Air Mauritius Converts $176M Loan to Equity for Recovery
Air Mauritius has secured a major financial boost with the conversion of a MUR8.05 billion (USD176 million) loan into equity by its parent company, Airport Holding Ltd (AHL). The loan-to-equity move strengthens the airline’s capital base and ensures continued financial support when needed.
In a March 31 statement, the airline confirmed its commitment to improving operational efficiency and performance, with expectations for positive financial results in the 2025/26 fiscal year. The carrier also reassured passengers and stakeholders that it has no plans to cease operations.
Originally issued in 2022, the loan remained as debt for two years, which airline chairman Kishore Beegoo said negatively impacted Air Mauritius’ credit profile. Beegoo, appointed in January 2024, attributed the delay to past mismanagement and noted that converting the debt into equity should have happened earlier. The conversion was finalized in February 2025 and has helped the airline address its technical insolvency.
According to local reports, the debt was transformed into non-voting, convertible, and redeemable preference shares (NCRPS). This has positioned the airline to move forward with plans to stabilize operations and address long-standing financial issues.
Air Mauritius is now working with the government to raise an additional MUR2 billion (USD44 million), with shareholder support among the funding options. An estimated MUR1.2 billion (USD26 million) in unflown ticket revenue is also expected to contribute to liquidity.
Beegoo aims to implement a recovery plan that will recoup MUR2 billion within a year and guide the airline back to profitability by 2026.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com