Air Seychelles Reports $7M Profit for 2023
HM achieves second consecutive profitable year.
Air Seychelles has reported a profit of USD 7 million for the year 2023.
The airline noted that this achievement marks a successful continuation of its turnaround journey initiated in 2022 and signals a strong revival.
Key Highlights
- Exceeded budget expectations by USD 1.6 million
- Surpassed five-year plan targets by USD 4.7 million
- Second consecutive profitable year
Operational Highlights
Despite challenges such as the suspension of flights to Tel Aviv due to the conflict in Israel, which resulted in a revenue loss of USD 2.1 million, Air Seychelles managed to increase revenues by USD 2.8 million, partly due to the launch of the Colombo route.
The airline continued to lease out one A320 NEO on wet-lease (ACMI) operations during 2023, with the other A320 NEO operating the regional network, according to the airline.
Debt Reduction and Financial Health
Air Seychelles focused on improving its financial health by paying down USD 4.9 million of its bank loan with Nouvobanq, reducing the outstanding loan balance to USD 11.6 million by August 2024.
Additionally, the airline completely paid off its lease deferral debt of USD 4.5 million incurred during the Covid era, leading to a healthier balance sheet and a strengthened financial position.
Maintenance and Future Strategy
To address maintenance cost escalations, particularly concerning its A320 NEO engine fleet, Air Seychelles established a conservative annual accounting provision of USD 2.5 million to cover potential return conditions for the aircraft and its engines, according to the airline.
