INTERIM FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2011
The Airline Industry continues to face major challenges. IATA’s recent Airline Business Confidence survey reported a significant decline in profitability expectations. This decline in profitability is mainly attributable to the continuing high oil prices and the softening in demand for both passengers and freight due to the deteriorating economic conditions in the major markets.
For the quarter ended 30 September 2011, the Group and the Company recorded losses of Eur 7.2 million and Eur 6.3 million respectively compared to profits of Eur 5.0 million and Eur 4.8 million for the comparative period of last year.
Seat capacity was increased by 8.0% (35,053 additional seats) compared to the same period of previous year. However, the number of passengers carried went up by only 4.4% (+ 14,045) to reach 336,391 as compared to 322,346 passengers carried during the quarter ended 30 September 2010. Consequently, the passenger load factor went down from 81.4% to 78.6%. Cargo traffic recorded a growth of 6.7% to 8,175 tons. The operating revenue of the Company increased from Euro 106.6 million to Euro 116.0 million (+8.9%).
Operating expenses of the company increased by Euro 14.5 million (+14.8%) mainly on account of a 45% average increase in the price of jet fuel (from 231.8 US cents per US gallon to 335 US cents per US gallon) and an 8% increase in capacity offered.
The Group and the Company recorded losses for the half year ended 30 September 2011 of Eur 18.4 million and Eur 17.7 million respectively. For the corresponding period last year, the Group and the Company had recorded losses of Eur 6.4 million and Eur 6.8 million respectively.
The operating revenue of the company increased by Eur 16.0 million to reach Eur 208.9 million whereas the operating expenses increased by Eur 24.5 million to reach Eur 211.3 million. The increase in the operating cost is mainly attributable to a 44% average increase in the price of jet fuel (from 236.3 US cents per US gallon to 339.2 US cents per US gallon) and a 7.9% increase in capacity offered.
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Total Shareholders’ Funds for the Company reduced from Eur 119.0 million as at 31 March 2011 to Eur 102.1 million as at 30 September 2011. The resulting net assets per share as at 30 September 2011 was Eur 1.0 (Rs 39.00) as compared to Eur 1.16 (Rs 47.43) as at 31 March 2011.
With the ongoing uncertainty in Europe, the main market of Air Mauritius, the situation remains challenging. High oil prices coupled with the depreciation of the Euro, if they persist, will continue to affect the results of the Company.
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