Air Mauritius: Megh Pillay Issues Caution Despite Record Profit

Despite Air Mauritius reporting profits exceeding one billion rupees, Megh Pillay has issued a warning. In a letter to the board of directors of MK, the Chief Executive Officer of Airport Holdings Ltd provides a candid analysis of the financial results for the first half of the 2025-2026 fiscal year. Behind the reported profit, he describes a structurally fragile situation and calls for deep transformation.

He considers the profit to be misleading and warns against any triumphal interpretation of the national carrier's financial results. Although the airline has reported a profit of over 22 million euros, this result should not be seen as a sign of sustainable recovery. The CEO of Airport Holdings Ltd emphasizes that this profit does not reflect a real recovery or improvement in commercial performance. It is primarily attributed to an external factor: a reduction in fuel expenses, estimated at nearly 24 million euros. In other words, without this cost relief, the financial situation would be quite different.

A detailed examination of the indicators reveals a deterioration in activity. Air Mauritius has flown fewer hours, transported fewer passengers, and recorded a lower load factor compared to the same period last year. Revenues are declining, affecting both passenger transport and cargo as well as ancillary activities. Therefore, these results cannot be presented as a turning point.

Another point raised is the risk of misinterpretation among staff. Megh Pillay warns that a simplistic reading of the profit could raise expectations for salary increases or bonuses, even while the company faces a contraction in revenues and a fragile operational reality.

In conclusion, Megh Pillay urges the MK board of directors to adopt a cautious and strategic approach. The recorded profit offers a temporary respite, but it should neither mask Air Mauritius's persistent vulnerabilities nor delay the necessary reforms for its long-term viability.