Air Mauritius narrows losses in first quarter of 2014-15
The first quarter usually shows a loss because this period corresponds with the off-peak tourist season in Mauritius but the national carrier managed to improve losses by €1.4 million to €6.9 million from April to June 2014 compared to the loss of €8.3 million it had incurred in the corresponding period of fiscal year 2013-2014. (Image: Dest Mauritius)
Air Mauritius recorded a loss of €6.9 million (around Rs 285.02 million) during the first quarter of the 2014-2015 fiscal, which is nevertheless an improvement of €1.4 million compared to the loss of €8.3 million it had incurred in the corresponding period of fiscal year 2013-2014.
It may be noted that the first quarter usually shows a loss because this period corresponds with the off-peak tourist season in Mauritius.
Besides, revenues for the quarter grew by 5.3% to €104.3 million (around Rs 4.31 billion) compared to the corresponding period last year, said the national carrier of the island economy, as it declared its results for the April to June 2014 period, today, August 14, 2014.
As the result of the quarterly loss, the total shareholders’ funds for the company declined from €83.7 million as at 31 March 2014 to €77.9 million as at 30 June 2014. However, the net assets per share increased from €0.67 (Rs 26.89) as at 30 June 2013 to €0.76 (Rs 31.33) as at 30 June 2014.
The implementation of the new business model of Air Mauritius under the revolutionary 7-Step Plan continued with the consolidation of traditional markets, along with growth in emerging markets.
Flights to China were on a clear growth path with service now up to six times a week (three flights to Shanghai, two to Hong Kong and to Beijing).
During the first quarter, seat capacity increased by 1.2% or by 5,277 seats, with Air Mauritius transporting 19,515 passengers or 7% passengers more than in the corresponding period of the previous year across its entire network. Total passengers carried during the quarter went up to 298,624 compared to 279,109 passengers carried in the quarter ended 30 June 2013.
Additionally, cargo carried increased by 15.5% compared to the first quarter of the previous fiscal year, with a whopping 8,770 tons shipped.
Besides, the improved results for the first quarter were achieved despite persistent operational constraints such as increase in price of fuel by 6.8% (up to 110 dollars).
Despite the improvement of 5.1% in the euro / dollar exchange rate, the negative effects of currency parity have been felt on the South African rand, the Indian rupee, the Australian dollar and the Mauritian rupee, which decreased by an average 23%, 17%, 19% and 2% respectively.
Moreover, the improvement in tourist arrivals during the period April to June 2014 could not offset the negative impact of fuel prices and currency parity.
Having said this, Air Mauritius continues to strengthen its foundation to guarantee a bright future for the company.
Having returned to profitability over the full financial year last fiscal with €7.3 million for the period April 2013 – March 2014, the company announced two major developments in July 2014.
First of all, to renovate its ageing fleet, the company placed the order for six A350-900 Airbus. The new generation Airbus aircraft will reduce operating costs and improve financial results and operational efficiency.
Secondly, the national carrier was conferred the coveted 4-Star status by international rating agency Skytrax, receiving an upgrade from its 3-Star status. Skytrax also awarded the national carrier the title of Second Best African Airlines and Second Best African airline cabin crew, and also bestowed it a place among the Top 10 global airlines that have experienced the greatest improvement.