PSU Watch logo

| HPCL partners with ICICI Bank for fuel payments |   | ONGC’s second well in KG-DWN-98/2 block has started production: CMD |   | India, Australia hold first Joint Working Group meet on coal, mines |   | NBCC secures biggest-ever overseas project in Maldives |   | THDC's Tehri Dam achieves full potential of 830m capacity |  

Air India Express registers profit for 4th year in a row

Air India Express flew 4.36 million passengers in the last financial year, up from 3.89 million people it carried in fiscal year 2017-18
New Delhi: Air India Express posted a net profit of Rs 169 crore in financial year 2018-19 on the back of higher utilisation of aircraft and manpower. This was the fourth straight year of profitability for the airline which the government is seeking to disinvest.

16% growth in revenues

The low-cost arm of the national carrier Air India registered a 16 percent growth in revenues at Rs 4,202 crore in 2018-19 as opposed to 3,620 crore in financial year 2017-18. “The net profit earned in the last fiscal is particularly significant as the aviation sector has had to face many challenges, including high input costs. The unit cost incurred on fuel alone, increased by around 35 percent during this period,” Air India Express CEO K Shyam Sundar said. “The impact of this on profitability was huge, as more than 40 per cent of the airline's operating cost were incurred on fuel,” the CEO added. He attributed the profit to greater utilisation of assets and resources like aircraft, manpower and materials.

The backdrop

Air India Express flew 4.36 million passengers in the last financial year, up from 3.89 million people it carried in fiscal year 2017-18. “Average daily aircraft utilisation rose to 13.3 hours (in 2018-19), from the 12.7 hours in the previous year, which in turn led to an increase in capacity,” the release said. Armed with a fleet of 25 Boeing 737-800 NG planes, the low-cost airline operates from 13 international and 20 Indian destinations.