Maldivian still struggling as post-Covid losses mount
The loss in the fourth quarter was 102% higher than in the third quarter of last year. It is also 101% higher than the fourth quarter of 2021.
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By
Ahmed Mizyal
Island Aviation Services (IAS), which operates the national airline Maldivian, has not recovered from losses years after the pandemic and the company's financial situation is deteriorating year by year, according to reports from the Privatisation and Corporatization Board (PCB).
Island Aviation ended the last quarter of 2022 with a loss of MVR 52 million, according to the PCB's financial statements released on Thursday.
The loss in the fourth quarter was 102% higher than in the third quarter of last year. It is also 101% higher than the fourth quarter of 2021.
Quarter 1
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Revenue - MVR 439 million
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Total profit - MVR 105 million
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Loss after tax deductions - MVR 53.5 million
Quarter 2
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Revenue - MVR 413 million
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Total profit - MVR 69 million
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Loss after tax deductions - MVR 81.4 million
Quarter 3
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Revenue - MVR 490 million
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Total profit - MVR 139 million
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Loss after tax deductions - MVR 25.7 million
Quarter 4
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Revenue - MVR 482 million (MVR 425 million in the last quarter of 2021)
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Total profit - MVR 115 million (MVR 113 million in the last quarter of 2021)
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Loss after tax deductions - MVR 52 million (MVR 24.7 million in the last quarter of 2021)
Looking at the financial highlights of IAS in the four quarters of last year, revenue and gross profit increased in the last quarter compared to the first quarter and losses were reduced by MVR 1.5 million.
Last year, IAS's financial position improved in the third quarter. IAS posted a loss of MVR 52 million after taxes in the quarter, although it narrowed its loss to MVR 25.7 million in the quarter.
The PCB report noted that:
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Revenue from domestic and regional services declined 2% compared to the last quarter of 2021 and 24% compared to the third quarter of last year
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Ground handling revenue increased by MVR 5.6 million and seaplane operations revenue by MVR 16.5 million in the last quarter of last year.
The PCB report noted that total revenue in the last quarter declined by 17% compared to the third quarter of last year.
The main reasons for this include the cost of chartering aircrafts by IAS and high airport charges.
The company's operating expenses also increased by MVR 30.7 million in the last quarter of last year. With that, the company’s operating losses in the last quarter increased 95% compared to the third quarter.
The main reason for the increase in operating expenses was:
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Increased costs of salaries and allowances
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Compared to the third quarter of last year, IAS spent an additional MVR 10.6 million
However, IAS received an additional MVR 5.6 million in other income in the last quarter.
IAS ended the last quarter of 2022 with a loss of MVR 52 million due to high operating expenses against the decline in revenue. Another reason for the loss was a 2% increase in interest and other financing costs.
