Air India has not been able to meet the earnings target set for FY14 and would report losses of around Rs 5,400 crore at the end of the financial year, as against the target of Rs 4,000 crore primarily due to high operational costs. The national carrier, however, is likely to meet the revenue target set for FY14.
These estimated figures were discussed in a board meeting of the national carrier held in February and drew flak from the independent directors, who want the airline to improve its financial performance.
“We will be able to achieve the revenue target for the current fiscal and the losses are primarily because of the increase in cost of operations including high oil prices,” said a senior Air India official.
The second quarter of the current fiscal was the worst quarter for the airline, when it missed its revenue target by over Rs 700 crore due to lower passenger load and a fare war in the domestic market.
The airline would also not be able to meet the target of making an operational profit of Rs 1,040 crore and is likely to report operational profit of Rs 770 crore.
31/03/14 Mihir Mishra/Indian Express
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These estimated figures were discussed in a board meeting of the national carrier held in February and drew flak from the independent directors, who want the airline to improve its financial performance.
“We will be able to achieve the revenue target for the current fiscal and the losses are primarily because of the increase in cost of operations including high oil prices,” said a senior Air India official.
The second quarter of the current fiscal was the worst quarter for the airline, when it missed its revenue target by over Rs 700 crore due to lower passenger load and a fare war in the domestic market.
The airline would also not be able to meet the target of making an operational profit of Rs 1,040 crore and is likely to report operational profit of Rs 770 crore.
31/03/14 Mihir Mishra/Indian Express
