The Hindu Business Line : IA posts provisional net profit of Rs 30 cr in April-July

INDIAN Airlines has recorded a provisional net profit of Rs 30.05 crore during the first four months of the current fiscal compared to a loss of Rs 3.9 crore recorded during the same period in the previous year.

In a statement, the airline has said that it has recorded a net profit of Rs 1.6 crore during July this year compared a loss of Rs 9.85 crore during the same period in the previous year. The airline has reported a provisional net profit of Rs 28.45 crore during the first quarter of the year.

The sound financial health of the airline could boost its plans of entering the capital market with an initial public offer (IPO). The airline recently received bids from merchant bankers for the IPO that has been cleared by IA's board and the Government. The proposal will have to be cleared by the Union Cabinet before it can come up with an IPO. The airline is expected to enter the market either late this year or early next and is likely to divest up to 15 per cent.

The provisional net profit reported during July this year is the highest recorded during the month in the history of IA, the statement said. Incidentally the provisional net profit has been recorded during a month that is generally considered as a lean time in the aviation industry.

The airline reported an operating revenue of Rs 494.45 crore during July this year compared to Rs 421.75 crore recorded during the same period in the previous year. It recorded a total revenue of Rs 494.90 crore in July (Rs 422.3 crore). The airline carried more than 6-lakh passengers in July (5.5 lakh).

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