Maldivian Reports MVR 46 Million Loss in Q1 2025

Island Aviation Services Limited, the state-owned operator of the national airline Maldivian, has reported a net loss of MVR 46.36 million for the first quarter of 2025, according to figures released by the Privatization and Corporatization Board (PCB).

The airline generated MVR 672.52 million in revenue during the quarter, with domestic passenger services accounting for more than half (MVR 345.26 million). Regional flights contributed MVR 110.72 million, while seaplane operations added MVR 91.44 million.

Other income streams included lounge services (MVR 17.60 million), airport management (MVR 13.54 million), jet fuel resale (MVR 35.44 million), cargo handling (MVR 13.32 million), Maldivian Holidays (MVR 3.59 million) and miscellaneous revenue (MVR 41.61 million). Despite achieving a gross profit of MVR 217.92 million, operating expenses of MVR 234.20 million outweighed earnings, leading to the quarterly deficit.

Maldivian’s financial results come at a time of significant growth and modernization for the airline. In 2025, the carrier took delivery of its first Airbus A330-200 and confirmed plans to lease a second A330. The airline is also undergoing a fleet transition, having added three ATR 42-600s and two ATR 72-600s, with more aircraft expected in 2026.

Key Developments:

• Delivery of first Airbus A330-200 in January 2025; second A330 planned by learnt 2026

• Fleet transition with 3 ATR 42-600s and 2 ATR 72-600s added; more due in 2026

• Launch of air ambulance service, completing hundreds of medical evacuation flights

• Maafaru Airport expansion with new two-storey terminal signed in 2025

• Dharavandhoo terminal development agreement signed in late 2025

• New corporate head office building signed and foundation laid in September 2025; 12-storey project scheduled for completion by end-2026

• Land acquisition worth MVR 49.4 million in Hulhumale’ for future infrastructure

Financial Position

Island Aviation’s balance sheet at the end of March showed:

• Assets: MVR 3.98 billion

• Liabilities: MVR 4.88 billion

• Equity: MVR -903.60 million (negative)

  
  

The figures underline the company’s heavy debt burden, with liabilities exceeding assets by more than MVR 900 million.

Performance Trend

The Q1 2025 loss continues a series of weak results:

• Q4 2024: Net loss of MVR 35.39 million

• Q3 2024: Net loss of MVR 83.30 million

• Q2 2024: Near break-even at MVR -1.80 million

• Q1 2024: Net profit of MVR 47.75 million

While revenue has remained relatively strong. consistently above MVR 450 million per quarter rising costs and debt obligations have eroded profitability.

Despite steady revenues and ambitious expansion plans, Maldivian’s financial results highlight the strain of balancing growth with sustainability. The airline is investing heavily in new aircraft, medical services, and infrastructure, yet profitability has not kept pace with these commitments. While the projects signal confidence in the future, the figures underline the importance of tighter cost management and disciplined execution if Maldivian is to translate expansion into lasting financial stability.