AIR INDIA POSTS ₹4,600 CRORE OPERATING LOSS IN FISCAL 2019

NEW DELHI: Air India posted an operating loss of around ₹4,600 crore in the last financial year, mainly due to higher oil prices and foreign exchange losses but the debt-laden carrier expects to turn operationally profitable in FY20, according to senior officials.

Reflecting tough business conditions, the airline’s net loss stood at about ₹8,400 crore, while total revenues touched around ₹26,400 crore in FY19, one of the senior officials told PTI.

Another senior official said the airline is projected to post an operating profit of ₹700-800 crore in FY20, provided oil prices do not shoot up significantly and there is no steep fluctuation in foreign exchange rates.

However, the airline incurred an operating loss of ₹175-200 crore in the three months ended June as closure of Pakistan airs pace for I ndi a n c a r r i e r s resulted in higher costs and caused a daily loss of ₹3-4 crore when the restrictions were in place, the official said.

Air India had a loss of ₹430 crore in the four-month period when Pakistan closed its airspace after the Balakot air strikes.

The official noted that load factor and yields are improving for Air India. Load factor is a measure of seat occupancy and yield refers to average fare paid per passenger.

The situation is anticipated to improve further as more widebody planes would be available for operations in the coming months, the official added.

Air India had grounded several of its wide-body aircraft for maintenance and most of them are i n t he process of being inducted into the fleet again.

The airline has a debt burden of over ₹58,000 crore. The official who was quoted first said the carrier is facing a financial crisis and disinvestment is the option.