As the 2023-2024 financial year approaches,, March 31, the management of Air Austral was forced to recognize a particularly difficult financial situation.
The company's cash flow is once again dry and requires an urgent injection of new money from shareholders. The management board of Air Austral cites an accumulation of unfavorable factors which impact the financial results, while the commercial results for the year are described as satisfactory. The return of the two Boeing 737s required much higher repair costs than expected, Madagascar Airlines is struggling to pay several million euros owed under the sublease contract for two ATRs, as revealed by Joseph Bréma, chairman of the board, interviewed by Imaz Press Réunion on February 15. The Reunion company pays a high price in particular for the aircraft choices of its previous president, Marie-Joseph Male. The two Boeing 787s purchased in 2016 have problems, one of them is currently immobilized awaiting a replacement engine, requiring expensive aircraft charters to other companies. Likewise, the three Airbus A220-300s are experiencing engine problems which considerably complicate the successful execution of Air Austral's regional flight program. The management board must present a crisis exit plan to the company's shareholders at the beginning of March.
