Air Mauritius reported (14-Feb-2019) operating performance for Q3FY2019 and the period Apr-2018 to Dec-2018 was impacted by competition and rising costs. The carrier had to "modulate" capacity in Q3FY2019, resulting in a decrease in the number of seats offered and passenger numbers. Revenue remained stable overall, with a decrease in Q3FY2019 and an increase over the nine months ended Dec-2018. The carrier noted the following factors which impacted results for the nine months ended Dec-2018:
- A 38% year-on-year increase in the price of brent crude oil to USD74 per barrel;
- A 16.3% increase in operating costs to EUR404 million:
- Fuel costs increased 29% to EUR126 million (31% of total costs);
- Aircraft costs increased 21% to EUR110.6 million (27%) due to fleet modernisation, greater leasing and maintenance costs and increased depreciation;
- Staff costs increased 15% to EUR64.3 million (16%) due to the settlement of MoUs outstanding since 2014;
- Competition was "unprecedented", with a 29% increase in foreign airline capacity to 2.88 million seats over the three years from FY2015/16 to FY2018/19. The airline reported competition from "mega carriers" and charter/seasonal operators during peak seasons.
The airline said the results also reflect "crucial investments... to secure the company's long term economic sustainability in an environment that is becoming increasingly competitive". [more - original PR]