Thursday, September 5, 2013

■ SEYCHELLES: Air Seychelles posts very strong 2Q & 1H2013 Financial results.

Air SeychellesAir Seychelles (HM) has announced a strong second quarter (Q2) and half-year financial performance, reflecting continued solid growth and success in its turnaround strategy. Overall, during the quarter, the Seychellois national carrier posted total revenues of USD26.03 million (up from USD10.87million in 2012), a significant increase of 139%. Total revenues for the first half of 2013 reached USD42.05million (2012: USD18.76million), up by 124%.

Air Seychelles Financial Results 2Q2013 & 1H2013
Value (% change on 2012)
  • Total Revenue 2Q2013 - USD26.03million (+139%)
  • Total Revenue 2H2013 - USD42.05million (+124%)
  • Pax (Dom & Int) Revenue 2Q2013 - USD17.5million (+146%)
  • Pax (Dom & Int) Revenue 2H2013 - USD27.97million (+99%)
  • Total Pax Carried 2Q2013 - 82'893 (+56%)
  • Total Pax Carried 2H2013 - 146'980 (+44%)
  • Available Seat Kilometers (ASK) - 335.7million (+140%)
  • Revenue Passenger Kilometers (RPK)  - 187.1million (+207%)
  • Cargo Revenue 2Q2013 - USD3.68million (+279%)
  • Cargo Revenue 2H2013 - USD5.32million (+204%)
  • Total Cargo Carried 2Q2013 - 1.6million tonnes (+283%)
  • Total Pax Carried 2H2013 - 2.37million tonnes (+217%)
Source [Air Seychelles]

Air Seychelles’ Chief Executive Officer, Cramer Ball, attributed the Q2 and half-year results to the airline’s ongoing turnaround strategy, which included significant expansion of international services following the addition of a second Airbus A330-200, and greater revenue contributions from its equity partner Etihad Airways and codeshare partners.
We achieved triple digit growth in the second quarter of 2013 — a tremendous result and further evidence of the success of our strategy,” said Mr Ball. “At the beginning of the year, we committed to the further development of our network through organic growth and partnerships and we have delivered on that promise. Today, thanks to our new codeshare partnerships and the expansion of our codeshare agreement with Etihad Airways, Air Seychelles now proudly flies to four continents. We are realising significant returns on these relationships, with a 34 per cent contribution to our total revenue in the second quarter. We are creating a solid foundation for the future of our airline, Seychelles tourism and our home economy, and we are on track for a second year of profitability.
The airline expanded its codeshare agreement with Etihad Airways to include Dublin, Melbourne and Sydney, bringing to 23 the number of codeshare destinations served by the airlines. Air Seychelles also signed codeshare agreements with airberlin, South African Airways and Czech Airlines, adding Berlin, Düsseldorf, Johannesburg and Prague to its codeshare network.

Increased services to Johannesburg, Mauritius and Abu Dhabi, and the launch of services to Hong Kong further reflect the airline’s growth, effectively doubling weekly international services from eight in 2012 to the current 16. The new international schedule was made possible by the entry into service of the airline’s second Airbus A330-200 passenger aircraft.

Joël Morgan, Seychelles’ Minister for Home Affairs and Transport, and Chairman of Air Seychelles, said: 
Since December last year, we have modernised and signed 15 Air Service Agreements, including Hong Kong, Australia, the Czech Republic, Kuwait, South Africa, and just last week, Vietnam. Dozens more agreements are in the pipeline and these will provide greater air access and codeshare opportunities for Air Seychelles going forward, fulfilling our Ministry’s mission to continually improve air access to Seychelles.
The increase in cargo volume was attributable to the boost in under-floor freight capacity provided by the second Airbus A330, the airline’s new through-service that connects Hong Kong to Johannesburg via Abu Dhabi, and developing markets in Paris and Milan. The airline also introduced a domestic cargo product in May, providing a convenient new option for sending packages within the archipelago.

Air Seychelles has also seen active growth in the domestic market. Passenger numbers rose 20 per cent to 38,397 (2012: 31,998) in Q2. The airline carried 16,891 Seychellois residents on its domestic services in Q2, up 22.1 per cent from a year ago (2012: 13,832). Residents comprised 40.7 per cent of the passengers carried, a reflection of the carrier’s enduring popularity with the local population.

In Q2 2013, ASKs on the domestic service grew by 16.2 per cent to 3.04 million (2012: 2.62 million) and RPKs increased by 20.1 per cent to 1.97 million (2012: 1.64 million).

Mr. Ball said:
I’m encouraged by the improved performance of our domestic operations. Our enhanced domestic schedule, with its increased capacity at peak travel times, has successfully catered to the increasing demand for inter-island travel, as reflected by the 18 per cent growth in visitor traffic in the second quarter. We provide a reliable and efficient service for our residents, who have likewise rewarded us with an increase in traffic. We see opportunities for additional revenue and growth in our domestic operations, and we have an exciting investment plan to ensure we continue to provide the best possible experience for our guests on the domestic routes.
He added that the airline is now aiming for a four-star Skytrax rating – which will put Air Seychelles on the same level as some of the world’s most renowned airlines.