Thursday, February 04, 2016

Air India Express expects net profit of Rs 200 crore in FY16

Air India Express, the low-cost subsidiary of Air India airline, hopes to post a net profit of approximately Rs 200 crore in FY 2016-2017. The airline reportedly posted a net loss of Rs 60 crore in the previous year.

Due to a fall in Aviation Turbine Fuel prices and higher seat occupancy of about 83 percent, K Shyam Sundar, CEO of Air India Express, said the company expects to post a net profit of Rs 200-250 crore during the financial year 2016-2017, Mint reported.

In order to improve profitability by saving interest costs, the company plans to convert its rupee loans into dollar loans.

The Kochi-headquartered airline will be able to get dollar loans at about three percent rate, if it manages to raise funds via ECB, otherwise the company will get rupee loans at a rate of 13 percent. The company is currently in talks with bankers and banks such as State Bank of India.
04/02/16 Kalyani Pandey/International Business Times

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