Air India is no more a loss making company. It has reported operating profit of Rs 105 crore in second quarter!
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No longer can The state-owned airline, which is working on ways to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15, as per report by agency.
This is the first time since 2007 -- when the erstwhile
Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources told the news agency.
Fuel costs going down by 24% and a lot of promotional offers are being credited for the profit.
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According to the sources, the benefits of lower fuel costs were passed on to passengers, which are also reflected in terms of lower yield during the last fiscal. Yield -- an indicator of ticket prices -- declined by 7.7 %.
In 2015-16, Air India carried 18 million passengers, registering a growth of 6.6 %. In the comparable period, the same stood at 16.88 million, they added.
However, in 2015-16, the carrier saw its revenue slide to Rs 20,526 crore from Rs 20,613 crore in 2014-15.
Indicating improved operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore last financial year, from Rs 1,436 crore in 2014-15.
Last fiscal, the airline's capacity deployment and aircraft utilisation went up by 4.8 per cent and 7.5 per cent, respectively.
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On account of currency fluctuations, the carrier incurred a forex loss Rs 350 crore in 2015-16.
Air India is staying afloat on a Rs 30,000-crore bailout extended by the government.
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