Precision Air Services Plc, board chairman, Michael Shirima was speaking in Dar es Salaam over the weekend at the fifth annual general meeting.
He said that the airline business in Tanzania has experienced several scenarios that have impacted market trends.
“We have seen increased competitions 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’re confident that according to the current business plan in two years to come the company will start making profit,” Shirima said.
According to him, the privately-owned airline made an operational profit of 1.4billion/- during the first quarter that ended on March 2018.
He said that the company’s total revenue has increased by 43 per cent in the year 2017/18 compared to the performance for the financial year 2016/17 which has also increased by 7 per cent, from the performance for the previous financial year.
“We managed to fly 392 million seat per kilometers compared to previous years, 375 million seats per kilometers an increase of 5 per cent,” he added.
Shirima said that the company is set to implementing a strategic plan which is expected to turn the 21billion/- loss before tax into profit during the period. He attributed the reported performance to the accrued aircraft ownership cost and depreciation of our currency versus the USD.
“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 per centcompared to the year 2016/17 and by 69 per cent compared to 2015/2016.” he explained.
Addressing the media after the meeting, Precision Air’s New Group Managing Director and CEO, Patrick Mwanri, said that Precision Air will focus on efficiency improvement projects, cost control, optimal Utilization of Aircraft, cement code share, 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’re expecting to post profit by the year 2021. We will achieve this through offering the superior services that will meet our customer expectations.”