Sunday, February 04, 2018

Costly fuel to crimp Air India Express FY18 net to under Rs 200 crore

Air India Express, the international low-cost arm of the flag carrier, may see a plunge in profit in fiscal 2018 at around Rs 200 crore, down from Rs 297 crore booked in the previous year, driven down by rising fuel bills and a higher payout to the parent Air India.

The Kochi-headquartered Air India Express operates 555 flights a week, with a fleet of 23 Boeing 737 planes. It plans to induct two more such aircraft planes by August-September, according to a senior official.

The airline will also be the first to operate to and fro from the upcoming Kannur international airport in its home state Kerala where it deploys over 65 percent of its capacity.

"This time around I expect the bottomline to print in at around Rs 200 crore," K Shyam Sundar, the chief executive officer at the airline, told PTI here over the weekend without ascribing a reason.

In fact, reflecting the fuel prices, in the last year also, its profit was lower than the previous year. After the first Rs 100 crore profit in FY15, its profit soared to Rs 361.7 crore in FY16 but came down to Rs 296.7 crore in FY7.

But it can be noted that all the airlines have had an easy life last fiscal as crude oil hovered USD35-40 a barrel throughout the year, but the same is trending at USD 70 and the average for this year could be around USD 60 a barrel. Which is an almost 50 per cent spike over the last year’s average.

04/02/18 PTI/