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Air Austral is again in the red in 2019
Air Austral explains the results of its fiscal year. © Air Austral

Air Austral is again in the red in 2019

After five fiscal years, Air Austral has returned below the waterline in 2019 (financial year closed on March 31), especially because of the brutal rise in oil prices in the second half of the year.

Air Austral CEO Marie Joseph Malé stated: “congruent with what was expected” while talking about the fiscal year (closed on March 31) of the airline whose results were confirmed by the General Assembly on July 11. But Air Austral’s revenues keep rising with a total of €394.4 billion, which represents a 5 percent growth in  comparison with 2018 (after a 2 percent growth the previous year). The total traffic increases from 1.8% to 1.186 million, with an average filling rate earning a point at 85% but with a decrease of  unit earnings.

However, the operation result becomes once again negative, at € -2.7 billion (in comparison with a €5.2 billion operation revenue in 2018) and the air group shows a net loss of €4.51 billion (in comparison with a €0.34 net revenue in 2018). The airline explains this reversal after five consecutive beneficiary years with “the sharp rise in the price of fuel from the second half of the year, which led to an increase in Air Austral's fuel bill of more than 14.4 million euros”, “the compulsory immobilization of two Boeing 787-8 following a directive issued by the manufacturer Rolls Royce on the world motor fleet, having forced the company to charter planes outside with negative consequences in terms of image”, and “the movement of the yellow vests in November, with the triple impact of the modification and adjustment of the program, the decline in occupancy rates of the Reunion’s company including on long-haul flights and the slowdown in bookings for flights in the following months.”

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