Air Mauritius Reports a Net Loss of Rs 1 Billion for the Financial Year

Air Mauritius is facing significant financial challenges, with preliminary figures indicating a net loss of Rs 1 billion for the financial year ending June 30, 2024. These unaudited figures, obtained by Le Défi Quotidien, provide insights into the airline’s performance amid ongoing delays in the publication of its audited accounts. The company has requested multiple extensions, citing that the finalization of its audited statements is not yet complete.

Although these delays are legally permissible, they raise concerns about the airline’s financial stability, particularly as it emerged from voluntary administration in September 2021.

The financial data compare results for the periods ending in June 2024 and March 2024, revealing mixed outcomes.

For the year ending June 2024, Air Mauritius reported total revenues of €606.9 million (approximately Rs 29.8 billion), up from €538.9 million (Rs 26.5 billion) in the previous year.

This increase in revenue is countered by a sharp rise in operational expenses, which ballooned to €600.5 million (Rs 29.5 billion).

As a result, the airline’s gross profit plummeted to €6.5 million (Rs 322.3 million) compared to €57.5 million (Rs 2.8 billion) in the prior period.

Additional costs, including administrative expenses of €36.4 million (Rs 1.8 billion) and an impairment loss on trade and other receivables totaling €3.7 million (Rs 184 million), further exacerbated the financial situation.

The overall balance sheet for the year ended June 2024 indicates a net loss of €21.4 million (Rs 1.05 billion), contrasting sharply with a net profit of €48 million (Rs 2.36 billion) recorded in the previous financial year.

However, it is important to note that Air Mauritius officially concludes its financial year in March.

For the period ending March 2024, the airline reported total revenues of €599.3 million (Rs 29.4 billion), an increase from €506 million (Rs 24.8 billion) in the previous year.

Operational expenses for this period amounted to €569.2 million (Rs 27.9 billion), resulting in a modest gross profit of €30.1 million (Rs 1.47 billion).

The net profit for this timeframe stood at €1.99 million (Rs 97.6 million), which is a decline from the net profit of €5.7 million (Rs 280.1 million) seen in the prior year.

When considering the financial year as defined by Air Mauritius, from April 1, 2023, to March 31, 2024, the airline realized profits of Rs 97.7 million.

In contrast, if the financial year is viewed as concluding in June 2024, the company faces losses of Rs 1 billion.

The contrasting financial narratives underscore the ongoing volatility within Air Mauritius as it navigates post-pandemic recovery and fluctuating operational costs.

Source: Defi Media