April 24 (Bloomberg) -- Air Mauritius Ltd., sub-Saharan Africa’s fourth-largest airline, fell the most in almost two weeks after announcing a cut in long-haul flights.
The stock retreated 2.5 percent to 11.60 rupees at the close in Port Louis, the steepest single-day slide since April 11, extending the airline’s decline this year to 28 percent, according to data compiled by Bloomberg. Air Mauritius is the second-worst performing stock in the SEMDEX gauge this year.
Flights to Milan, Sydney, Melbourne, Frankfurt, Munich, Geneva and Durban will be suspended this year, Air Mauritius said in an e-mailed statement yesterday. The reshuffling is part of a restructuring plan to enable the airline to swing back into profit during its fiscal year through March 2014.
“The decline is most probably attributable to the fact that they are cutting long-haul flights,” said Kishen Nadassen, a senior research analyst at Cim Stockbrokers Ltd., in a phone interview today.
Frequency of short- and medium-haul flights will be increased “mainly around the Indian Ocean rim and emerging markets” resulting in a 3 percent rise in seat capacity during fiscal year 2013, according to the statement.
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