Finally, Air India records profit after long spell of losses

After a long spell of losses, national carrier Air India recorded a net profit of Rs 14.6 crore (Rs 146 million) in last December, driven by a healthy growth in both passenger and cargo revenue.

The airline's total revenue rose by 6.5 per cent to Rs 2,070 crore (Rs 20.70 billion) during December 2014 as compared to Rs 1,944 crore (Rs 19.44 billion) in the same period of 2013, official sources said here.

"AI estimates passenger revenue of Rs 16,500 crore (Rs 165 billion) during the fiscal 2014-15 and a total revenue of nearly Rs 21,500 crore (Rs 215 billion). Together with our subsidiaries, the consolidated revenue is expected to touch Rs 25,000 crore for this financial year," they said.

Air India's passenger revenue logged a 13.5 per cent growth to Rs 1,563 crore (Rs 15.63 billion) in December last year as compared to Rs 1,377 crore (Rs 13.77 billion) in December 2013, resulting in the airline posting a profit of Rs 14.6 crore (Rs 146 million) during the period as against a net loss of Rs 168.7 crore (Rs 1.68 billion), sources said.

The Airline's revenue passengers increased by a healthy 17.5 per cent to 1.61 million in the reporting period as compared to 1.37 million in December 2013, they said.

Besides, the seat factor also rose to 77.7 per cent from 76.3 per cent achieved in December 2013, the sources said, adding the domestic load factor stood at a record high of 86 per cent.

According to the Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA) report published last June, the domestic airline industry is expected to post losses to the tune of Rs 7,807-8,408 crore in FY15 as against over Rs 10,000 crore (Rs 100 billion) in the previous fiscal.

The airline's cargo revenue during the reporting month increased to Rs 124 crore (Rs 1.24 billion) from Rs 115 crore (Rs 1.15 billion) a year-ago period, thereby registering a 7.5 per cent.

At the same time, the company reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 484.2 crore (Rs 4.84 billion) during the period as compared to an EBITDA of Rs 308.9 crore (Rs 3.08 billion).

The operating profit during December 2014 stood at Rs 183 crore (Rs 1.83 billion) as compared to only Rs 2 crore (Rs 20 million) in December 2013, they said adding the aircraft utlisation daring the period was quite higher during the reporting period.