Addu International Airport Company, the operator of Gan International Airport, incurred multi-million rufiyaa losses last year, pushing the company’s total accumulated losses past the MVR 800 million mark, according to auditors.
The latest audit report for Addu Airport Company reveals that while the company held a net worth of over MVR 10 million in 2024, its equity position plummeted by year-end, resulting in a negative net worth exceeding MVR 58 million.
This negative equity indicates that the company’s total liabilities now outweigh its assets. The company recorded a loss of MVR 68 million in the past year alone, bringing its total cumulative losses since inception to MVR 817 million.
These losses come despite a surge in the company’s revenue. Income grew from MVR 38 million in 2024 to MVR 94 million last year—a nearly threefold increase.
The reason for this revenue growth was a sharp rise in aviation fuel sales. Additionally, the company generated millions in revenue from ground handling services, landing fees, and rent from its airport café.
However, the increase in revenue was offset by operating expenses, which more than doubled. Operating costs climbed from MVR 54 million to MVR 112 million over the past year. This spike includes the cost of fuel procurement, staff salaries and benefits, and over MVR 4 million in regulatory fines. The audit report did not specify the nature of the violations that led to these penalties.
Despite its financial state, Addu Airport Company continues to operate through the ongoing support of its shareholders. The company is a joint venture, with the Maldivian government holding a 70% stake and Kasa Holdings (Champa) holding the remaining 30%.
To cover its expenses, the company has secured interest-free loans amounting to MVR 55.7 million from Kasa Holdings and MVR 97.2 million from the Maldivian government. Furthermore, the company owes an additional MVR 195.3 million to the Finance Ministry for various obligations.
The company’s debt burden also includes MVR 99.3 million in outstanding payments for a loan taken out during former President Abdulla Yameen’s administration to develop the Gan International Airport runway. Additionally, it owes MVR 41.5 million to various government agencies and state-owned enterprises, including over MVR 18 million due to the State Trading Organisation (STO).
