Air Mauritius: Financial Year 01 April 2016 to 31 March 2017 Third Quarter -1 October to 31 December

Net results (EUR million)
Air Mauritius today reported a profit of EUR 12.6 million (Rs 490.1 million) (for the quarter ended 31st December 2017), which is the highest for the last five years. This represents a 20% increase over last year's results for the corresponding period which stood at EUR 10.5 million (Rs 420 million).

Shareholders' equity is up by 43% to reach EUR 117 million (Rs 4.7 billion) at 31 December 2017, while net asset per share stands at Rs 43.91, versus Rs 32.37 last year, an increase of 36% from last year.

All indicators are up, except yield for the quarter

The number of seats offered has reached 586,002, up by 7.5%. Load Factor has also improved to 81.1%, from 80.6%. Revenues grew to EUR 135 million euros (Rs 5.3 billion) representing an improvement of 3% from last year.

The results were dampened by Yield which dropped by 6%, in line with the global trend and reflecting the challenges resulting from overcapacity, tough competition and economic challenges encountered in some key markets.

Profit stands at a record-high of EUR 28.1 million (Rs 1.1 billion) for the first nine months of the financial year.

Boosted by the strong third quarter results, profits for the first nine months of the financial year peak at an all-time high of EUR 28.1 million.

The number of seats offered stood at 1,593,898 representing an increase of 6.7%. Number of passengers carried reached 1,210,145, up 8.4%; while Load Factor rose to 80.8% from 78.9%. Revenues increased by 2% to reach EUR 375.9 million (Rs 14.8 billion). Operating costs decreased to EUR 332.8 million representing a year on year improvement of 2.2%. This reflects the drop in the price of fuel and a better management of costs during the first nine months of the financial year.

Outlook for the financial year and ahead
Air Mauritius still operates in an extremely fierce competitive environment, with several persistent challenges, including: rising fuel price, volatile exchange rates, and constantly evolving market conditions. The strong results reported today gives the company the required additional financial resources to invest in its development plans, but yet still highlights the need to be cautious given the volatile nature of the operating environment.

Within a reinforced governance structure, actions initiated by the Board of Directors in close collaboration with the management team, has given the company the means to turnaround the business sustainably, in spite of numerous challenges.

This turnaround is also attributable to a more judicious cost management. The improved financial position better equips the company for its future which is starting to shape up this year as the Company prepares to celebrate its 50th anniversary. This important milestone will be a unique opportunity for the airline to recall its success stories, bolster its status as the national carrier of the country, and complete a number of landmark projects.

The main highlight for the end of the year will be the arrival of two new Airbus A350-900 taking the Air Mauritius fleet into a new era. These new generation aircraft will substantially step up the level of comfort offered to passengers, while delivering better operational efficiency. The upgrades include new seats, a new on-board entertainment system and, for the first time, state-of-the-art on-board internet connectivity.

In the same stride, Air Mauritius will soon announce an accelerated fleet renewal programme. A revamp of cabin interiors of the existing fleet will be executed over an 18-month period and is planned to be completed in June 2018. The airline's existing aircraft will thus also be equipped with new seats, a new entertainment programme and facilities comparable to that of the A350-900. These substantial investments are imperatives if the airline is to meet customer expectations and consolidate its status as the leading airline of the region.

Mauritius is preparing to celebrate its 50 years of independence next year and its 25 years as a Republic this year. Hence, Air Mauritius, which was incorporated just a few months before independence, is celebrating 50 years of service to the nation. It is with this proud legacy, that the National Airline of Mauritius is living through these historic moments as it looks to the future with confidence.