Air Mauritius Swings To Full-Year Profit

June 13, 2016

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Air Mauritius swung to a pretax profit of EUR€16.62 million in the year ended March 31 from a loss of EUR€23.57 million a year earlier helped by lower oil prices and higher passenger numbers.

"The results for the year under review have been positively impacted by lower oil prices and an increase in passengers but tempered by the depreciation of the euro, hedge payouts and a decrease in yield," the airline said in a statement.

The Indian Ocean island's national carrier said its passenger numbers grew 10 percent to 1,499,411.

In May it added two new destinations, Maputo and Dar es Salaam, and is expected to start operations to Guangzhou, China, in July.

Revenue rose to EUR€490 million from EUR€465 million.

It said competition had increased due to more airlines entering Mauritius, including low cost and seasonal charter carriers.

"This is resulting to an oversupply of seat/cargo capacity in an already price sensitive market entailing further yield dilution," the airline said.

(Reuters)