Air Austral posts full-year net loss on ‘penalizing’ external factors

Reunion-based Air Austral has posted a E4.5m full-year net loss, its first loss in five years. The airline cited stiff competition, higher fuel prices, adverse exchange rates, Boeing 787 groundings and public protests for the results. Air Austral said the results for the year ended March 31, came against a “complex economic” and geopolitical backdrop, further impacted by the grounding of its two Boeing 787s because of Rolls-Royce Trent 1000 blade-wear issues. The mandatory 787 service-bulletin grounding meant Air Austral has had to charter in capacity, “with significant negative consequences” to its brand image. Then, in November, the “yellow vest” public-protest movement caused a slowdown in bookings, impacting load factors, placing a further strain on the airline’s results. “After five years of profits—and as forecast—the 2018/2019 financial year ended with a negative operating result of E2.7m and a net loss after tax of E4.51m,” Air Austral said.<br/>