Air Mauritius Ltd. (AML), sub-Saharan Africa’s fourth-biggest airline, posted a third-quarter loss and said high oil prices, the crisis in the euro area and the euro’s depreciation will “severely affect” results.
“The current situation is worse” than initial forecasts, the company said in a statement handed to reporters today in Port Louis, the capital. Results for the 12 months through March will be “significantly impacted,” it said.
Air Mauritius reported a loss of 2.8 million euros ($3.69 million) in the three months through December, compared with a profit of 12.6 million euros a year earlier. Operating costs jumped 20 percent to 123 million euros, as revenue grew 3.6 percent to 129.5 million euros, it said.
The company is carrying out a strategic review of the business and will implement measures, including halting routes to European destinations including Geneva and Frankfurt, and selling one of its aircraft to return the company to profit by the 2013-14 fiscal year, acting Chief Executive Officer Andre Viljoen told reporters in Port Louis today.
To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at firstname.lastname@example.org.