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.