Source: Reuters Author: Richard Lough 06/18/2009
Subject Concerned: Airlines Aviation Fuel
Air Mauritius said on June 18 that it had made a loss of EUR84.34 million (US$117.6 million) for the financial year ended in March mainly due to expensive oil prices and the global economic scenario.
The national carrier for the Indian Ocean island said it made EUR16.6 million profit in the previous year.
"The company accounts for the overall period bear testament to the consequences of the economic crisis on both the airline and tourism sectors, with a net loss of EUR84.34 million," it said in a statement.
The palm-fringed island, best known for its white sands and luxury spas, has suffered as recession buffets its core European tourism markets.
More than half the loss -- EUR46.13 million -- came after the airline hedged its fuel bill at US$105 per barrel as the price of oil surged toward the US$140 barrier.
"The brutal fall (in the price of oil) during the first few months of the financial crisis inversely increased our petrol bill," the company said.
Passenger numbers compounded the company's woes, falling 9.2 percent to 1.19 million during the period.
Air Mauritius said it was hard to forecast performance in the 2009/2010 financial year.