SHAREHOLDERS DISCUSS FINANCIAL RESULTS AS OVERALL LOSSES SHARPLY REDUCED
(Posted 10th November 2019)
Tanzania’s only public listed Airline Precision Air Services Plc, held its 5th Annual General Meeting earlier in the week at the Golden Jubilee Towers,Dar es Salaam. Chaired by the Board Chairman, Mr. Michael Shirima the meeting received and discussed the financial statements for the year 2017-2018.
During the shareholders meeting it was revealed that Precision Air made an operating profit of Tshs 1.4 billion for the year which ended on March 31st 2018. Addressing shareholders during the meeting Mr. Michael Shirima said, the airline business in Tanzania has experienced scenarios that have impacted market trends.
“We have seen increased competition in the market during the reporting period. Nevertheless, we continue to do well in our performance as we have witnessed our losses decreasing year by year. We are confident that according to the current business plan in two years to come the company will start making profit.” he said.
On the other hand, Mr. Shirima also reported that the total revenue has increased by 43% in the year 2017-18 compared to the performance for the financial year 2016-17 which has also increased by 7%, from the performance for the financial year 2015-16.
“We managed to fly 392 million seat kilometers compared to the previous year’s 375 million seats kilometers, an increase of 5%” he added.
Mr. Shirima, said that the company will implement a strategic plan which is expected to turn the Tsh. 21 billion loss before tax into profit. He attributed the reported performance to the accrued aircraft ownership cost and depreciation of the local currency versus the US Dollar.
“ We are happy with our performance as we have continued to witness a reduction of our losses and this is a good indicator that soon we will start realizing profits in our business. For the year 2017-18 our losses have dropped by 28% compared to the year 2016-17 and by 69% compared to 2015-2016.” Mr. Shirima explained.
The improved financial results are attributed to the former CEO Sauda Rajab, who left the airline after serving during the critical six years after a failed expansion strategy, using jet aircraft, had been ditched to begin the road to recovery.
Addressing the media after the meeting, Precision Air’s New Group Managing Director and CEO, Mr. Patrick Mwanri, said that Precision Air will focus on efficiency improvement projects, cost control, optimal Utilization of Aircraft, cement codeshares and increasing ancillary revenues as the strategies to turn around the business in the next five years.
“With the successful implementation of our five year strategic plan, we are expecting to post profit by the year 2021. We will achieve this through offering the superior services that will meet our customer expectations.”
Patrick Mwanri is expected to continue on the path of his predecessor in reducing cost and increasing revenues, seeing the airline return to full profitability in two years time.
Established in 1993, Precision Air has been in operation for 25 years, providing key connections for tourist and economic travel within and beyond the country. Currently Precision Air provides scheduled flights to 13 destinations within and outside Tanzania from its main hub in Dar es Salaam, including Arusha, Kilimanjaro, Serengeti, Mtwara, Kahama, Bukoba, Mwanza, Zanzibar, Tabora, Seronera, Nairobi, Entebbe and most recently the new route to Tanzania’s political capital of Dodoma. Other services provided by Precision Air include chartered, courier and cargo air services. The airline is also a recipient of multiple awards from Tanzania Society of Travel Agents, Africa Aviation News Port, Tanzania Leadership Awards, TASOTA, among others and a listed company at the Dar es Salaam Stock Exchange.