Air Mauritius posts 9-month net loss as competition, costs increase
Air Mauritius reported a E25.4m (US$28.6m) net loss for the 9-month period ending Dec 31, 2018, down from a E10m net profit for the year-ago period. The carrier cited growing competition and increasing costs for the results. “It’s time to look for alternatives. This business model is no longer viable,” Air Mauritius board chairman Arjoon Suddhoo said Feb 14. While revenue for the period increased 1.7% year-over-year to E395.4m, from E388.7m a year ago, operating costs rose 16.3% to E404m, from E347.6m. A 38% YOY increase in the price of Brent crude contributed to a 29% rise in fuel costs, to E126m, the carrier said. Aircraft costs rose 21% to E110.6m because of fleet modernisation, including the phase-in of 2 Airbus A350-900s, resulting in higher leasing and maintenance costs. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-02-20/unaligned/air-mauritius-posts-9-month-net-loss-as-competition-costs-increase
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Air Mauritius posts 9-month net loss as competition, costs increase
Air Mauritius reported a E25.4m (US$28.6m) net loss for the 9-month period ending Dec 31, 2018, down from a E10m net profit for the year-ago period. The carrier cited growing competition and increasing costs for the results. “It’s time to look for alternatives. This business model is no longer viable,” Air Mauritius board chairman Arjoon Suddhoo said Feb 14. While revenue for the period increased 1.7% year-over-year to E395.4m, from E388.7m a year ago, operating costs rose 16.3% to E404m, from E347.6m. A 38% YOY increase in the price of Brent crude contributed to a 29% rise in fuel costs, to E126m, the carrier said. Aircraft costs rose 21% to E110.6m because of fleet modernisation, including the phase-in of 2 Airbus A350-900s, resulting in higher leasing and maintenance costs. <br/>
