National airline, Maldivian faces a MVR10.8 million loss!

Photo: Corporate Maldives

Second quarter of this year proves to be a loss for national airline, Maldivian, says Privatization and Corporization Board (PCB).

According to the report published by PCB, Maldivian has incurred a loss of MVR10.8 million. The report also suggests that this is a 116% loss compared to that of the second quarter of last year, which sums up to a loss of MVR78.79 million. Last year the airline bagged a total profit of MVR68.05 million in the second quarter.

The main explanation for this huge loss is presumed to be the increasing expenses of the airline despite the decrease in income. This is backed up by the figures which show that although the income of the airline has decreased by MVR83.58 million, expenses have soared up to MVR142.03 million. The report also highlights the main increase of expenses to be with regards to the salaries and allowances of employees, which has gone up by MVR8.69 million, adding up to a total of MVR100.29 million.

With this the company’s debt has also increased by MVR73 million which now as high as MVR647.75 million. The company’s receivables have also increased to MVR17 million as of now.

Overall, despite the company having have spent MVR300.62 million and earned an income of MVR541.52 million in the first quarter, during the second quarter, the company spent MVR319.98 million and received MVR457.94 million as revenue. This is a decreased of MVR83.58 million between the two quarters of this year, which resulted in a loss of MVR10.75 million for the company.