Air Mauritius Faces More Losses – Rs 268 Million Lost From April To June

Air Mauritius is yet having to manage losses worth millions. For the trimester lasting from April to June of 2014, it has lost 8.1 million euros, amounting to Rs 268 million. However, the situation has improved for the airline company, as compared to the numbers of last year during the same period. The first trimester of financial year 2014 might have started off with net losses for the company, but it is not to be ignored that the company was recently accredited with a 4-star rating by Skytrax.

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The national airline company, Air Mauritius, has announced that the first trimester of any financial year is usually marked by net losses. This year has even witnessed a slight improvement as compared to the losses of last year, which was at 8.1 million euros. From April to June of this year which is the first trimester of the financial year of 2014, the company has incurred losses worth 6.7 million euros (Rs 268 million). While the tourist sector has been boosted during the April-June period, the profits have not been able to outweigh the negative effects of the rise in fuel price.

The justification the company put forward is that it is currently having to deal with operational costs. The company has recently ordered new aircrafts to add to its fleet. It had also aimed at enhancing its quality of service. Also, freight expenses have increased by 15.5 % as 5277 more seats have been proposed this year. Furthermore, the increase in the price of fuel by 6.8 % has exacerbated its troubles. On top of this, the disadvantage that the Mauritian currency entails on the international market only makes it worse.

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