National Airline Maldivian Suffered A Net Loss Of MVR 99.6 Million In Q2 2021
Maldives Privatization and Corporatization Board has released the summary of the quarterly analysis of State-Owned Enterprises (SOEs) for quarter two of 2021.
National airline Maldivian has achieved a significant improvement in revenue in comparison to quarter two of 2020 however the company’s net loss has increased by double.
Maldivian generated revenue of MVR 190 million in Q2 of 2021 whereas the airline generated revenue of MVR 265 million in Q1 2021.
The company suffered a net loss of a whopping MVR 99.6 million in Q2 which is double that of Q1 this year.
The company suffered a near equal amount of loss during the same quarter in 2020 however at the time aviation came to a halt and the company was operating only a very few commercial flights.
The increase in operational expenses by 23% in Q2 with a decrease in revenue by 28% has led to the massive net loss in Q2.
Maldives Privatization and Corporatization Board recommended Maldivian to focus on improving revenue by implementing new ways to generate revenue such as expanding the seaplane operation.
The board further highlighted that Maldivian should try to achieve efficiency, economy, and effectiveness to improve business performance.
The liquidity ratios of the company also have to be further improved as current liabilities exceed the current assets.
The liquidity ratio shows that the company is not capable to meet its short-term obligations with current assets.