INTERIM FINANCIAL STATEMENTS AS AT 31 DECEMBER 2011
The Airline Industry continues to face major setbacks. Many airlines have reported significant losses. This 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 European economies. The industry as a whole is poised to take drastic measures to cope with the crisis. It is against this backdrop that Air Mauritius announces its Financial Results for the 3rd Quarter and nine months ended 31 December 2011.
For the quarter ended 31 December 2011, the Group and the Company recorded losses of Eur 2.8 million and Eur 3.2 million respectively compared to profits of Eur 12.6 million and Eur 12.2 million for the comparative period of last year.
Seat capacity was increased by 4.6% (21,611 additional seats) in order to cater for the projected growth in tourism in line with stakeholders expectations. However, the actual number of passengers carried only increased by 1.7% (+ 6,315 passengers) to reach 369,964 as compared to 363,649 passengers carried during the quarter ended 31 December 2010. Consequently, the passenger load factor dropped from 82.9% to 79.7%. Cargo traffic decreased by 3.0%.
Operating expenses of the Company increased by Euro 18.9 million (+18.2%) mainly on account of a 33% average increase in the price of jet fuel (from 253 US cents per US gallon to 335 US cents per US gallon) and increase in capacity offered. However, the operating revenue of the Company only witnessed an increase of Euro 3.4 million
The Group and the Company recorded losses for the nine months ended 31 December 2011 of Eur 21.2 million and Eur 20.9 million respectively. For the corresponding period last year, the Group and the Company had recorded profits of Eur 6.2 million and Eur 5.3 million respectively.
The operating expenses increased by Eur 40.6 million to reach Eur 331.3 million. This increase is mainly attributable to a 39% average increase in the price of jet fuel (from 242 US cents per US gallon to 338 US cents per US gallon) and increase in capacity offered. The operating revenue of the company increased by Eur 17.5 million to reach Eur 334.9 million.
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Total Shareholders’ Funds for the Company reduced from Eur 119.0 million as at 31 March 2011 to Eur 99.5 million as at 31 December 2011. The resulting net assets per share as at 31 December 2011 was Eur 0.97 (Rs 36.92) as compared to Eur 1.16 (Rs 47.43) as at 31 March 2011.
With the Eurozone Sovereign debt crisis and economic turmoil in the main market serviced by Air Mauritius, the situation remains highly challenging. High oil prices, continuous pressure on yield and depreciation of the Euro, will continue to severely affect the results of the Company. As per the cautionary announcement issued today, the Board is closely monitoring the situation to ensure that the Company’s long term interests are preserved. Measures to optimize the current network, reduce costs and improve the existing organizational structure are being implemented.
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