IASL Posts MVR 181.8 Million Profit in 2025 Despite Mounting Liabilities

Island Aviation Services Limited (IASL), the operator of Maldivian, recorded a net profit of MVR 181.86 million in 2025, reversing a net loss of MVR 2.82 million in 2024, despite continuing to face substantial accumulated losses and liabilities, according to its latest statutory audit report.

The Auditor General’s report shows that the airline’s return to profitability was supported by increased passenger operations, particularly in regional routes, and a government subsidy provided to compensate for state-mandated fare reductions.

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Regional passenger revenue increased by 70 percent to MVR 538.22 million in 2025, while domestic passenger operations generated MVR 1.33 billion. The growth reflects increased activity in the airline’s regional and domestic operations.

IASL also recorded MVR 399.75 million in government subsidy as compensation for reduced fares. The amount was recognised under other income and applied towards outstanding statutory liabilities owed to the Maldives Inland Revenue Authority (MIRA).

Despite the improved performance, the airline has accumulated losses of MVR 1.61 billion and negative equity of MVR 211.34 million by the end of 2025. 

Its current liabilities exceeded current assets by MVR 1.46 billion, indicating continued pressure on its ability to meet short-term financial obligations. Among its outstanding liabilities, IASL owed MVR 1.22 billion to Maldives Airports Company Limited (MACL).

The audit report also shows a contrast in the rising costs associated with maintaining and operating the airline. Aircraft maintenance and overhaul expenses increased by 78.4 percent to MVR 339.01 million, while aircraft rental expenses rose from MVR 22.48 million in 2024 to MVR 92.6 million in 2025, following the introduction of new lease agreements.

Personnel costs increased to MVR 603.57 million in 2025, up from MVR 556.91 million in 2024, while fuel expenses rose to MVR 521.91 million from approximately MVR 478.37 million, an increase of 9.1 percent.

The continued financial difficulties mean that IASL’s ability to remain operational as a going concern is still dependent on government support. Auditor General Hussain Niyazy issued an unmodified opinion on the financial statements but noted that the company’s going-concern status is supported by a 12-month sovereign financial support guarantee from the Ministry of Finance.

The report highlights the contrast between the airline’s return to annual profitability and its continuing financial challenges, with accumulated losses, negative equity and substantial outstanding liabilities remaining despite the improved 2025 result.