Airmalta wing

Taxpayers have paid €1.5 million in wages to employees of Air Malta despite the airline ceasing operations 18 months ago, Opposition MP David Agius has revealed.

Finance minister Clyde Caruana confirmed in a parliamentary reply this week that 19 people remain on Air Malta’s books, with a monthly expense of €82,448.59. The airline officially closed on 30 March 2024, when its successor KM Malta Airlines commenced operations.

Agius calculated that between April 2024 and September 2025, taxpayers paid €1,484,074.62 to the remaining workers, an average of €82,448 monthly over 18 months. “We still have some to pay because to this day the workers are still there and of course they are still getting paid,” he wrote on social media.

The Opposition MP also questioned whether two employees at the defunct company earn more than €70,000 annually, though this query received no response.

The revelation comes after Agius submitted six parliamentary questions seeking clarity on Air Malta’s remaining workforce and associated costs since closure.

Air Malta’s dissolution represents a substantial financial burden for Maltese taxpayers. The airline accumulated €356 million in losses over two decades, which were absorbed by the state. Additionally, approximately €61 million was paid to 350 former employees who opted for government early retirement schemes, whilst loyalty programme compensation cost around €1.7 million.

The government initially committed €350 million to establish KM Malta Airlines, though the 2024 budget later allocated €215 million for the new carrier’s launch and operations.

The closure followed the European Commission’s rejection of a state aid request, deemed incompatible with EU competition rules. KM Malta Airlines operates as a leaner entity, with government plans to eventually privatise 30-35% of the company.

The ongoing wage payments to 19 employees add to the estimated €300 million total cost of Air Malta’s dissolution.

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