AIR MAURITIUS LIMITED

FINANCIAL HIGHLIGHTS

SIX MONTHS ENDED 30TH SEPTEMBER 2006

 

Air Mauritius Group and Company performance for the half year was impacted by the slow down in traffic due to the outbreak of Chikungunya at the end of last year.  Bookings out of the European markets, especially in the first quarter, were lower than budget due to cancellations in April and May. Full recovery of budgeted passengers carried was not achieved in the remaining months up to September 2006 which coincided with the company’s low season period.

 

At the same time, overall yields continued to decline due to trends in the industry and partly due to promotions which were put in place to boost traffic. The company also continued to experience the impact of high jet fuel costs with the price of jet fuel increasing by 22.8% when compared with the same period in the previous year. As a result, the Group loss for the half-year at Euro 13.8 million was more pronounced when compared with the loss of Euro 5.4 million for the same period in 2005.

 

Passenger revenue for the period dropped by Euro 6.9 million when compared with the previous year, mainly due to the setbacks suffered in the European markets. The growth achieved in other markets to Africa, Asia and Australia was not enough to cover the impact.

 

However, overall operating revenues for the Group and the Company were only slightly lower than the previous year, due to contribution from cargo and other revenues. Operating costs on the other hand increased by 2.3%.

 

Outlook

 

The first half year is a traditionally low season period for the airline, which carries significant traffic in the remaining months from October to the end of the financial year.

 

The Company is currently facing multiple challenges, namely deteriorating yields, rising costs and increased competition. These are being addressed through the implementation of the Transformation Programme. The preliminary results thereof, combined with a better market outlook for the second half of the financial year, are expected to positively impact on the full year results.

 

 

Airline Activities

 

Key metrics and statistics for airline operations reflect the slow down in traffic for the period, when compared to the previous year. These are as follows:

 

·       Turnover decreased by 0.3%, from Euro 182.8 million to Euro 182.3 million.

 

·       The number of passengers carried decreased by 1,312 from 533,278 to 531,966.

 

·          Passenger Load Factor slightly reduced by 0.2 point from 74.7% to 74.5%.

 

·          Seats offered went up by 2.8% to reach 737,783.

 

·           Freight uplifted rose by 2.9% from 18,001 tons to 18,521 tons.

 

This has been a period of consolidation for the company, when key restructuring decisions and investments in aircraft continue to be made. Shareholders’ funds for the Company decreased to Euro 186.8 million resulting in a net worth per share of Euro 1.83 compared to Euro 1.91 in the previous year.

 

Bank Deposits & Cash Balances amounted to Euro 24.4 million at 30 September 2006.  As at 30 September 2006, a total amount of USD 40.2 million has been disbursed as pre-delivery payments for the acquisition of the new aircraft.  The amount of blocked funds in Seychelles has been reduced to SCR 15.9 million (Euro 1.2 million) following a loan of SCR 15 million granted to a hotel company with repayments to be made in US dollars. A provision of 50% of the remaining blocked funds continues to be made in the accounts.

 

The company has recently taken delivery of two brand new A340-300E aircraft in replacement of the two B767-200ER aircraft, which were sold in April 06 and leased back till the end of this financial year.  The company has also disposed of its two ATR42-500 aircraft and replaced them with an ATR 72-500 aircraft to be used for regional operations. These decisions have brought increased efficiency to the company’s schedules as well as reductions in operating costs.