Air India Posts Rs. 4600 Crore Operating Loss In 2018-19 Due To High Oil Prices, Aims Profit This Fiscal Year
Air India’s future looks grim as it has posted Rs 4600 crore of operational losses due to high oil prices and foreign exchange losses.
The financial statement of Air India showed a rather bumpy lane ahead for the airline as the net loss stood at around Rs 8400 crore as total revenue earned reached to Rs 26400 crore in the fiscal year 2018-19, one of the senior officials of Air India, reported The Economic Times.
However, a senior official told that the airline is expected to earn an operating profit of Rs 700 to 800 crore in 2019-20 if the oil prices don’t shoot up unprecedentedly and foreign exchange rates remain constant.
“The airline incurred an operating loss of Rs 175 to 200 crore in the three months ended June as the closure of Pakistan airspace for Indian carriers resulted in higher costs and caused a daily loss of Rs 3 to 4 crore when the restrictions were in place,” the official said.
Air India suffered a huge loss of Rs 430 crore since February as Pakistan closed its airspace after the Balakot airstrikes. The official further pointed out that load factor and yields are improving for Air India. Load factor is a measure of seat occupancy and yield refers to the average fare paid per passenger.
Aviation consultancy CAPA South Asia CEO and Director Kapil Kaul said Air India’s financial position may “significantly improve” in the current financial year.
“CAPA expects closer to break-even in FY 20 excluding increased costs incurred due to closure of Pakistan airspace. With oil prices expected to stay below USD 60, expect closer to break-even for Air India in FY 20,” he said.
Air India still relies on the Centre for its smooth functioning. However, the CEO aims to make the airline self-reliant. With the business witnessing a record low level for Air India, the airline has launched ‘Ghumo India discount’, from September 1.
#FlyAI : The fares are fair enough for a family holiday to cherish.
Plan your family holidays with #maharajah’s special #ghumoindia fares. Visit airindia booking office or authorized travel agent to avail offer. #familytime #familyfun #familymoments . pic.twitter.com/SNdAfE8onv
— Air India (@airindiain) September 4, 2019
The 25 per cent discount can be availed from September 01, 2019 till March 31, 2020, by the family of a minimum of three members comprising of Spouse, Children and Head of the family setting a prerequisite condition of travelling together with the entire journey.
Air India is the airline of India headquartered at New Delhi. It is owned by Air India Limited, a government-owned enterprise, and operates a fleet of Airbus and Boeing aircraft serving 94 domestic and international destinations.