Financial
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)
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)
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%