Air Mauritius has swung to a full-year loss, hit by higher fuel costs, increased competition, fewer visitors to the Indian Ocean island during the euro zone crisis, and foreign exchange woes.
"If external factors do not deteriorate, the airline is expected to post considerably lower losses at the end of the (current) financial year," the carrier said on Tuesday.
It made a EUR€29.2 million (USD$37 million) loss in the year to March, having made an EUR€11.1 million profit in 2010/11. Fuel costs rose a third to EUR€47.8 million.
"The results... are a reflection of the daunting challenges faced by the airline industry over the past year," chairman Kamal Taposeea said.