Tuesday, July 30, 2019

AI Express reports fourth straight profitable year with profit of Rs 169 crore in FY 2018-19

New Delhi: Air India Express has reported its fourth profitable fiscal in a row with a profit of Rs 169 crore in FY 2018-19, down 35.5% from profit of Rs 262 crore in the previous financial year. The low cost and primarily international arm of AI saw its revenues grow to Rs 4,202 crore in the last fiscal, up 16.1 from Rs 3,620 crore in FY 2017-18.
AI Express CEO K Shyam Sundar said: “The net profit earned last fiscal is particularly significant as the aviation sector has had to face many challenges, including high input costs. The unit cost incurred on fuel alone, increased by around 35% during this period. The impact of this on profitability was huge, as more than 40 % of the airline’s operating cost were incurred on fuel.”
“Despite this we were able to drive-in profit by greater utilization of our assets and resources, like aircraft, manpower and materials. Through concerted cost measures, the airline was able to contain the unit cost incurred on expenses other than fuel to be at the same level as in FY 18,” he added.
AI Express profit in FY 2015-16, 2016-17 and 2017-18 was Rs 362 crore, Rs 297 crore and 262 crore, respectively. The four years of profit, though declining due to increasing costs, came after a loss of Rs 61 crore in 2014-15.
The number of passengers flown by AI Express was 43.6 lakh last fiscal, up 12% from 38.9 lakh in FY 2017-18 and its international carriage grew by 10.5% during this period. “This success would not have been possible, without the trust our valued customers placed in us by choosing us over other options,” Sundar said.
30/07/19 Saurabh Sinha/Times of India
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