Fuel costs, mother nature and increased competition put the pressure on Indian Ocean carrier Air Mauritius
 Fuel costs have been said to be the contributing factor to the 59 percent profit fall experienced by Air Mauritius in its 2005/06 financial year, with the carrier’s annual report revealing a profit fall of EUR7.3 million. The company said jet fuel costs now account for 34 percent of the airline's total operating costs, up from 26 percent in the previous year. The report also indicated that the liberalization of Mauritian air space and a mosquito-borne disease hitting tourism also presented challenges for the carrier.
Fears over chikungunya, a mosquito-borne disease, has prompted a dramatic fall of French visitors, who normally account for about one quarter of Mauritius's annual tourism numbers, which now average at about 700,000. Plans to increase tourism numbers to Mauritius has also lead to agreements on access to the country’s airspace, meaning increased competition for the airline.
"The full impact of the traffic slowdown as a result of this problem will be felt in the coming financial year," said Managing Director, Nirvan Veerasamy.
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Source = eTB (e-Travel Blackboard): C.C
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