Air Malta halved its losses during the financial year ending March 2014 and is projecting to maintain its position for the year ending March 2015, despite several major setbacks such as the closure of the Libyan routes and increased competition in the peak summer months.
Audited figures announced during today’s Air Malta Annual General Meeting showed that the airline posted a loss of €16 million for the year ending March 2014, compared to €31 million registered during the financial year ending March 2013.
The numbers show that Air Malta is moving in the right direction according to its Restructuring Plan, although it did not manage to reach the more ambitious annual targets of a €15 million loss in 2013 and a profit in 2014.
Air Malta chairperson Maria Micallef said the current financial year had been directly hit by the closure of the Libyan routes (losing the airline around €1 million per month, including incremental revenue from transit business) and a 20% increase in seat capacity of other airlines in the peak months.
Meanwhile, newly-appointed CEO Philip Micallef outlined his vision for the airline and highlighted a number of initiatives being taken to bring the airline to profitability by 2016. “One of the key missions of this new management team is to work much more closely with Malta Tourism Authority and other key stakeholders” he said. Similar joint initiatives are happening with Malta Hotels and Restaurants Association (MHRA) and Federated Association of Travel Tourism Agents (FATTA).
Mr Micallef said Air Malta now needed to improve its IT systems to facilitate customer experience and increase revenue by providing a more attractive pricing system for passengers.