Air Mauritius Ltd., sub-Saharan Africa’s fourth-biggest airline, returned to profit in the second quarter and said a reorganization plan would help it deliver a full-year profit in fiscal 2014.
Net income in the three months through September was 1.27 million euros ($1.62 million), compared with a loss of 7.69 million euros a year earlier, according to a statement handed to reporters today in Port Louis, the Mauritian capital. Revenue declined 3 percent to 112.9 million euros.
The profit is “an encouraging step forward” for the airline and vindication of a reorganization plan put in place by management, said Chief Executive Officer Andre Viljoen. The third quarter, which coincides with the tourism high season in Mauritius, will probably deliver further gains and help offset a loss in the first three months of the financial year, he said.
Air Mauritius is cutting long-haul routes to Europe and adding additional flights to Africa and Asia as part of an eight-step plan for the company to report an annual profit by fiscal year 2014. The strategy also includes the acquisition of fuel-efficient aircraft.
Revenue for the six months through September advanced to 217.8 million euros from 209.9 million euros, according to the statement. First-half losses were cut to 9 million euros from 19.3 million euros.
Air Mauritius shares declined 38 percent this year, compared with a 12 percent drop in the 40-member SEMDEX guage. The stock was unchanged at 10 rupees by the 1:30 p.m. close, with 24,780 units traded, or almost twice the three-month daily average.