Air Macau reports RMB464 mln in net losses in H1

Local carrier Air Macau has reported some RMB464 million (MOP540.9 million/US$67.7 million) in net losses during the first half of this year, according to Air China’s latest financial report, newspaper Tribuna de Macau reported.

In the same period of last year, the local carrier had reported RMB71 million in profits, with the Covid-19 pandemic having greatly disrupted air travel businesses worldwide, and reducing Air Macau’s revenues by 75.3 per cent year-on-year to RMB457 million.

In the period under review, Air Macau transported 372,800 passengers, an annual drop of 79.3 per cent, and saw the average flight occupancy rate drop 21.17 percentage points to 60.2 per cent.

According to the report, only 0.5 per cent of the total passengers reported in the first half of this year were carried during the second quarter of this year.

Meanwhile, Air Macau’s parent company, Air China, ended the first six months of this year with RMB9.4 billion in losses.

Despite reporting MOP1.66 billion in accumulated profits of between 2010 and 2019, this year Air Macau implemented a strong expenses containment plan, which, among other measures, included a 90 per cent reduction in the base salary of pilots and flight attendants stranded outside the SAR.

Air Macau also deducted seven days of unpaid leave from the wages of workers who remained in Macau but was prevented from exercising functions due to the cancellation of flights and opened internal, investigations to at least 40 pilots suspected of disregarding service standards, namely for counting more hours of flight than those actually fulfilled, a practice that will have led to the removal of four Brazilian professionals in June.

At the end of June, the company’s fleet included 22 aircraft and in early March, Air Macau exercised the option to purchase an Airbus A320neo, with the company having already received three A320neos in April, May and June 2019, and an A321neo, delivered in December of last year as part of its fleet renovation plans.