Air Malta has halved its losses between 2013 and 2014 to €16 million, but Air Malta's chairperson Maria Micallef warned that this is the airline's last chance to get it right.

"The reality is that this is Air Malta's last chance for long term survival. We have 17 months to get this right.

"If we are to make this work, and I am confident we will, we need everyone's support. In some cases, this means holding back. That is my message to politicians, both government and opposition.

"We need to get out of restructuring mode and start thinking of long-term sustainability beyond 2016. We will need the economies of scale that we can never achieve with our size,"Ms Micallef said during a press conference after the company’s annual general meeting.

According to Air Malta's restructuring plan, the airline was supposed to be profitable by the financial year ending 2014.

Speaking during the airline's annual general meeting, Ms Micallef said the loss in revenue from the Libya route alone amounted to €1 million per month. She said the security situation in Libya is being monitored daily.

"It was very clear to the board that management must immediately embark on a cost reduction focused program to ensure that the airline minimises the effect of this revenue hit.

"The target for the next financial year is a loss of €16 million," Ms Micallef said.

She said Air Malta's employees have been "very inspiring" and the number of cost-cutting initiatives coming from every level of the company is encouraging.

Several vacant positions have now been filled, and an international recruitment process in under way to fill the positions of commercial officer and a financial officer.

Tourism Minister Edward Zammit Lewis said the government is committed to transforming Air Malta into a commercially viable company.

He said there have been no problems with the European Commission insofar as the restructuring plan goes. 

Airline to work more closely with stakeholders - CEO

Air Malta's newly-appointed CEO Philip Micallef said one of the key missions of the new management team is to work much more closely with the Malta Tourism Authority and other key stakeholders.

"The MTA and Air Malta have a joint responsibility to attract tourism to the Maltese islands. In the past, the two entities complemented each other's work but did not combine their resources as effectively as they could.

"We are holding joint meetings with tourism operators in various markets as Air Malta seeks to intensify its presence in foreign markets. We have entered into a new era of positive collaboration."

He said the airline will be looking into various measures to boost revenue. He said a specific plan will be put in place to attract weddings to Malta, in collaboration with MTA and local wedding planners.

"Air Malta will also make a shift next year when it comes to baggage. Instead of focussing on weight, we will focus on pieces, in line with what most other carriers in Europe are doing and this will also increase our revenues," he said.