Air Malta Reports Results of 1st Quarter Financial Year 2013/14
Air Malta today announced its 1st quarter (Apr-Jun 2013) results that confirm steady financial and operational progress. During this period the airline has halved its operating loss, increased revenue, increased passenger figures whilst maintaining a steady seat load factor over the same period last year.
The national airline has reduced the operating loss for the quarter to €3.3 million (Q1 FY2012/13: €6.1 million loss, Q1 FY2011/12: €10 million loss). The net result after restructuring costs (largely one-time charges) and interest costs is a loss of €4.9 million (Q1 FY2012/13: €10.6 million loss, Q1 FY2011/12: €11.5 million loss), as anticipated in the Restructuring Plan approved by the European Commission. (See Fig 1)
These figures continue to build on the progress registered during financial year ended in March 2013. The audited financial statements will be presented at the Annual General Meeting and issued to the public in October.
These positive interim 1st quarter results were driven by constant improvements of the airline's revenue of €5.7million (Q1 FY 2013/14: €62.4 million, Q1 FY 2012/3: €56.7 million) and by the increases in passenger numbers to 498,692 passengers (+28,908 passengers (+6.2%)). The airline registered a seat load factor of 74% over this period. (See Table 1)
Performance on scheduled flights for the first quarter met expectations and was significantly better than last year. Air Malta registered its best June in terms of passenger numbers in five years (See Fig 2).
On time performance (OTP), which is being reported for the first time in the airline’s quarterly figures, has improved by 5.5% to 84.6%. This operational measure indicates the percentage of flights that have departed within 15 minutes of their scheduled time of departure. This is an industry standard measurement of on time performance of an airline and is one of the key performance indicators of the industry. Over the last few months Air Malta has launched a business process re-engineering program of projects to improve its OTP and the good news is that results are being registered (See Fig 3).
Commenting on this report, Chief Executive Peter Davies said, "These results continue to confirm that Air Malta is on its way to recovery. They could not have been achieved without the commitment and dedication of our management and staff that are together working very hard to turnaround this airline.
“In the past two years, the airline has achieved major milestones reducing its losses from a budgeted annual loss of €55million in financial year 2011/12 to a budgeted €15 million loss in financial year 2012/13. We are meeting the milestones listed in the Restructuring Plan. 75% of the 160 projects initiated by the airline have been successfully completed and we are reaping the benefits from the reduction in costs and the increases in revenue these projects are generating. We are on track with our revenue targets but much more needs to be done to reduce costs. We need and can do more,” added the CEO
Mr Davies added, “We now require to push forward our second phase of development which includes a significant overhaul of business processes in our back office, cabin and ground services divisions. This overhaul is aimed at developing a more customer-centric experience for our passengers and driving costs down. At the same time we will continue to seek to increase revenues, particularly through ancillary sales.
“Let me make myself absolutely clear. Our challenges are still significant and this year we have a tough challenge to achieve the financial break-even milestone. This requires the understanding and support of all our stakeholders including the employees, unions and suppliers amongst others”, emphasised Air Malta’s Chief Executive.
“The quick wins are now behind us and the road forward requires courage and stamina,” concluded Mr Davies.
|Operating profit/ (loss)
|Net profit / (loss)
| Passengers (Sched + Charter)
|| + 28,908
| Seat factor
| On Time Performance
Air Malta's OTP Results vs members of the Association of European Airlines