Riding on high yields and an increased passenger load factor, State-owned Air India posted a healthy 46 per cent revenue growth last month over the same period last year, airline sources said today.
“The yields on domestic sector had significant improvement of 38.5 per cent in March vis-a-vis last year. The seat factor during this period also increased nearly 7.9 per cent. Consequently, the airline posted a healthy growth in revenue of 46.1 per cent,” the sources told PTI.
On international routes too, the airline put up a good performance, clocking a nearly 33 per cent growth in passenger revenue. The higher growth came on the back of an eight per cent jump in load factor and higher yields at 28 per cent.
“For the quarter ending March this year, the passenger revenue showed an improvement of 36.1 per cent, besides a 15.7 and 23 per cent rise in seat factor and yields respectively over the same period last year,” the sources said.
On a cumulative basis, the revenue for fiscal 2012 posted a growth of 13 per cent with load factor of 5.7 per cent, they said, adding that the yields were up nearly 10 per cent.
The results came a week after the government approved the much-awaited turnaround plan and a financial restructuring plan involving a Rs. 30,000-crore equity infusion over the next eight years and a debt recast (CDR) of Rs. 21,200 crore.
The financial restructuring plan would provide relief to Air India from its debt servicing obligations on working capital loans in the form of a substantial reduction in interest outlays, while giving it the necessary time to improve its operational efficiency.