Egypt Air’s dues to EGPC have expanded to reach EGP 7b, rising from EGP 5.5b in under six months, reported Al Borsa.
Egypt Air has stopped paying for the fuel, which lead to the escalation of their debt, said an official at EGPC. This is in addition to monthly premiums it owes for old debts.
He added that Egypt Air, stopped paying off its EGP 25m monthly installments, while the company consumes fuel worth between EGP 450 and 500m a month.
Egypt Air has been suffering financially since the January 2011 revolution and with the latest bows to tourism the company’s cumulative losses have reached EGP 10b by the end of 2015. Currently, only 71 of its fleet of 81 aircraft are still operating.
If these adverse political circumstances continue the fear is that the airline’s plans to reduce its losses to zero by the end of the fiscal year will come undone, having already reduced its losses to EGP 718m from the original figure of EGP 3b the previous fiscal year.