Bloomberg News

Air Mauritius Rallies to Month-High on Second-Quarter Profit

November 09, 2012

Air Mauritius Ltd. (AML), sub-Saharan Africa’s fourth biggest airline, advanced to the highest level in more than one month, after returning to profit in the second quarter.

The stock rose 5 percent, the most since Sept. 19, to 10.50 rupees by 10:54 a.m. in Port Louis, the capital. The number of shares traded was more than six times the three-month daily average volume, according to data compiled by Bloomberg.

Net income for the three months through September was 1.27 million euros ($1.62 million), compared with a loss of 7.69 million euros a year earlier, Chief Executive Officer Andre Viljoen announced yesterday. Air Mauritius has embarked this year on a recovery plan which includes purchases of more fuel- efficient aircraft, cost management and focus on more profitable routes. It targets a return to full-year profitability by fiscal 2014.

“The airline is moving on improved financials,” said Bhavik Desai, a research analyst at the city-based Axys Stockbroking Ltd. “Their recovery plan seems to have a positive impact on the cost side.”

Revenue declined 3 percent to 112.9 million euros, Viljoen said.

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis, Mauritius, at kbhuckory@bloomberg.net

To contact the editors responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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