Air Mauritius posts profits for the quarter ended 30-Sep-2010

The world economic crisis which severely hit the aviation and tourism sectors impacted negatively the results of the Company for the first quarter (April-June 2010) of the financial year. During the course of the second quarter (July-September 2010) the global economy started showing signs of recovery and the international passenger demand returned to its upward trend. The International Air Transport Association (IATA) is now forecasting a much improved picture for the global aviation industry.

Air Mauritius Posts Profits for the Quarter ended 30 September 2010

For the quarter ended 30 September 2010, the Group and the Company recorded a profit of Eur 5.0 million and Eur 4.8 million respectively compared to a profit of Eur 2.9 million and Eur 2.7 million for the comparative period of last year.

The above results are after taking into account total losses of Eur 2.3 million on fuel hedge payouts during the quarter.

Before taking into account the total losses of Eur 2.3 million on fuel hedge payouts, the profit earned by the Group and the Company for the quarter ended 30 September 2010 amounted to Eur 7.3 million and Eur 7.1 million respectively compared to profit of Eur 11.3 million and Eur 11.2 million for the same period of last year.

Total passengers carried increased during the quarter by 17.8% and cargo tonnage uplifted also went up by 20.3% when compared with the same period of last year. Both passenger and cargo yields increased by 3% and 3.9% respectively. Accordingly, the operating revenue of the Company increased by Eur 16.1 million (17.9%) when compared to the quarter ending 30 September 2009.

The average fuel price for the quarter increased by 9.5 % when compared to the corresponding quarter of last year. Moreover, on average, EURO depreciated by nearly 10% against the USD when compared to quarter ending September 2009. As a result of the increase in price of fuel and depreciation of EURO, the Company's fuel costs for the quarter increased by Eur 6.5 million.

Half Year Results -April 2010 to September 2010

The Group and the Company recorded losses for the half year ended 30 September 2010 of Eur 6.4 million and Eur 6.8 million respectively after accounting for total payouts from fuel hedges amounting to Eur 8.4 million.

For the corresponding period last year, the Group and the Company had recorded losses of Eur 10.1 million and Eur 10.5 million respectively after accounting for total payouts of Eur 25.5 million on fuel hedges.

Shareholders' Funds

Total Shareholders' Funds for the Company slightly reduced from Eur 105.2 million as at 31 March 2010 to Eur 104.0 million as at 30 September 2010. The resulting net asset per share as at 30 September 2010 is Eur 1.02 (Rs 41.91) as compared to Eur 1.03 (Rs 42.56) as at 31 March 2010.

Outlook

Continued uncertainty in Europe, the main market of Air Mauritius, compels the Company to remain cautious. Nonetheless, the market outlook in the third and fourth quarters is encouraging and the upward trend is expected to be sustained. The Company remains on course to attain its targets for the financial year.