Med-view Airline Plc has reported a growth of 27 per cent in profit after tax (PAT) to N857 million for the half year ended June 30, 2017, compared with N672 million in the corresponding period of 2016.
The results of the only airline listed on the Nigerian Stock Exchange (NSE), indicated that gross revenue grew by 48 per cent from N8.7 billion to N13.007 billion in 2017.
Operating cost shot up from N7.748 billion to N9.982 billion, propelled by rise in aviation fuel cost and cost of lease of aircraft for local operations.
For instance the airline spent N1.257 billion on lease of aircraft in H1, compared with nothing in the corresponding period of 2016.
Similarly, N4.506 billion was spent on aviation fuel, showing an increase of 60.2 per cent above the N2.811 billion recorded in 2016. The amount spent on aviation alone accounted for 45 per cent of the total operating cost in 2017, compared with 37 per cent in 2016.
Administrative expenses increased marginally from N1.914 billion to N1.978 billion, while finance cost jumped to N171 million, from N55 million in 2016. The rise stemmed from a growth in interest charges on overdraft that soared from N21.3 million in 2016 to N114.636 million in 2017.
Med-view Airline therefore ended the H1 with a profit before tax (PBT) of N945 million, from N739 million and a PAT of N857 million as against N672 million.