Air Malta's revenues

Vicky Karantzavelou writes in Travel Daily News about Air Malta's revenues:

Air Malta annual report and consolidated financial statements for the year ended 31 March 2006 showed that the year under review has been a very difficult one for the airline with rising fuel costs which soared to unprecedented levels while revenue figures registered a decrease. The airline recorded a decrease in non fuel costs items resulting in key cost savings in various areas.

In the financial year 2005/06 Air Malta carried 1.86 million passengers throughout its network; representing a 2.4% (46,000) decrease in passengers over the same period last year. The decrease was mainly registered in the 1st quarter 2006, in which, as reported in a recent media statement, Air Malta has seen a decrease of 30,000 passengers in this quarter. This decrease is mainly attributed in the shift in incidence of the Easter period.

During this financial year the airline faced fierce competition on the Malta route with an oversupply of seats at very aggressive pricing. Air Malta floated 2.1million seats of the Malta route; 43,000 more seats over the financial year 2004/5. At the same time Air Malta faced increasing fuel prices that reached record levels. The increased in fuel costs were partially offset by Air Malta’s beneficial fuel hedging contracts and if it was not for them fuel costs would have been significantly higher. The efficiencies and improvements in the airline’s cost base as identified in the Rescue Plan Agreement signed with the four Unions were largely achieved, and in some cases bettered, with the exception of fuel. Air Malta has seen a decrease of 9% in non-fuel cost items then expected two years ago...

Air Malta website