For the first time since 2016, Seychelles' national airline - Air Seychelles - has made a profit of $8.4 million for the year 2022, well on the path of surpassing its five-year plan.

In a press release on Tuesday, the airline outlined that following a reported loss of $22.7 million in 2021, last year was one of exceptional recovery for the company.

"Prior to the start of 2022, the airline had suffered the effects of the COVID-19 pandemic, which included the shutting down of its key routes and the shrinking of its revenue streams," said Air Seychelles.

Whilst undergoing an administration process, Air Seychelles paid the agreed settlement of $28.16 million owed to the bondholders in May 2022. The payment was made from a $16.5 million bank loan from Nouvobanq and $11.7 million of Air Seychelles' cash reserves.

Air Seychelles went into administration in October 2021 after it faced financial difficulties. This was mainly due to significant debt that was incurred during the stewardship of the airline by Etihad Airways, which was previously a 40 percent shareholder in the company. 

It was removed from administration on November 14, 2022, after a rescue plan for Air Seychelles was presented to court on November 7, 2022.

As part of the rescue plan, it was agreed that the Seychelles Civil Aviation Authority (SCAA) will create a new company that will own all the ground handling operations assets, which will see Air Seychelles given a management contract for ground handling operations.

Answering a private notice question during the Seychelles National Assembly session on Tuesday, the transport minister, Antony Derjacques, outlined that Air Seychelles is maintaining its commitment towards its debts, and they are being paid regularly.

"In June 2023, its debts have reduced to a sum of $29.3 million - $14.6 million owed to Nouvobanq and $14.7 to the Seychelles government," said Derjacques.

"At the end of June 2023, the value of the company stands at $24.5 million, a positive result that means the company is solvent as its assets are more than its liabilities as its financial status has improved by $109.5 million in the past two years. The performance of Air Seychelles is surpassing its five-year plan," he added.

Air Seychelles, the national airline of Seychelles, was established in 1978 and began long-haul service in 1983. The airline offers international and domestic flights to over 12 airlines operating at the Seychelles International Airport at Pointe Larue.