Air Mauritius widens losses by 53% to Eur 8.7 mn for 9 months to Dec
Air Mauritius saw the result of the nine months period under review being significantly impacted by the depreciation of the Euro. (Image: Chandrasekhar Rane)
Air Mauritius recorded losses of Eur 8.7 million and Eur 9.1 million at a group and company level respectively for the nine months ended 31 December 2014, up 53% and 75% over the corresponding period last year.
The result of the nine months period under review has been significantly impacted by the depreciation of the Euro.
When compared to the nine months ended 31 December 2013, the net negative impact of the depreciation of the Euro has been Eur 18.5M.
The number of passengers carried went up by 2.5% to reach a record level of 1,016,314 as compared to 991,907 during the nine months ended 31 December 2013. The Available Seat Kilometres (ASK) went up by 4.9% whilst the passenger load factor dropped from 75.5% to 73.2% when compared to the corresponding period of last year.
Operating revenue of the company went up by Eur 6.9 million to reach Eur 351.0 million whereas operating expenses increased by Eur 11.9 million from Eur 322.3 million to Eur 334.2 million mainly on account of the higher level of operations and the depreciation of the Euro.
Total shareholder funds at a company level decreased from Eur 83.7 million as at 31 March 2014 to Eur 70.2 million as at 31 December 2014. The drop in the shareholders’ funds is mainly attributable to the loss for the period, movement in cash flow hedges and actuarial gains on defined benefits plan.
On future outlook, the company noted that it will benefit from the recent drop in the fuel prices. However, this will be offset by the drastic depreciation of the Euro since end of December 2014.
The company concluded on the note that it has taken various initiatives to boost up traffic on its network in the wake of fiercer competition on major routes and has also reinforced its monitoring of all its costs.