Island Aviation reduces losses from MVR 1.79bn to MVR 1.61bn

Island Aviation Services, the company that operates the national airline Maldivian, has reduced its accumulated losses from MVR 1.79 billion to MVR 1.61 billion.

The 2025 financial statement audit report on Island Aviation, publicized by the Auditor General’s Office on Tuesday, shows the state-owned enterprise began the year on an accumulated loss of MVR 1.79 billion.

The company generated a profit of MVR 181.86 million in 2025. This offset part the loss, helping the company end the year with a reduced accumulated loss of MVR 1.61 billion.

Island Aviation generated a revenue of MVR 3.02 billion in 2025 – marking a 33.04 percent increase from the MVR 2.27 billion in revenue the company generated the previous year.

While the revenue was higher than 2024, total expenses, such as the cost of jet fuel, employee salaries, lease payments of planes, and aircraft maintenance and repair costs increased in 2025.

Island Aviation spent MVR 521.91 million on fuel in 2025, compared to the MVR 478.55 million in 2024. It also spent MVR 603.57 on the payroll and another MVR 92.6 million in aircraft lease payments, compared to MVR 556.91 million and MVR 22.48 million, respectively, in 2024.

The company ended 2025 with MVR 4.37 billion in capital assets.

The report shows Island Aviation received MVR 399.75 million in government subsidies in 2025.

Island Aviation has struggled with major financial troubles in recent years. The company suffered a loss of MVR 2.82 million in 2024, marking its fifth consecutive annual loss.