Air Seychelles made a landmark profit of $7 million for 2023, an achievement the airline said marks not only a successful continuation of its turnaround journey initiated in 2022, but also a strong revival.

In a press statement on Tuesday, the airline said it has transformed its net asset position from negative to positive in 2022, and its 2023 earnings reflect its commitment to sustainable growth and operational excellence.

Air Seychelles said it exceeded its budget expectations by $1.6 million and surpassed five-year plan targets by an impressive $4.7 million. It also marks a second consecutive profitable year for the airline. These figures showcase the airline's dedication to outperforming set objectives and delivering exceptional results to stakeholders, it said.

Despite facing formidable challenges, such as the suspension of flights to Tel Aviv due to the conflict in Israel since October 13 last year, which resulted in a revenue loss of $2.1 million for 2023, Air Seychelles managed to increase revenues by $2.8 million, partly due to the launch of the Colombo route.

The airline has continued to lease out one A320 NEO on wet-lease Aircraft, Crew, Maintenance and Insurance (ACMI) operations during 2023, with the other A320 NEO operating the regional network. The airline said that the resilience demonstrated amid these trying circumstances highlights its strategic initiatives and adaptability within the competitive aviation market.

To manage its financial health, Air Seychelles has focused on debt reduction, successfully paying down $4.9 million of its bank loan with Nouvobanq to reduce its outstanding loan balance from an initial sum of $16.5 million to $11.6m million by August 2024.

Furthermore, the airline has completely paid off its lease deferral debt of $4.5 million, incurred during the Covid era. These efforts have led to a healthier balance sheet and a strengthened financial position.

As part of its ongoing strategy to navigate the complexities of the aviation industry, Air Seychelles has made significant strides in addressing maintenance cost escalations, particularly concerning its A320 NEO engine fleet.

In 2023, the airline took proactive measures by establishing a conservative annual accounting provision of $2.5 million dedicated to covering potential return conditions for the aircraft and its engines.

The airline considers this foresight not only as highlighting Air Seychelles' commitment to financial transparency but also stabilises future profit expectations, ensuring robust financial health for the airline.

The chief executive, Sandy Benoiton, expressed profound gratitude to all employees, acknowledging their crucial role in driving positive results.

"Your professionalism, creativity, and teamwork have driven our success and exceeded our expectations, demonstrating once again that our people are our greatest asset. As we move forward, Air Seychelles remains dedicated to excellence, growth, and resilience, securing a bright and prosperous future for our company and stakeholders," he said.