Unaudited Interim Financial Statements as at 30 September 2018

Total passengers carried during the quarter increased by 8.8 % to 464,689 as compared to 426,910 passengers carried during the quarter ended 30 September 2017 . The number o f seats offered increased by 6.5 % and the Passenger Load Factor in creased from 80. 7% to 81.3 %. However, passenger yield witnessed a drop of 4.3% as a result of acute competition.

Operating revenue of the Company increased by 7.0% from Eur 135.9 million to Eur 145.4 million. However, the oper ating expenses went up by 23.3% to reach Eur 141.2 million mainly on account of rising fuel prices (+51 %), increase in operations, labour cost s and lease of new aircraft .

For the quarter ended 30 September 2018 , both the Group and the Company recorded losses of Eur 2.8 million . For the corresponding quarter of last year, the Group and the Company had recorded profits of Eur 11.8 million and Eur 11.6 million respectively.

Air Mauritius Group and Company results for the half year ended 30 September 201 8

The number of passengers carried went up by 7.1 % to reach 867,733 as compared to 810,239 during the half year ended 30 September 2017 . Seat capacity increased by 5.9% from 1,078,297 to 1,141,569 , resulting in the Passenger Load Factor remaining unchanged at 79.3% . However, the passenger yield witnessed a drop of 4.7%. Operating revenue of the Company increased by 5.9 % from Eur 251.8 million to Eur 266.7 million. However, the oper ating expenses increased by 21.6% to reach Eur 272.0 million mainly on account of rising fuel prices (+44%), increase in operations, labour costs and lease of new aircraft .

For the half year ended 30 September 2018 the Group and the Company posted losses of Eur 17.7 million and Eur 17.6 million respectively. For the corresponding period last year, the Group and the Company had recorded profits of Eur 6.6 million and Eur 6.3 million respectively .

Shareholders' Funds

Total Shareholders' Funds for the Company decreased from Eur 87.9 million as at 31 March 2018 to Eur 80.5 million as at 30 September 2018. The resulting net assets per share as at 30 September 2018 was Eur 0.79 (Rs 31.40 ) as compared to Eur 0.86 (Rs 35.50) as at 31 March 2018. The drop in the Shareholders' Funds is mainly attributable to the loss for the period, mitigated by a positive movement in cash flow hedges.

Outlook

The prevailing high fuel prices , volatile exchange rates and increased competition will continue to impact the results .

The Company is maintaining its growth plans while constantly adapting to changes in market conditions. The major investments in aircraft, product and service have enabled the airline to better respond to growing customer expectations and have been positively acknowledged by the market.

The Company is also engaged in a Business Model review to ensure its sustainability with focus on the development of H ub Mauritius.