Kadhdhoo Airport Company Losses Reach MVR 325 Million, Audit Reveals

Financial audit reports released by the Auditor General’s Office reveal that Kadhdhoo Airports Company Limited recorded a net loss of MVR 29.5 million by the end of last year, pushing the company’s total cumulative losses over past years to MVR 325.1 million.

According to the audit document, the company generated MVR 11 million in revenue last year while incursions reached MVR 38.7 million. The report indicates that the total value of the company’s assets currently stands at MVR 56 million.

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Following significant financial challenges, the company’s board of directors passed a resolution to transfer all operations, fixed assets, debts, and liabilities to Regional Airports Company Limited (RACL), effective retroactively from 1 January of last year. Consequently, management determined that the company no longer satisfies the “going concern” basis for preparing financial statements.

The report states that all assets and liabilities will transfer to RACL at their carrying values as of 31 December 2024. After assessing the settlement amounts and realizable value of these holdings, management concluded that the financial statements required no further adjustments.

Laamu Kadhdhoo Airport serves domestic flights and designated military operations. President Muizzu’s administration has slated the facility for international-grade redevelopment.

The government assigned the upgrade project to Maldives Airports Company Limited (MACL). Plans indicate the final development will feature a modern 2.8-kilometre runway upon completion.