Air Seychelles has posted its first full-year profit of $8.4 million since 2016. The airline had recorded a small $425,000 gain in 2016.
The airline settled a $28.16 million debt owed to bondholders, closing a chapter on its $71.5 million debt burden and emerging from administration successfully. Air Seychelles implemented cost-saving measures, changed its fleet, and operated charter flights to survive the pandemic, contributing to its improved financial performance in 2022.
Air Seychelles entered company reorganization with the appointment of administrators in October 2021. Its financial difficulties came from the debts incurred during the stewardship by Etihad Airways. Its restructuring began after Etihad sold its 40% stake in the carrier to the government of Seychelles. Following the sale, Air Seychelles owed over $70 million to Etihad but after receiving a 79% discount it had to pay 11.34 million.
The carrier started 2022 with a negative net asset position of $100.6 million after reporting a loss of 22.7 million in 2021.
The airline settled a $28.16 million debt owed to the Bondholders through a 16.5 million bank loan from Nouvabanq and $11.7 million from its cash reserves in May 2022. With this the airline closed $71.5 million debt burden hanging for the past eight years.
The Seychellois carrier emerged from administration and reorganization in November 2022. It managed to close the year with a positive $19 million net asset position, a $104 million increase from its negative $85 million net asset position in October 2021.
In FY2022, its overall revenue recovered 93% of 2019 and exceeded pre-pandemic figures in Q4, 2022.
By the end of the year, the company achieved an overall profit of $119.6 million. However, after excluding the debt-write-off gains from the debt discount during administration, the airline’s full-year profit stood at $8.4 million.