National Airline Maldivian Received A Revenue Of MVR 265 Million In Q1 Of 2021
Maldivian received a revenue of MVR 265 million in the first quarter of 2021 which is a 35% increase (MVR 68.5 million) compared to quarter four of 2020.
Comparing to the previous quarter, revenue generated from passenger income on domestic services was the highest (MVR 42 million) whereas revenue from seaplane operation achieved the highest growth of 114%.
The company made a gross profit of MVR 67 million in Q1 which is 63% higher than Q4.
The net loss of the company was reduced by 53% in Q1 2021 compared to Q4 of 2020 due to an increase in revenue and reduction of administrative expenses.
Compared to Q1 2020, net profit was decreased to a net loss.
Staff salaries and allowances continue to be the major expense of the company and it has increased by MVR 1.7 million compared to the previous quarter.
Liquidity ratios of the company are critical as current liabilities exceed their current assets however, all the liquidity ratios show improvement in Q1 2021.
Due to the result of weak liquidity position a huge amount is accumulated as payables to be received.
The privatization and corporatization board recommended the company to keep operating expenses to an optimum level through cost management and achieve efficiency and effectiveness to maximize profit.
The board further highlighted that the significant receivables of the company are a major concern for the company and a proper control mechanism should be implemented.
The aviation industry was hit with a major blow with the pandemic which resulted in a near halt in global and domestic air travel.
With the border reopening in July 2020, the tourism industry showed a significant improvement towards the end of 2020 and the start of 2021 before a reduction in arrivals in May.
The tourism industry plays a direct role in the improvement of the aviation industry as tourists account for the majority number of airline passengers.
In July 2021, another spike in tourist arrivals resulted in a major increase in air travel. If tourist arrivals are to remain as estimated by the Tourism Ministry, the local airlines are expected to remain busy throughout the year.