Addu International Airport Suffered A Net Loss Of MVR 21.1 Million In Q2 2021
Maldives Privatization and Corporatization Board has released a summary of the quarterly analysis of State-Owned Enterprises (SOEs) for the second quarter of 2021.
During the second quarter of 2021, Addu International Airport’s (AIA) revenue decreased significantly.
While AIA generated revenue of MVR 26.38 million in Q1, the company received revenue of just MVR 12.25 million in Q2.
As the aviation industry is linked directly to the tourism industry; it's normal for both airline and airport operations to be low during mid-year which is the low tourist season.
AIA generates most of its revenue through sales of jet fuel which accounts for nearly 70% of total revenue.
With a lower operating revenue, AIA reported a net loss of MVR 21.1 million in Q2 which is also a higher loss compared to Q2 2020 where the airport reported a net loss of MVR 15.3 million.
the Maldives Privatization and Corporatization Board recommended AIA to focus on collecting receivables by implementing measures for credit collections and the company needs to manage and settle its payables to maintain liquidity ratios in a favorable position.
AIA's leverage ratio also shows unfavorable results as the company has more borrowings with huge accumulated losses at the end of the second-quarter of 2021.