Surging ATF prices dent Air India profit

Mumbai: Weighed down by surging jet fuel prices, Air-India’s net profit plunged by a huge 82.54 per cent at Rs 16.29 crore for the year 2005-06. The net profit for the year 2004-05 was Rs 93.31 crore. Fuel constituted a third of the airline’s total cost.
The fuel bill of Air-India, including its subsidiary which runs low-cost carrier Air-India Express, shot up by 43.62 per cent during the last financial year at Rs 3,134 crore against Rs 2,182 crore during 2004-05.
Company sources said the loss due to higher aviation turbine fuel (ATF) prices was in excess of Rs 650 crore. Total revenue from operations grew 25 per cent at Rs 9,677 crore for the last financial year, against Rs 7,751 crore in 2004-05.
26/09/06 PR Sanjai /Business Standard

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