The Hindu Business Line : IA posts Rs 3.90-cr net loss during April-July

THE additional financial burden owing to the rise in the price of aviation turbine fuel (ATF) notwithstanding, Indian Airlines (IA) is on course for a turnaround in its financial performance.

The airline has reported a modest net loss of Rs 3.90 crore for the period April-July this year as against a net loss of Rs 64.50 crore incurred during the same period in the previous year.

IA registered a net loss of Rs 41.25 crore during fiscal 2003-04, while recording an operating profit of Rs 15.25 crore during the same period.

The airline had last registered profits for the entire year in 1999-2000.

The improved financial performance during the current fiscal, official sources said, is on the back of increased seat factor, which refers to the number of passengers carried and higher capacity utilisation.

The airline has also reported an operating profit of Rs 8 crore during April-July this year as against an operating loss of Rs 37.45 crore recorded during the same period in the previous year.

Official sources said that the actual financial performance of the airline during the first four months of the current fiscal also marked an improvement over the Budget estimates for this period.

"As against a budgeted net loss of Rs 38.91 crore, IA has recorded a net loss of Rs 3.9 crore. Similarly, as against the budgeted operating loss of Rs 24.33 crore, the airline has earned an operating profit of Rs 8 crore," sources said.

During April-July this year, IA achieved a total revenue of Rs 1,719.40 crore as against the budgeted level of Rs 1,613.56 crore during the same period last year.

The number of passengers carried during the period under review stood at 2.35 million as against a budgeted level of 2.07 million.

The seat factor, in percentage terms, improved during April-July this year to 65.1 per cent as against the budgeted level of 60.2 per cent.