Despite these challenges the Indian Ocean island's carrier expected to swing to a profit this year if trading conditions hold steady, Chief Executive Officer Manoj Ujoodha said.
"If trading conditions remain as (they are) today, including price of fuel and euro-dollar exchange rate, the company will post profits at the end of the financial year," Ujoodha told Reuters after the results were released.
The global economic downturn, the fragile European economic recovery and the weak euro have hit the airline and the island's tourism sector hard.
Excluding fuel hedge costs, which amounted to 6.1 million euros for the three months to the end of June, losses came to 5.3 million euros compared with a profit of 4 million euros a year earlier.
The airline was "cautiously optimistic" the tourism sector would rebound this year, a company spokesman said, adding it saw growth in its African, Asian and Indian Ocean markets.
Air Mauritius said the number of passengers carried increased by 16.8 percent from 226,119 to 264,098 for the three months ended June 30 and cargo tonnage increased by 31.6 percent. (Reuters)
