Air India posts first operating profit since 2007 merger with Indian Airlines

The merged Air India has reported Rs 105 crore operating profit in FY 2015-16

Travel News
Travel News

For the first time since the merger of Air Indiaand Indian Airlines in 2007, the merged national airline has posted an operating profit. The merged Maharaja has reported Rs 105 crore operating profit in FY 2015-16 as costs have come down due to a fall in oil prices and because of increase in passenger revenue owing to sharp rise in domestic air travel.

The Air India had posted an operating loss of Rs 2,636 crore in fiscal 2014-15. Fuel prices falling by almost 24% contributed significantly to this turnaround. However, the AI officials said the operating profit came due to improved efficiencies and enhanced network as lower fuel prices meant lower fares so that effect was nullified. Ticket yield fell by almost 8%.

The Air India carried 1.8 crore passengers in 2015-16, up from 1.6 crore in the previous year. In 2015-16, the Air India revenue fell to Rs 20,526 crore from Rs 20,613 crore in 2014-15. Indicating improved operating performance, Ebitdar (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore in last financial year, from Rs 1,436 crore in 2014-15. Due to currency fluctuations, the Air India incurred a forex loss Rs 350 crore in 2015-16.