## 2.2 Financial Results 

In the year under review, the Corporation recorded a loss of P42.10 million, a significant decline in performance from prior year loss of P12.35 million. Income including Government grants decreased by P78.61 million from P417.37 million in the previous year to P338.77 million in year under review. The traffic revenue decreased by 7% (P23.30 million) mainly due to reduction in passenger numbers by 6%. Operating costs declined by P48.86 million (representing 11.37%) from P429.72 million in the prior year to P380.86 million in the year under review. 

Significant reductions in expenditure were mainly due to: 

 The 25% (P12.26 million) reduction in cost of fuel as a result of discontinued Harare, Lusaka and Cape Town routes. 

 Maintenance of aircrafts went down by 23% (P12.34 million) mainly because there were C-checks and D-checks in the previous year. 

## 2.3 Working Capital 

 Staff costs declined by 12% (P16.71 million) 

 Airport navigation fees declined by 33% (P6.22 million) 

 Aircraft lease costs decreased by 96% (P24.42 million) 

 Professional fees declined by 63% (P7.72 million) 

The working capital position of the Corporation as at 31 March 2018 showed total current assets of P219.46 million and total current liabilities of P114.13 million resulting in a net current assets position of P105.33 million. 

Included in the current assets is P130.16 million for non-current assets held for sale which are two ATR 42-500 turboprop aircraft and one ATR 72 -500 turboprop aircraft. The Corporation signed trade-in agreements on 12 June 2018 to sell the aircrafts classified as assets held for sale as at 31 March 2018 and purchase two ATR72-600 Aircraft. 

## 3.0 Management letter 

The following were some of the matters raised by the auditors and the management responses thereto: 

