Air Malta Reports Considerable Improvement in Half Year Operating Results

This is the first time in four years that an operational profit has been registered in this period. Both passenger and cargo revenue were the main growth factors contributing to an increase of €2 million over the corresponding period last year. Compared to the airline's budget, revenue has increased by €4.7 million.

These results were achieved notwithstanding a 10% reduction in seat capacity. During this period Air Malta carried 1.05 million passengers, a slight reduction over last year (HY2011: 1.1 million). The trend in improving the passenger seat factor continued with an increase in this period of two percentage points to 79%.

Costs were also reduced during this period in various areas including a decrease in fuel (€3.2 million) and personnel (€2.2 million) costs. Air Malta Chief Executive Peter Davies said, "These figures are the result of the efforts we have put into the restructuring of Air Malta. The concerted effort has reversed the trend of the last years and finally we are reaping financial gains."

On a more cautionary note, Davies added, "The second half of the year is nonetheless undoubtedly tougher due to the seasonality effects on our destination. We have to do a lot more to cut costs. Although we have reduced expenditure by €6.4million over the same period last year, we still have a substantial cost element which we need to tackle. It is imperative that we re-negotiate terms with our major suppliers so that we continue reducing overheads and losses. Not only, we need to start offering our passengers an improved and value for money customer experience in-line with today's customer trends and service levels. This is not only imperative for us but also for our partner suppliers whose business is also tied with the restructuring and the return to profitability of Air Malta. "