Madagascar Airlines suspends long-haul flights as financial situation becomes ‘critical’

Madagascar Airlines has declared that its financial situation is “critical” and it intends to implement urgent measures including withdrawing long-haul services and focusing on its domestic network. The carrier emerged in April last year, in the post-pandemic period, but accumulated losses of $25m over the course of nine months in 2022, and states that it expects “approximately the same” for this year. Madagascar Airlines adds that its debt has “significantly worsened”, reaching $36m in the space of 18 months. It attributes the losses to the airline’s attempt to maintain a long-haul operation through wet-lease arrangements, as well as the high price of fuel. The combination of the wet-lease expenditure and the cost of fuel has resulted in monthly losses of $2.8m, it states. “This situation had the effect of triggering a vicious circle,” it adds. “Heavy operating losses on long-haul quickly dried up the company’s cash-flow, leading to the impossibility of paying our suppliers – including for parts and maintenance equipment.” The resulting delays in maintenance have forced a “large part” of the ATR turboprop fleet to become unavailable, it adds: “This operational fragility has caused…numerous delays [and] cancellations.” Madagascar Airlines says an “immediate halt” to the “untenable situation” – including a “temporary” suspension of economically-unviable European long-haul flights – is required. The airline will maintain an international codeshare with French operator Corsair.<br/>