Air Malta reported an operating profit of €1.2 million for the year ended March 2018, in stark contrast to the financial results last year, when it reported a €10.8 million loss.
Taking into account non-recurring items, including the payment of the early retirement schemes and the gain on the disposal of landing rights, the airline registered a profit of €15.7 million.
During Air Malta’s annual general meeting, the airline gave an overview of its financial figures for the year ended in March 2018 and an outlook for the coming year.
During the year under review Air Malta’s operating revenue increased by €5.3 million to €197.5 million, mainly driven by 11 per cent more passengers, 8.5 per cent more flights, and a 2.8 per cent improvement in seat load factor.
Total operating costs decreased by €6.5 million mainly attributed to a decrease in fuel, aircraft leases and maintenance costs.
During a press briefing announcing the results, Air Malta’s Chief Financial Officer, Omar Bonello attributed these positive performance to better aircraft utilisation, the implementation of a new sales strategy, the investments in IT technology, the signing of the all collective agreements aimed to give a strong base for increased productivity, flexibility and industrial peace stability, and the negotiation of more favourable terms with the airline’s suppliers.
Air Malta’s Chairman Dr Charles Mangion added that in spite of these positive results, Air Malta cannot rest on our laurels. “A lot more needs to be done to get the company out of the woods and on firm sustainable ground. Our growth strategy is underway and is being executed in an extremely competitive environment and a continually changing aviation scenario. The main challenge remains for Air Malta is on how fast it can adapt successfully to change.”
Whilst addressing the conference CEO Capt. Clifford Chetcuti said, “We are seeing the results of the transition to a strategy of growth and credit must be given to all the efforts afforded by the whole team at Air Malta. Aviation is a highly competitive industry dictated by thin margins, high fixed costs and large capital investments. Despite all these business pressures, Air Malta has managed to face these challenges, resulting in its being awarded the CAPA turn around airline of the year in 2018.”
The airline’s CEO added, “This is not the time though to become complacent. Whilst there are challenges with fluctuating fuel prices and increased competitive pressures, we have shown that growth is still achievable.”