Air Malta is set to break even

Air Malta is expected to announce that it reached break even in the financial year that ended in March 2018, MaltaToday has learnt.

This will be the first time in 18 years that the national airline has registered a positive financial performance, airline sources said.

The results are expected to be announced at the annual general meeting that will be held in December. Air Malta’s fiscal year is from April to March.

The airline underwent an intensive restructuring process since being on the brink of bankruptcy in 2010 when government stepped in with State aid that had to be cleared by Brussels.

The restructuring process, which involved downsizing the airline and cutting some of its routes, was supposed to turn the airline back to black within five years. The airline failed to do so and in June last year, under the stewardship of incoming Tourism Minister Konrad Mizzi, Air Malta shifted to a growth strategy.

The airline added new routes, increased the number of aircraft in operation and negotiated collective agreements with its workers. It also cut certain costs, such as free on-board meals.

The strategy appears to have paid off with the airline managing to carry more passengers. The sources said that between January and August of this year, the airline registered a 35% increase in passenger numbers.