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Air Malta today reported its results for the 3rd Quarter covering the period July to September 2005. The airline carried more than 690,000 passengers on its entire network during this period, an increase of 2,644 passengers over the same period last year.
Passengers on the scheduled network to and from Malta increased by almost 8,000 (+1.62%) passengers, while charter passengers showed a decreased of 16,000. This decrease was compensated with improvements in traffic levels on the airline’s other intra-European operations.
When compared to the same period of last year flight punctuality was improved by 7% points, reaching 80%. In these three months ending September, Air Malta operated 3,050 flights which represent an increase of 47 flights. Seat Load Factor on scheduled services recorded a marginal improvement on last year reaching 74%.
The end of the 3rd Quarter for the year signifies the first six months of the financial year of Air Malta. During this period Revenues went down by Lm1.7 million while costs decreased by almost half a million Liri. This has been achieved in spite of a Lm3.0 million increase in the cost of Jet Fuel during the period. During the same period aircraft utilization reached 12.06 hours per aircraft per day representing a 10% improvement on last year.
“Air Malta is operating in difficult market conditions where fuel prices, health scares, decrease in yields and increased operator and destination competition are constantly adding pressures on the airline. We have seen very positive results from cost efficiencies which confirm the determination of Management and staff to meet the Turnaround Plan. Unfortunately the erosion in revenues resulting from cut-throat competition has affected the performance but we are determined to see improvements in this area also. What is also important is that these results continue to show that the airline’s diversification strategy is yielding positive results. We are continuing to exploit opportunities available to us in intra-European markets and we are putting in more resources and investments including I.T. Distribution tools involving a Revenue Management System, E-Ticketing and an integrated Internet Booking Engine which will improve the airlines’ productivity levels. In fact these systems should be in place by 2006”, said Ernst Funk, Chief Executive Officer of Air Malta.
“Airlines operate in a highly volatile business environment which is influenced by many factors like the cost of fuel, the strength or weakness of major currencies, the performance of the source markets and so on. In our particular case we depend heavily on the fortunes of the island’s ability to attract more tourists in order that we can fill up the empty seats that we fly at the right price. We are however determined to continue with our commitment to be the primary player of air transport to and from Malta offering a wide choice of frequencies, destinations and connectivity with value for money offers all year round”, concluded Funk.
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