Annual Report 2015-2016


Air Mauritius Group posts a net profit of Eur 16.5 million

For the year ended 31 March 2016, the Group and the Company recorded profits of Eur 16.5 million and Eur 15.4 million respectively as compared to losses of Eur 23.6 million and Eur 23.7 million for the previous year.

The results for the year under review have been positively impacted by lower oil prices and an increase in passengers but tempered by the depreciation of the Euro, hedge payouts and decrease in yield. The Brent oil price which averaged USD 90/BL during 2014/15, dropped to an average of USD 50/BL for 2015/16. However, the EUR/USD parity moved down from an average of 1.27 for the financial year 2014/15 to an average of 1.10 for the financial year 2015/16.

As far as operations of the Company are concerned, the number of passengers carried went up by 9.4% to reach a record level of 1,499,411.The number of seats offered increased by 3.4% and the Passenger Load Factor increased from 73.7% to 78.7%. Operating revenue increased by 5.4% from Eur 463.1 million to Eur 488.3 million whereas the operating expenses decreased by 1.8% to reach Eur 443.9 million. Consequently, the gross profit increased from Eur 10.9 million to Eur 44.4 million.

The results would have been significantly better without the fuel hedge payouts of Eur 26.6 million effected as a result of contracts entered into in 2014.

On 6 July 2015, a third destination in mainland China, Chengdu, was added to the network with a once weekly A340-300 flight. Furthermore, with the view to developing Singapore as the hub in Far East Asia to support the Air Corridor project initiated by Government, the Company introduced direct operations to Singapore on the basis of 3 weekly frequencies on the routing Mauritius-Singapore-Kuala Lumpur and vice versa, as from 11 March 2016.

Abridged Statements

Shareholders' Funds

Total Shareholders’ Funds for the Company increased significantly from Eur 42.9 million as at 31 March 2015 to Eur 82.5 million as at 31 March 2016.

As a result, the net assets per share almost doubled from Eur 0.42 (Rs 16.48) as at 31 March 2015 to Eur 0.81 (Rs 32.37) as at 31 March 2016.


The Company has added 2 new destinations, namely Maputo and Dar es Salaam in May 2016 and operations for Guangzhou will start in July 2016 to further improve connectivity between Africa and Asia. Moreover, a third ATR72-500 will join the fleet in June 2016 to further enhance the services to Rodrigues and Reunion.

An intensification of competition across its network is being witnessed by the Company as the result of further air access granted to new sixth freedom carriers, low cost and seasonal charter carriers. This is resulting to an oversupply of seat/cargo capacity in an already price sensitive market entailing further yield dilution.

The performance of the Company compares quite favorably with industry trends recorded by IATA for the year under review. However, preventive and proactive measures such as a review of the current business model, are being taken by the Company to continue to improve its performance during the financial year 2016/17. The Company is fully committed in achieving the objectives for the next financial year.