Lebanese flag-carrier Middle East Airlines is claiming a full-year net profit of $88.8 million for 2023, despite the economic stresses on the country and the initial indications of regional conflict.
MEA says the profit figure – up 85% from 2022 – follows a 20% increase in passenger revenues, to $725 million, while expenses rose by just 13%.
Around 55% of the revenues was sourced through services between Beirut and Middle Eastern destinations, with another 39% attributed to European flights and the remainder to African routes.
Lebanon has been experiencing the “biggest crisis” since its independence, says MEA, with the combination of the pandemic, the Beirut port explosion in 2020, a collapse of the economy, and the impact of the Israel-Gaza conflict.
Currency depreciation and hyperinflation have resulted in differing exchange rates emerging, says the carrier, outside of the official peg of LL15,000 to the US dollar imposed in February 2023 – itself a sharp decline from the previous rate of just over LL1,500.
The situation has been exacerbated, MEA says, by the continuing Gaza conflict which spread to Lebanese territory this year.
It says this has led to “massive economic losses” for Lebanon, which could lead to the “erosion” of currency-exchange rates and the purchasing power of the population.
MEA had outstanding capital expenditure commitments amounting to $900 million at the end of 2023, including the acquisition of four Airbus A330neo and six A321neo aircraft.
One of these 10 jets has since been delivered. MEA says the remaining schedule comprises the arrival of six other aircraft in 2026, two in 2027 and the final one in 2028.
