Island Aviation reports MVR159mn loss in 2021

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Island Aviation Services (IAS) reported a net annual loss of MVR159 million in 2021.

IAS, which manages the country’s national airline, Maldivian had reported the highest incurred loss during the second quarter of the previous year. In the second quarter of 2021, IAS made a loss of MVR99 million.

The state-owned enterprise reported of making a gross revenue total of MVR1.2 billion in the previous year from domestic flight movements.

IAS earned MVR326 million in the third quarter and a revenue of MVR425 million by the final quarter, with the annual 30% growth attributed to improved flight movements.

However, the gross profit margin declined during the third quarter of 2021 owing to surge in direct costs of the company.

The total overhead expenses of IAS grew by 21% and reported MVR24.7 million net loss for the final quarter in 2021, which was 158% higher than the net retained profit of Q3 2021.

Meanwhile, the increase in expenditure was attributed majorly to bumps in administrative expenses, sale and marketing expense increments.

The company’s administrative expenditure bumped by 31% in the final quarter while sales and marketing costs observed a staggering growth of 666% in the last quarter.

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