PN doesn’t compare like with like in latest Air Malta tirade

The Nationalist Party’s latest tirade over Air Malta’s financial performance in 2014 has bungled up the figures somewhat.

The national airline, which presented its annual figures for the year ending March 2014, posted pre-tax losses of €16.2 million.

In 2013 (year ending March 2013) those losses were at €31 million, and €40 million in 2012 and €78 million in 2011, so the airline actually halved its losses – after restructuring and finance costs – by €16.2 million, despite not reaching its target.

But it is here that the PN’s latest statement is mixing up the numbers.

On Wednesday evening the Opposition said Air Malta’s losses under Labour had increased to €16.2 million from €13.7 million for year-end March 2013, and €29.8 million for year-end March 2012.

But the PN is not quoting these pre-tax losses, but operating losses before restructuring costs.

The blame partly lies in the way Air Malta has fashioned its previous years' income statements, and the different way it presented its figures in the March-2014 statement.

Here’s the math: the purported €13.7 million loss of March 2013 is actually the result of €26.1 million in operating losses, less a €12.3 million restructuring cost; the €29.8 million figure they cite for March 2012 is the result of operating losses of €34 million less €4.2 million in restructuring costs.

But these operating loss figures, drawn from the Air Malta statements, have already had their restructuring cost factored in.

In reality, Air Malta’s loss before tax at year-end March 2013 was €30.9 million, €40.1 million in year-end March 2012, and the year before was €78.3 million.

Ever since Air Malta embarked on a restructuring process mandated by the European Commission, its operating losses have been going down: €34.1 million (2011), €29.8 million (2012), €13.8 million (2013) and €9.9 million (2014).

Graph shows operating losses as presented in Air Malta statement, deducted by restructuring costs: what the PN is quoting as losses; but actual pre-tax losses quoted by Air Malta are made up operating losses and restructuring and finance costs. It seems that previous Air Malta statements split up costs differently.