Air Malta likely to post 'significant' loss
Financial estimates suggested that last year Air Malta suffered a significant loss, mainly due to rising fuel prices and the drop of the sterling, Finance Minister Tonio Fenech said yesterday.
Although the annual financial report for the year ending March 2009 has not yet been concluded, indications are that the airline would be posting a loss.
Mr Fenech said the main culprit was the global international scenario which pushed fuel costs up.
He was speaking during a visit to the offices of the airline's caterers.
He said estimates suggested that any profits made were "wiped out" by the steep drop of the sterling. This affected the sales of the airline on UK routes.
The loss follows a profit made the previous year.
The annual report for the year ending March 2008 showed a turnover of €274 million, even though the profit was a slim €3.7 million. In that year, about €13 million were gained from the disposal of the company's shareholding in the Crown Plaza Hotel, in Tignè.
In the year ending March 2007 the airline had registered a loss of €8 million and that was a considerable improvement on the €16 million loss registered the previous year.
Last year, Air Malta carried 510,000 passengers on flights originating from its Malta base, an increase of 60,000 and a record 15 per cent growth over the previous winter.
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F.Bartolo Snr
Mar 7th 2009, 13:30
Ref.Peter Murrey i understood your comment and yes why not support the banks as well while we are it, i never thought of that, its a good idea i bear that in mind, thanks for the tip.
F.Bartolo. Snr (MALTESE CITIZEN)
Ross Lock
Mar 7th 2009, 11:41
As a dual citizen of Malta who lives in the UK, I find it extremely hard to get back and for to Malta, As Air Malta only operates summer charter flights from my local airport (Cardiff Wales Airport) which is the only international airport servicing Wales. However a new low cost airline has proposed a year round service from Cardiff Wales Airport to luqa Airport. My question is, why is a low cost airline offering to do this route as there is so much demand for it, when Air Malta could do the route and profit from it ?
Mario Muscat
Mar 6th 2009, 23:43
Neve mind what some foreigners say about AirMalta, we as Maltese should support AirMalta and see it through better times. This is the same as employing foreign workers at a reduce wage then the average citizen in Malta, so what happens the Maltese loose their job because for a simple reason the employer pays less wages but not necessary getting value for money, and this is the same with Airmalta, obviously a better carrier and well trianed staff then a cheap airline. SUPPORT AIRMALTA ITS OUR NATIONAL AIRLINE FLYING OUR COLORS.
PETER MURRAY
Mar 6th 2009, 16:37
Yes that's right let's all support Air Malta and the fact that they still today inflict the FUEL SURCHARGE and moreover remain the ONLY airline not to reduce it.It's difficult to support irresponsible and unaccountable behaviour. and action.Next you'll be asking us to support the banks!
Wilfred L Camilleri
Mar 6th 2009, 14:58
Discount airlines like Rayanair are the bane of real airline companies. They offer discounted fares and bring down prices to an unsustainable level and in the process critically hamper the solvency of airline companies that offer value and stability to the airline industry. Historically, most discount airlines eventually fail since they cannot sustain their artificially low fares but in the process they wreak havoc with the industry. Consumers should support stable airline companies like Air Malta, which offers good value for the money and plough money back into the Maltese economy.
Joseph Calleja
Mar 6th 2009, 14:26
Air Malta is going through the same phase like any other international airline. I don't think that there is any other airline in the world making any profit right now. Blame the world economy in general. Air Malta is as good an airline as any other and as soon as the economy improves so will Air Malta profits.
F.Bartolo Snr
Mar 6th 2009, 13:29
If only everyone supports AirMalta instead of the cheapies, then AirMalta will be get through this recession with *Flying Colours* F.Bartolo snr.
T Mifsud
Mar 6th 2009, 11:52
Don't give up Air Malta! Keep on going, keep on flying!