Financial
review
review
In 2018 the Company continued to build on and benefit from its competitive strengths despite a very challenging year for the entire industry due to high fuel prices.
Financial performance summary
(USD thousands) |
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| 2018 | 2017 | Change | |
| Total revenue | 840,861 | 767,537 | 9.6% |
| Total operating expenses | (804,355) | (704,282) | (14.2%) |
| Operating profit | 36,506 | 63,255 | (42.3%) |
| Operating profit margin | 4.3% | 8.2% | (3.9 pp) |
| Net financing expense | (7,613) | (3,825) | (99.0%) |
| Foreign exchange loss, net | (16,885) | (10,370) | (62.8%) |
| Profit before tax | 12,008 | 49,060 | (75.5%) |
| Income tax expense | (6,656) | (9,742) | 31.7% |
| Profit for the year | 5,352 | 39,318 | (86.4%) |
Revenue
(USD thousands) |
|||||
| 2018 | 2017 | Change | |||
| Total | % of total revenue | Total | % of total revenue | ||
| Passenger revenue | 810,353 | 96.4% | 718,178 | 93.6% | 12.8% |
| Cargo and mail revenue | 20,703 | 2.5% | 19,666 | 2.6% | 5.3% |
| Other revenue | 9,805 | 1.1% | 21,215 | 2.7% | (53.8%) |
| Gain from sale and leaseback transaction | – | – | 8,478 | 1.1% | (100%) |
| Total revenue and other income | 840,861 | 100% | 767,537 | 100% | 9.6% |
In 2018, passenger services accounted for 96.4% of total revenue and remained the Company’s core activity. The remaining 3.6% consisted of revenue generated by cargo and mail services (2.5%) and other revenue (1.1%).
Growth in ASK year-on-year
+5%
Total revenue in 2018 (USD million)
840.9
Revenue and operating expenses
Revenue, USD million
Operating expenses, USD million
Operating margin (%)
Breakdown of operating expenses
(USD thousands) |
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| 2018 | 2017 | Change | |||
| Total | % of total revenue | Total | % of total revenue | ||
| Fuel | 231,316 | 28.8% | 183,518 | 26.1% | 26.0% |
| Handling, landing fees and route charges | 112,251 | 14.0% | 103,164 | 14.6% | 8.8% |
| Passenger service | 91,016 | 11.3% | 86,635 | 12.3% | 5.1% |
| Engineering and maintenance | 86,278 | 10.7% | 69,173 | 9.8% | 24.7% |
| Employee costs | 80,014 | 9.9% | 71,103 | 10.1% | 12.5% |
| Aircraft operating lease costs | 71,413 | 8.9% | 61,413 | 8.7% | 16.3% |
| Other | 132,067 | 16.4% | 129,276 | 18,4% | 2.2% |
| Total operating expenses | 804,355 | 100% | 704,282 | 100% | 14.2% |
Breakdown of operating expenses, 2018 (%)
29%
Fuel
14%
Handling, landing fees and route charges
11%
Passenger service
10%
Employee costs
11%
Engineering and maintenance
9%
Aircraft operating lease costs
16%
Other
Operating profit
(USD thousands) |
|||
| 2018 | 2017 | Change | |
| Operating profit | 36,506 | 63,255 | (42.29%) |
| Net financing expense | (7,613) | (3,825) | (99.03%) |
| Foreign exchange loss, net | (16,885) | (10,370) | (62.83%) |
| Profit before tax | 5,352 | 39,318 | (86.39%) |
Equity
(USD thousands) |
|||
| 2018 | 2017 | Change | |
| Share capital | 17,000 | 17,000 | – |
| Functional currency transition reserve | (9,324) | (9,324) | – |
| Reserve on hedging instruments, net of tax | (62,770) | (71,465) | 12.17% |
| Retained earnings | 143,746 | 150,552 | (4.52%) |
| Total equity | 88,652 | 86,763 | 2.18% |