The year 2012/13 has been another challenging year for airlines. Oil prices have remained high, averaging USD 112 per barrel. The global economic situation has further deteriorated as the recession in Europe has proven to be deeper than expected. These two factors have continued to negatively impact on the financial results of many airlines.
Air Mauritius Group and Company results for the year
The Group and the Company recorded losses for the year ended 31 March 2013 of Euro 2.5 million and Euro 3.6 million respectively compared to losses of Euro 29.4 million and Euro 29.2 million for the previous year.
During the year, the Company started implementing its announced Recovery Plan which saw a realignment of its network. The direct significant loss making flights were suspended, whereas additional frequencies were added on routes with greater potential for growth.
The above changes to the network brought an improvement to passenger load factor from 77.1% to 78.9%. The operating revenue decreased marginally from Eur 450.9 million to Eur 450.0 million whereas the operating cost witnessed a larger decrease from Eur 450.4 million to Eur 430.7 million as planned.
Shareholders' Funds
Total Shareholder's Funds for the Company decreased from Euro 83.7 million as at 31 March 2012 to Euro 77.1 million as at 31 March 2013. The resulting net assets per share as at 31 March 2013 was Euro 0.75 (Rs 29.94) as compared to Euro 0.82 (Rs 31.63) as at 31 March 2012.
Outlook
The gradual implementation of the announced Recovery Plan is impacting positively on the performance of the Company. As per the plan, it is expected that the Company will return back on the path of profitability by the end of the financial year 2013/14 based on current operating conditions. The Company remains mobilised and fully committed in achieving the objectives for the next financial year.