Saturday, January 19, 2019

Air India Express to post profit this year, too

Mumbai: Air India Express, the regional international subsidiary of beleaguered state-run carrier Air India, is looking at its fourth straight year of net profit in 2018-19, bucking the trend at a time when most domestic airlines are grappling with losses and financial stress.
The budget airline is likely to post a net profit of about Rs 250 crore for the full year ending March 31 compared with Rs 262 crore in the previous year, chief executive officer K Shyam Sundar told ET in an interview. Revenue for the full year is estimated to come in at Rs 4,100 crore compared with Rs 3,612 crore in the previous year, he said.
Air India Express connects non-metro cities in India to neighbouring international destinations, especially in the Gulf region.
While the earnings have been a tad impacted by high fuel prices, they show a robust performance at a time when the industry is estimated to post operating losses of close to Rs 10,000 crore. Air India, like always, is expected to account for the biggest chunk of the losses. The airline posted a net loss of Rs 5,337 crore in FY18, down 18% year-on-year. An attempt to sell it failed last year. The government is now working on a fresh turnaround plan for the airline.
19/01/19 Anirban Chowdhury/Economic Times