUR 129.92 million) in the year-ago period.
However, the group operating revenue was boosted by Euro 11.7 million (around MUR 460.63 million) to reach Euro 229.1 million (around MUR 9.02 billion).
On the other hand, operating expenses went up by Euro 9.7 million (around MUR 381.89 million) from Euro 209.4 million (around MUR 824.41 million) to Euro 219.1 million (around MUR 8.63 billion).
The gross and operating profits continue to improve, stated management in the financial highlights accompanying the results posted on the Stock Exchange of Mauritius (SEM).
During the half year ended 30 September 2014, Air Mauritius saw its total passengers boosted by 3.6% to reach 641,158 compared to 618,797 passengers for the corresponding period of 2013.
In spite of positive results for the second quarter, losses brought forward from the first quarter reduced the total shareholders’ funds for the company from Euro 83.7 million (around MUR 3.30 billion) as at 31 March 2014 to Euro 75.5 million (around MUR 2.97 billion) as at 30 September 2014.
Consequently, the net assets per share as at 30 September 2014 stood at Euro 0.74 (around MUR 29.13) as compared to Euro 0.82 (around MUR 32.28) as at 31 March 2014.
The statement noted that the depreciation of the Euro will continue to affect the results of the company; however, this may be alleviated by the recent fall in price of fuel.
Finally, to tackle the fierce competition on major routes, the company has been proactive in implementing a series of initiatives to boost traffic on its network.