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Air Mauritius FY loss narrows

Published 06/17/2010, 11:56 AM
Updated 06/17/2010, 11:59 AM

PORT-LOUIS, June 17 (Reuters) - Air Mauritius reported a net loss of 6 million euros ($7.4 million) for the year to March 31, improved from a loss of 85.5 million a year earlier thanks in part to improved fuel hedging.

Air Mauritius said it remained vulnerable to the crisis in the euro zone and to the fact that its costs are mostly denominated in dollars but its revenue in euros.

"This reflects the persistent impact of the global crisis on the airline and tourism industries. However, this year net results constitute a significant improvement," Chief Executive Officer Manoj Ujoodha said in a statement.

Operating profit -- excluding hedge costs -- rose to 32.6 million euros from a 15.3 million euro profit in the previous year. Its fuel hedge pay out stood at 38.5 million euros, compared with a 100.5 million euros a year before.

The airline said the various marketing campaigns undertaken had led to a record load factor of 80.6 percent compared with 74.6 percent a year before.

The Indian Ocean island is a popular holiday destination, but the European economic slowdown has weighed heavily on its tourism industry. (Reporting by Jean Paul Arouff; editing by David Lewis and Andrew Callus)

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