Losses were curbed to Lm3.1 million (€7.2 million) from Lm6.2 million (€14.4 million), as the airline flew a record of over two million passengers in one year. Speaking on Monday, Minister for Investment, Industry and Information Technology Austin Gatt said that these results are the fruit of both difficult decisions and the implementations of certain measures by the company including  outsourcing certain services and cutting down on costs.  

Dr Gatt said international oil prices have affected the company, adding that had prices been lower, the company would have registered profit in the past two years.  

The Minister also noted that the upcoming summer will be crucial for target in the 2004 pact to be reached. Among the measures in the agreement were caps on non-cost of living wage increases for three years, more flexibility in work practices and the formation of a "Works Council". The agreement was signed by the government and the airline's employees to acknowledge the problems that the company was facing at the time. In fact, during the same year, Air Malta registered Lm26million in losses.  

The 2004 pact will not be renewed and Union will settle for workers’ collective agreements separately instead.

See also:
Unions, Airmalta sign agreement - May 26, 2004, 19:40 CET
Air Malta Group Lm26 million in the red - Jul 2, 2004, 08:01 CET