Island Aviation Services (IAS), the state-owned enterprise which manages the national airline, Maldivian incurred a net loss of MVR24.7 million in the last quarter of 2021.
The state-owned enterprise reported a total revenue of MVR425 million for the review quarter indicating a growth of 30 percent and 116 percent compared to Q3 2021 and Q4 2020 respectively.
IAS reported a growth of revenue from domestic flight operations by 17 percent in Q4 2021 compared to the preceding quarter last year while sea plane performance improved by 129 percent against Q3 2021.
Though revenue recorded a growth of 30 percent for the review quarter, the gross profit growth margin slipped and was observed for only 6 percent owing to higher direct costs.
IAS reported a gross profit of MVR113 million for Q4 2021 compared to MVR107 million earned in Q3 2021 and MVR41.2 million earned in Q4 2020.
The company reported a major surge in the direct cost for fuel which increased by over MVR44.8 million compared to the preceding quarter due to increased flight movements.
Additionally, the cost related to hiring and chartering of aircraft increased by 100 percent compared to the previous quarter.
The company reflected an increased net loss for the final quarter in 2021 owing to the significant bump in administrative and selling and marketing expenses which were reported at MVR138 million and MVR1.5 million respectively for the review quarter.
Company's administrative expenses increased by 31 percent compared to Q3 2021 while selling and marketing costs increased by a staggering 666 percent compared to the preceding quarter.
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