Island Aviation Services (IAS), the state-owned operator of national airline Maldivian and several domestic airports, has reported a net loss of MVR 3 million for last year, marking its fifth consecutive year of losses.

According to the company’s audited financial statements published by the Auditor General’s Office, IAS generated MVR 2.2 billion in revenue during the year. The majority of this revenue came from domestic flight operations, followed by earnings from international routes and seaplane services.

Despite recording an operating profit of MVR 171 million, calculated after deducting operating expenses, Island Aviation ultimately ended the year in the red. The loss was largely due to MVR 171 million in financing expenses and other costs, pushing the company into negative territory.

While the latest loss represents a significant improvement compared to previous years, IAS remains in a prolonged financial slump.

Over the past 25 years, the company has accumulated MVR 1.7 billion in total losses, with 90 percent of that amount recorded between 2020 and 2022, when the Covid-19 pandemic heavily disrupted the aviation industry.

In an effort to recover and modernize operations, Island Aviation is increasing investment in its fleet and services. As part of this initiative, the company is phasing out Dash aircraft from domestic routes and replacing them with ATR planes, while also expanding its international services using larger aircraft.