Island Aviation Services Limited (IAS) has reduced its annual losses by approximately 96 per cent, reporting a loss of just MVR 2.8 million in 2024, compared to MVR 71.4 million the previous year.

According to audited financial statements released by the Auditor General’s Office, IAS recorded a total operating income of MVR 2.27 billion in 2024, a slight increase from MVR 2.2 billion in 2023. While revenue growth was modest, the notable reduction in losses is attributed to a 5.3 per cent decrease in operating costs.

This marks the fifth consecutive year the company has operated at a loss, following a profitable period from 2014 until the onset of the COVID-19 pandemic in 2020. However, the five-year trend indicates a steady recovery, with losses gradually narrowing each year. Compared to 2020, the company’s losses in 2024 have fallen by nearly 100 per cent.

In terms of revenue composition for 2024, domestic services contributed 60.6 per cent, regional services accounted for 14.5 per cent, and seaplane operations comprised 13.7 per cent of total revenue.

IAS has taken steps to diversify and strengthen its operations. Earlier this year, the company launched international flights to three Chinese cities following the arrival of its first wide-body aircraft. Plans are underway to acquire a second wide-body aircraft by October.

Domestically, the introduction of a Premium Economy class is expected to improve margins. The company is also transitioning from Dash aircraft to ATR models to reduce maintenance and overall operating costs.

These developments reflect a strategic shift aimed at restoring profitability and expanding IAS’s role in both domestic and regional aviation.