Audit report shows Kadhdhoo Airport operating at a cumulative loss of MVR 325.1 million

Kadhdhoo Airports Company posted a net loss of MVR 29.5 million at the end of last year, bringing the total loss incurred by the company to MVR 325.1 million in recent years, according to an audit report on financial statements released by the Audit Office.

According to the audit report, Kadhdhoo Airport Company earned MVR 11 million in revenue last year, while expenditure stood at MVR 38.7 million. The company’s total assets were valued at MVR 56 million.

Due to the serious financial challenges faced by the company, the Board of Directors approved the transfer of all operations, assets and liabilities to Regional Airports Company Limited (RACL) with effect from 1 January last year. As a result, management concluded that the principle of preparing financial statements on a going-concern basis no longer applies to the company.

According to the report, all assets and liabilities will be transferred to RACL at their values as at 31 December 2024, in accordance with the resolution approved by the Board of Directors. After evaluating the ability to realise those assets and settle those liabilities, management determined that no further adjustments to the values in the financial statements were necessary.

The airport is used for domestic transportation as well as military operations.

The airport development project has been awarded to MACL, under which a 2.8-kilometre modern runway will be installed at Kadhdhoo Airport.