National carrier, Maldivian operated by Island Aviation Services has reported a loss of MVR 110 million.
Statistics of Privatization and Corporatization Board (PCB) reveal that IAS income fell by 76 percent in the second quarter of 2020 when compared with the same period in 2019.
IAS earned a revenue of MVR 457 million in the second quarter of 2019 while the company earned just MVR 109 million in 2020. IAS is currently facing a loss of MVR 110 million (780 percent).
The PCB report for IAS states that IAS faced challenges due to COVID-19 and its impact on businesses and the economy which led to a halt in the airline’s operations. Due to shortages of passenger income of the interrupted seaplane operations, IAS income fell by MVER 257 million.
IAS earnings for the year 2019 and 2020:
Seaplane Operations:
- Second quarter of 2019: MVR 54.2 million
- First quarter of 2020: MVR 47 million
- Second quarter of 2020: MVR 26 million
Passenger Income (Regional):
- Second quarter of 2019: MVR 138 million
- First quarter of 2020: MVR 89 million
- Second quarter of 2020: MVR 42 million
Passenger Income (Domestic):
- Second quarter of 2019: MVR 233 million
- First quarter of 2020: MVR 247 million
- Second quarter of 2020: MVR 37 million
Commercially Important Passenger Revenue
- Second quarter of 2019: MVR 11 million
- First quarter of 2020: MVR 57,841
- Second quarter of 2020: MVR 9 million
Cargo Handling Income:
- Second quarter of 2019: MVR 3.1 million
- First quarter of 2020: MVR 2.5 million
- Second quarter of 2020: MVR 1.4 million
Ground Handling Revenue
- Second quarter of 2019: MVR 16 million
- First quarter of 2020: MVR 18 million
- Second quarter of 2020: MVR 1.6 million
According to PCB, IAS don’t have a cash flow to repay the short-term debts of the company. Moreover, the hard assets of IAS value lower than its short-term debt.
As part of the measures to overcome the challenges, the PCB advised IAS to increase its earning and income and to cut down costs after reviewing the overdrafts of the company from banks to cover the losses.
