Air Mauritius profitable once again, British Airways sells stake
25 Jun 2008
The Air Mauritius Group has returned to profit, posting earnings of €17 million ($26.4 million) for the financial year ended 31 March, 2008. This is against a €6.7 million loss in the previous year. Additionally, Air Mauritius has announced that existing shareholders, including the Mauritius government, had reached agreement with British Airways to purchase its 10.5 per cent stake in the airline.
The airlines' full year revenue went up by 8.2 per cent year-on-year to €448.1 million, and its passenger numbers increased by 11.4 per cent to 1.3 million. It's load factor too went up 2.2 points to 76.8 per cent.
Expenses increased 3 per cent to €399.7 million, and the operating profit surged to €24.7 million, from €1.6 million the previous year. CEO Manoj RK Ujoodha said the result testifies that the reforms undertaken since 2006 are now showing results.
The company said it has reviewed its plans for the coming year, and is placing emphasis on further restructuring, cost reduction and adjustment of capacity, routes and timetables in the short term. It plans to adjust full-year capacity growth to one per cent in lieu of the originally planned four per cent, and does not plan to cut destinations from its network.
Shareholders will buy out British Airway's stake at a cost of £3.2 million ($6.3 million). BA had bought into the airline in 1973, though a 13.24 per cent in Air Mauritius Holding Co., and 3.84 per cent in Air Mauritius Limited.
The airline presently operates five A340-300s, two A340-300Es, two A319-100s, one A330-200 and two ATR 72-500s to 26 destinations.
