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Georgian Myway Airline suffers significant losses

Finance Materials 13 November 2019 18:46
Georgian Myway Airline suffers significant losses

BAKU, Azerbaijan, November 13

By Tamilla Mammadova – Trend:

Georgia's Myway Airline ended 2018 with a loss of 41 million lari ($13.8 million), Trend reports citing the financial reports of the airline.

Myway Airline is a Georgian airline established by the Hualing Group, a Chinese commercial and industrial holding company, to provide non-stopair transportation services from Tbilisi Airport to Russia, the Middle East, Europe and Asia. The airline fleet is equipped with Boeing airliners of the B737 lineup.

Last year, the company's revenue from ticket sales amounted to 14.1 million lari ($4.7 million), and the total expenses were several times higher. In addition, the company incurred a loss of 4 million lari ($1.3 million) due to depreciation of lari.

Myway's total assets were 132 million lari ($44.7 million), and total liabilities stood at 163.8 million lari ($55.4 million). Due to this difference between liabilities and assets, the independent auditor said that there is a risk that the company will not continue to operate as a functioning enterprise.

“The company's liabilities exceeded its assets by 31.7 million lari ($10.7 million) for the year ended December 31, 2018. This indicates the uncertainty of the ability of Mayway Airline to continue to function as an operating enterprise,” the auditor notes.

According to financial reports, in 2018, Myway received 8.5 million lari ($2.8 million) from scheduled flights and 5.5 million lari ($1.8 million) from charter flights. The document says that most expenditures fell on the fuel; in 2018, Myway spent 8.1 million lari ($2.7 million) on the fuel.

The 2019 financial statements will be published by the airline in 2020.

(1 USD=2.95 GEL on November 13)

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