Air Seychelles Celebrates Landmark Profit in 2023

2023 has proven to be a remarkable year for Air Seychelles, with the national airline proudly announcing a profit of USD 7 million. This achievement marks not only a successful
continuation of its turnaround journey initiated in 2022 but also signals a strong revival. Air Seychelles transformed its net asset position from negative to positive in 2022, and its 2023 earnings reflect its commitment to sustainable growth and operational excellence.

Air Seychelles exceeded its budget expectations by USD 1.6 million and surpassed five-year plan targets by an impressive USD 4.7 million. It also marks a second consecutive profitable year for the airline. These figures showcase the airline's dedication to outperforming set objectives and delivering exceptional results to stakeholders.
Despite facing formidable challenges, such as the suspension of flights to Tel Aviv due to the conflict in Israel since 13 October 2023, which resulted in a revenue loss of USD 2.1 million for 2023, Air Seychelles managed to increase revenues by USD 2.8 million, partly due to the launch of the Colombo route. The airline has continued to lease out one A320 NEO on wet-lease (ACMI) operations during 2023, with the other A320 NEO operating the regional network. The resilience demonstrated by the airline amid these trying circumstances highlights its strategic initiatives and adaptability within the competitive aviation market.

To manage its financial health, Air Seychelles has diligently focused on debt reduction, successfully paying down USD 4.9 million of its bank loan with Nouvobanq to reduce its
outstanding loan balance from an initial sum of USD 16.5 million to USD 11.6 million by August 2024. Furthermore, Air Seychelles has completely paid off its lease deferral debt of USD 4.5 million, incurred during the Covid era. These efforts have led to a healthier balance sheet and a strengthened financial position.

As part of its ongoing strategy to navigate the complexities of the aviation industry, Air Seychelles has made significant strides in addressing maintenance cost escalations, particularly concerning its A320 NEO engine fleet. In 2023, the airline took proactive measures by establishing a conservative annual accounting provision of USD 2.5 million dedicated specifically to cover potential return conditions for the aircraft and its engines.

This foresight not only highlights Air Seychelles' commitment to financial transparency but also stabilises future profit expectations, ensuring robust financial health for the airline.

The remarkable achievements of Air Seychelles would not have been possible without the unwavering dedication and talent of its staff. The Board of Directors and CEO Sandy Benoiton expressed profound gratitude to all employees, acknowledging their crucial role in driving positive results.

"Your professionalism, creativity, and teamwork have driven our success and exceeded our expectations, demonstrating once again that our people are our greatest asset.
As we move forward, Air Seychelles remains dedicated to excellence, growth, and resilience, securing a bright and prosperous future for our company and stakeholders." expressed Sandy Benoiton, CEO of Air Seychelles.

As the airline looks forward to the future, it remains dedicated to delivering exemplary service, fostering innovation and achieving sustainable growth.