Air Malta is tight-lipped on reports it is expected to slip deeper into the red in the financial year ending March 2015.
Joe Galea, its deputy chief commercial officer, said yesterday the airline’s auditors were verifying the accounts and the results would be communicated at the annual general meeting in October.
“What I can say is that the airline is committed to go from strength to strength,” he said when asked about the predicament after addressing a press conference on Air Malta’s participation in the forthcoming airshow.
Over the weekend, MaltaToday reported that Air Malta insiders were expecting the airline to post losses to the tune of €30 million by March.
If proved correct, it would derail the recovery plan agreed with the EU that presumed the carrier would break even by 2016.
What I can say is that the airline is committed to go from strength to strength
The government agreed a five-year restructuring plan with the European Commission after saving the airline from bankruptcy with a €52 million loan in 2010.
The plan forced Air Malta to almost halve its workforce, reduce the number of planes and cut capacity in exchange for State aid running into millions of euros.
In March 2013 – the airline’s financial year ends in March – it reported an operating loss of €13.7 million throughout 2012, down from €29.7 million in the previous year and €34.1 million in 2011.
When presenting its accounts in October, the airline had reported a profit for the first half of the financial year that started in April 2013.
It faced turbulence in the past year when the contract of British CEO Peter Davies was not renewed. His replacement, Louis Giordimaina, resigned two weeks ago and has not yet been replaced.
The national carrier’s chairmanship also changed in July after Ray Fenech, from the Tumas Group, was replaced by Maria Micallef, who held various senior positions within the Mizzi Organisation.
Ms Micallef has ruled out taking on the role of executive chairman to fill the vacancy made by Mr Giordimaina’s departure.