Caruana again dodges questions over KM Malta’s finances as airline in dire straits

Finance Minister Clyde Caruana has again deferred answers about KM Malta Airlines’ finances, promising to publish its accounts at an unspecified date while accusing unnamed people of working to undermine the national carrier.

Speaking at a pre-budget event, Caruana was asked why the airline had yet to publish accounts more than two years after starting operations.

He offered no publication deadline, despite the law requiring it.

Instead, he said he would explain the airline’s history when he considered the moment appropriate, including through a debate with the opposition.

His limited answers provided no figures on profitability, accumulated losses or the airline’s dependence on public funding, which The Shift is informed runs into many millions and is still ongoing.

Avoiding answering questions, Caruana alleged that people wanted the airline to fail. He did not identify those he accused or provide evidence of their alleged interference.

On plans for partial privatisation, the minister said confidentiality agreements had been signed with major airlines and discussions were ongoing. He said he had two possible plans to secure KM Malta’s future, without identifying potential investors or announcing a timetable.

Citing senior company sources, The Shift revealed that Amsterdam was KM Malta’s only profitable route.

Services to London, Rome and Paris reportedly lost money, while overall losses reached double-digit millions.

Sources also sadi that payroll had increased by approximately 30% despite a substantially smaller workforce than Air Malta’s.

KM Malta began flying on 31 March 2024, replacing Air Malta following its closure.

The government committed €350 million to its establishment, comprising €50 million in working capital and approximately €300 million in aircraft and other assets.

The Shift also reported undisclosed support through the Malta Tourism Authority’s marketing budget, raising further questions about the carrier’s reliance on taxpayers.

The first accounts were initially expected in October 2025. Caruana subsequently told parliament that an extension allowed publication in the first quarter of 2026.

Still, no accounts were published.