Air Mauritius reduces1Q loss year-over-year
Published: August 10, 2012
Air Mauritius (MK) reported a reduced fiscal first-quarter loss of €10.4 million ($ 12.8 million) for the three months ending 30 June 2012, a slight improvement from the €11.9 million loss recorded for the same period a year ago.
The airline blamed difficult trading conditions caused by the economic crisis worldwide, but particularly in its main market, Europe, as well as high fuel prices, currency exchange rate volatility, and increased competitive pressures.
MK pointed out that the depreciation of the euro against the dollar had had a particularly negative impact, increasing the level of loss for the quarter by €8 million. Without this depreciation, the first-quarter loss would have been significantly smaller, at €2.4 million, the airline said.
Passenger numbers for the quarter were up 7.4% to reach a record of 292,449, and operating revenues increased 12.5% to a record €104.5 million. The number of seats offered increased by 9.1% to a record 430,106, and the passenger load factor also slightly improved, up 0.8 percentage points to 74.9%. However, operating expenses for the quarter were also up 9.7%, a €9.6 million increase.
Several milestones in the company’s restructuring plan have been completed in the areas of network consolidation, commercial function, revenue management and cost reduction initiatives. A customer service project has also been launched and the results of all these projects should begin to be felt in the second half of the current financial year (ATW Daily News, June 13).
In a statement, the airline said: “While our transformation program is well on track at this stage, we are mindful of the downside risks represented by the potential deterioration of economic conditions in Europe with spill-over effects worldwide, higher fuel prices and further weakening of the euro.”