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  • Air India Cuts Losses Significantly in FY16

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    ug121
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    Air India significantly cut its losses in the 2016 fiscal year. It reported a loss of Rs. 3,837 crore for fiscal year 2016 compared to a loss of Rs. 5,859 crore in the previous year, a 34% decrease. This was helped by lower fuel prices and higher aircraft utilization, resulting in Air India reporting an operating profit of Rs. 105 crore for the first time since its merger in 2007. While total revenues marginally declined by 0.42% due to falling yields as lower fuel costs were passed on to passengers, the airline was able to improve seat capacity utilization and cut its losses substantially.

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    Air Cuts

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    Air Cuts

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    Air India significantly cut its losses in the 2016 fiscal year. It reported a loss of Rs. 3,837 crore for fiscal year 2016 compared to a loss of Rs. 5,859 crore in the previous year, a 34% decrease. This was helped by lower fuel prices and higher aircraft utilization, resulting in Air India reporting an operating profit of Rs. 105 crore for the first time since its merger in 2007. While total revenues marginally declined by 0.42% due to falling yields as lower fuel costs were passed on to passengers, the airline was able to improve seat capacity utilization and cut its losses substantially.

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    47 views1 page

    Air India Cuts Losses Significantly in FY16

    Uploaded by

    ug121
    Air India significantly cut its losses in the 2016 fiscal year. It reported a loss of Rs. 3,837 crore for fiscal year 2016 compared to a loss of Rs. 5,859 crore in the previous year, a 34% decrease. This was helped by lower fuel prices and higher aircraft utilization, resulting in Air India reporting an operating profit of Rs. 105 crore for the first time since its merger in 2007. While total revenues marginally declined by 0.42% due to falling yields as lower fuel costs were passed on to passengers, the airline was able to improve seat capacity utilization and cut its losses substantially.

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    of 1

    10/15/2016

    www.businessstandard.com/article/printerfriendlyversion?article_id=116101401255_1

    AirIndiacutslossessignificantlyinFY16
    TheairlinecutitslossessignificantlytoRs3,837crinFY16ascomparedtoRs5,859crinthepreviousfiscal,asteepfallof34%
    BSReporter|NewDelhiOctober14,2016LastUpdatedat21:24IST
    Helpedbylowfuelpriceandhigheraircraftutilisation,state
    runcarrierAirIndiahasanoperatingprofitofRs105crore
    duringthe2016fiscal.Thisisthefirsttimetheairlinehas
    madeoperatingprofitsinceitwasmergedin2007.The
    resultswereapprovedbytheboardtoday.
    TheairlinecutitslossessignificantlytoRs3,837croreinFY
    16ascomparedtoRs5,859croreinthepreviousfiscala
    steepfallof34percent.
    "OperatingprofitsEarningsbeforeinterestcostimproved
    in201516fromalossofRs2,636crorein201415toa
    marginalprofitofRs105croresin1516,"saidaseniorAir
    Indiaofficial,whodidnotwanttobeidentified.
    ThisisthefirsttimethatthemergedentityAirIndiaand
    IndianAirlinesweremergedintoonein2007madean
    operatingprofitsinceitsmerger.
    Theairlinesaidthatcapacitydeployedwiththesamenumber
    ofaircraftwentupby4.8percent,resultinginimprovement
    inseatfactorfrom73.7percentto75.6percent.
    Totalrevenuefortheperiod,however,declinedmarginallyby
    0.42%fromRs20,613crorein201415toRs20,526crorein
    201516,saidtheairline.
    Thefallinrevenueswereduetofallingyields."Yieldsfellby7.7percentasthebenefitofdecreaseinfuelcostwaspassedontothepassengers,"theairline
    said.

    http://www.businessstandard.com/article/printerfriendlyversion?article_id=116101401255_1

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