Air Tahiti Nui reports annual profit of US$3.8 million

For its financial year 2003 (January to December), Air Tahiti Nui has reported its first annual profit of US$3.8 million, versus a loss of US$0.7 million in 2002. This represented a profit margin of 2% against turnover.

Air Tahiti Nui has recorded a positive cash flow position since 2002, and no longer receives a subsidy from the Government of French Polynesia.

The airline continued its rapid growth in 2003 with the addition of two new Airbus A340-300’s, bringing the fleet total to four aircraft. An A340-200 which was leased at the company’s commencement in November,1998, was returned to the lease company in March 2003.

With the fleet expansion, Available Seat Kilometres (ASK’s) in 2003 increased by 69% over 2002. The routes that benefited from the extra capacity were:

- Papeete - Auckland: ASK’s increased 107% with an additional frequency in March and a third frequency added in October 2003.

- Papeete - Paris: ASK’s increased 147% with five weekly frequencies year round and six weekly frequencies during peak summer.

- Papeete - Los Angeles: ASK’s increased 50% with the addition of two frequencies.

The company maintained its three weekly flights to Japan but cancelled selected services during the first six months of the year, as a direct result of SARS and the Iraq War. The result was reduction in ASKs of 1%.

The number of revenue passengers carried by Air Tahiti Nui has increased in line with the fleet additions, from 113,000 in 2001 to 235,000 in 2002 and 397,000 passengers in 2003.

Passengers measured in Revenue Passengers Kilometers (RPK’s) increased by 66% from 2002 to 2003.

Total system revenue increased from US$67 million in 2001, to US$128.7 million in 2002, and to US$196 million in 2003.

The balance sheet of the company at the end of December 2003 is showing a healthy financial position with capital standing at US$44.5 million, and equity of more than US$83 million.

In order to support the growth, the number of employees increased from 212 in 2002, to 593 in 2003. The bulk of the increase covered pilots and cabin staff, which represents 60% of total employees.

2004

In the first six months of 2004, Air Tahiti Nui continued its strong growth carrying 214,000 revenue passengers. This represents a 34% increase in revenue passengers from the same period in 2003.

Capacity increased by 29% during the first six months of 2004 compared to the same period in 2003.

This represents a positive share GAP of 5 points while the system seat factor (number of passengers occupying a seat) increased by 2.2 points from 63.9% in 2003 to 66.1% in the first six months of 2004.

Air Tahiti Nui is due to commence direct online services between Sydney and Tahiti in July 2005, upon delivery of a fifth new A340-300 aircraft.