Air India slumps to another loss
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Air India has posted yet another quarterly loss.
The national carrier reported an operating loss of INR2.46 billion (approximately US$37 million) for the first quarter of the Indian financial year. This did mark a slight improvement compared to the INR3.16bn loss recorded in the same period last year, but was well below the airline’s forecast of a INR870m operating profit.
India is experiencing an unprecedented boom in terms of domestic air travel, and international visitor arrivals are also seeing double-digit growth. These factors, combined with lower fuel prices, have allowed the majority of Indian airlines to post strong – often record – profits. Not so Air India.
The airline’s revenues increased only marginally in the first quarter, by 2.6% to INR47.24bn. And the Economic Times cited an official with India’s Ministry of Civil Aviation, who wished to remain anonymous, as saying that this is “surely a concern”.
Air India is also facing huge debts, with the Economic Times reporting its annual repayments as being in the region of INR40bn.
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