The airline surpassed its five-year targets.
An Air Seychelles Airbus A320neo (Photo: Air Seychelles)
Air Seychelles has reported a profit of USD $7 million in 2023, highlighting a strong continuation of its recovery efforts. This achievement reflects the ongoing success of its turnaround strategy, initiated in 2022, and highlights the airline’s strong recovery.
In a press statement on October 1, 2024, the airline announced it had shifted its net asset position from negative to positive in 2022, and its 2023 earnings demonstrate its commitment to sustainable growth and operational excellence.
Air Seychelles exceeded its budget by $1.6 million and surpassed its five-year plan targets by $4.7 million. This marks the airline’s second consecutive profitable year. Despite challenges, including the suspension of its Tel Aviv flights due to the conflict in Israel, which began on October 13 last year and resulted in a $2.1 million revenue loss for 2023, Air Seychelles still managed to increase its revenues by $2.8 million, thanks in part to the launch of its Colombo route.
The airline continued its wet-lease operations in 2023, leasing one of its A320neo aircraft under Aircraft, Crew, Maintenance, and Insurance (ACMI) contracts, while the second A320neo is leased from ALC was used for its regional network. The airline in May of this year placed one of its two Airbus A320 aircraft on a wet-lease contract with Etihad Airways, its former strategic partner.
Air Seychelles has also focused on improving its financial health by reducing its debt. By August 2024, the airline had paid down $4.9 million of its loan from Nouvobanq, reducing the outstanding balance from $16.5 million to $11.6 million. Additionally, it fully repaid a $4.5 million lease deferral debt incurred during the COVID era.
In line with its strategic objectives, the airline has taken steps to manage escalating maintenance costs, particularly concerning its A320neo engines. In 2023, it established a conservative annual accounting provision of $2.5 million to cover potential return conditions for its aircraft and engines.
Chief Executive Officer Sandy Benoiton expressed his gratitude to the airline’s employees, praising their role in driving these positive results. “Your professionalism, creativity, and teamwork have driven our success and exceeded our expectations. You have once again shown that our people are our greatest asset. As we move forward, Air Seychelles remains committed to excellence, growth, and resilience, ensuring a prosperous future for our company and stakeholders,” Benoiton said.
Fully owned by the Government of Seychelles, the airline operates regionally from its home base in Mahé to Colombo, Tel Aviv, Johannesburg, Mumbai, and Mauritius. Domestically, it operates up to 30 roundtrips daily to Praslin, the second-largest island in the archipelago, and also runs charters to other islands using its fleet of Viking DHC-6 Twin Otters, which provide vital inter-island connectivity.
Founded in 1978, Air Seychelles was renationalized in April 2021 after a challenging nine-year partnership with former shareholder Etihad Airways, which held a 40% stake. Following a period of provisional administration starting in October 2021, the airline emerged from restructuring in 2022, posting a net profit of $8.4 million after five consecutive years of losses. By the end of June 2023, Air Seychelles’ value stood at $24.5 million.
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