Kochi

Air India Express clocks net profit for second year

The airline’s revenue during 2016-17 shot up by 14% to ₹3,335 crore.

The airline’s revenue during 2016-17 shot up by 14% to ₹3,335 crore.  

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Positive financial outcome attributed to drop in unit costs

Braving economic headwinds from the Middle East, Air India Express (AIE), the Kochi-headquartered no-frills arm of the national carrier, has registered net profit for the second consecutive year.

According to the accounts placed and approved by the airline’s board of directors, the company clocked a net profit of ₹296.7 crore in the financial year 2016-17, as against ₹361.68 crore in the previous fiscal. The positive financial outcome is attributed to a 5 to 7% drop in unit costs.

According to an official statement, the airline’s revenue during the period shot up by 14% to ₹3,335 crore. Similarly, the average daily aircraft utilisation rose to 12.2 hours from 11.3 hours, while the capacity offered went up by 33% with the fleet size increasing through the year from 17 to 23 aircraft.

The period also witnessed the airline expanding its operations out of Delhi and Mumbai to Kolkata and Chandigarh. In fact, AIE introduced operations on 11 new routes during the period, besides increasing its capacity on 13 sectors.

Consequently, the number of passengers carried increased by 22% to reach 3.42 million from 2.8 million in 2015-16.

“The net profit earned in 2016-17 is particularly significant as competition from Indian private carriers increased considerably during the year. Added to that was the sluggishness of Gulf economies where 90% of our capacities are deployed and the large increase in capacity offered by the airline. We had to strive harder to achieve this success. ,” said K. Shyam Sundar, Chief Executive Officer, AIE.

Interestingly, AIE’s latest results come at a time when the Union government is going ahead with the divestment of the debt-ridden Air India.

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Printable version | Jan 26, 2020 1:09:20 AM | https://www.thehindu.com/news/cities/Kochi/air-india-express-clocks-net-profit-for-second-year/article19192272.ece

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