Aviation and Airlines (Commonwealth Union) _ Air Seychelles, the flag carrier of the Republic of Seychelles, has achieved a remarkable turnaround in its financial performance since emerging from administration. The airline recently announced its 2022 financial results, reporting a profit of $8.4 million. This marks its first full-year profit since 2016 when it made a small gain of $425,000. Air Seychelles had faced significant financial and operational challenges, exacerbated by the pandemic outbreak, leading to a negative net asset position of $100.6 million at the start of 2022. However, after going through company reorganization and settling its debts, the carrier managed to close the year with a positive net asset position of $19 million.
During its reorganization, Air Seychelles settled a debt of $28.16 million owed to bondholders through a bank loan and cash reserves. The restructuring process proved successful, resulting in improved operational and financial performance. In FY2022, the airline’s overall revenue recovered to 93% of 2019 levels and surpassed pre-pandemic figures in the fourth quarter. Despite achieving an overall profit of $119.6 million, the airline’s net profit for the year stood at $8.4 million after excluding debt-write-off gains.
The carrier’s success was attributed to the efforts of its employees, the Seychellois government, the public, legal teams, creditors, and administrators involved in the process. Additionally, Air Seychelles implemented various cost-saving measures and fleet transformations to survive the period of reduced air travel during the pandemic. It changed its fleet from Airbus A320ceo to A320neo and expanded its services with charter flights to several destinations around the world.
In 2023, Air Seychelles has seen a significant increase in passenger traffic, surpassing 2019 levels. However, to meet the growing demand, the carrier is in need of more capacity. It plans to add additional destinations and codeshares to finish the year on a strong note. The airline’s remarkable turnaround and financial recovery reflect its resilience and determination to thrive in the post-pandemic aviation landscape.
