Air India financial performance improves
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Air India has increased its revenues by 40% and reduced its net losses by more than 22% over the past four years, it has been revealed.
The Economic Times reported India’s Civil Aviation Minister, Ashok Gajapathi Raju, as telling parliament this week that the national carrier’s financial position has gradually improved since the 2011-12 fiscal year, with net losses narrowing from INR51.39 billion (approx. US$769 million) four years ago to INR26.36bn in the 2014-15 financial year.
In that period, Air India’s turnover jumped from INR147.14bn to INR206.06bn, the minister said.
And the airline’s earnings before tax and other items (EBITDA) actually registered a positive figure in 2014-15, at INR3.38bn, compared to a negative INR22.36bn in 2011-12.
Last month, a senior Civil Aviation Ministry official predicted that Air India would turn a small profit in the 2015-16 financial year. But with the minister revealing that the airline’s expenses have outweighed its revenues in the first half of the year, this seems unlikely to happen.
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