For 2nd straight month, AI makes operating profit

Air India Ltd has doubled its net profit in December over November on strong passenger growth, ending a trend of consecutive monthly losses going back to 2006, said two officials familiar with the development.
Analysts pointed out the profit months fall in the peak season for airlines—October to December. Although a positive development, the national flag carrier will have to sustain this performance before it can be considered on the road to recovery.
Air India posted a cash profit, or operating surplus, of nearly Rs.50 crore in December, following a surplus of Rs.21.66 crore in November, said a company executive. The trend is likely to continue in January, he added, asking not to be named.
An aviation ministry official confirmed this. He also wanted to remain anonymous.
The state-run airline had posted a net loss of Rs.12,740 crore in the 2008-09 and 2009-10 financial years. It also posted losses from April to October 2010, but is yet to make the sum public.
The number of passengers carried by Air India grew 17.3% in the December quarter, while India’s overall domestic passenger count grew by 19%.
04/02/11 P.R. Sanjai/Live Mint

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Categories: Air India Feb 2011