Air Seychelles' Q3 revenue up 23% after restructuring

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Air Seychelles has posted an increase in third quarter revenue to $13.8 million, up by 23% from the second quarter, as the airline's restructuring programme took effect in its drive towards profitability for the year.

The growth in revenues was led by a 51% quarter-on-quarter increase in passengers numbers, which rose from 53,100 to 79,900.

For the quarter to 30 September 2012, traffic as measured in RPKs rose by 60% while ASKs grew by 14%. This led to a load factor of 60%, a quarter-on-quarter increase of 17 percentage points.

Air Seychelles' management team says it is "confident" that the airline will achieve its target of profitability in 2012, marking a major turnaround after several years of heavy losses.

The number of domestic passengers carried over the last three months rose by 30% to 43,900 compared with the previous quarter.

Air Seychelles chief executive Cramer Ball says: "In this quarter, we have started to see the results. We are not just attracting more passengers but we are seeing higher yields on all our routes. Our costs are falling quickly, as new efficiencies come into play, and we are now running ahead of budget in our cost-cutting programme."

Ball adds that the positive impact of cooperation with shareholders Etihad Airways and the Seychelles government is starting to be felt. In January 2012, Etihad Airways took a 40% shareholding in Air Seychelles and has a five-year management contract, the carrier says.