Friday, October 16, 2015

Air Malta records €16.4 million loss

Audited figures announced during today’s Air Malta AGM show that the airline posted a loss of €16.4 million for the year ending March 2015 and is set to reduce its losses to €4 million by 2016.Now in its fifth year of the European Commission's restructuring plan, the company was supposed to break even and return to profitability by next year. 

But an optimistic chairperson Ms M. Micallef said that in its final year of the European Commission's restructuring plan, the company kept its losses down to €16.4 million despite the closure of the Libya route and a drastic drop in passengers from Russia following the Ukrainian crisis. The losses from the Libyan and Russian markets amount to some €10 million but this has been offset by savings in other areas, including fuel costs. 

Results for the first six months of the current financial year show that the company has increased its profits by €8.7 million when compared to the same period of the previous year. If these results are maintained the airline is in line to reduce its losses to €4 million.

Noting the company's "economies of scale disadvantage" she said a strategic alliance would "change all this" adding that Air Malta has the potential to become part of a wider network with the clout to command prices. "Such an alliance would feed our network and ensure the much required increase in passengers and revenue," she said. (Source: maltatoday.com, 15-Oct-2015)