The Hindu Business Line : Air India net falls 82.54 pc

The northward movement in global oil prices has affected the bottomline of Air India. The airline has registered a decline of 82.54 per cent in its net profit at Rs 16.29 crore in 2005-06, mainly on account of an increase of Rs 952 crore in the fuel bill that touched Rs 3,134 crore during 2005-06 from Rs 2,182 crore recorded in the previous year.

The airline had reported a net profit of Rs 93.31 crore during the previous year. "The fuel bill alone contributed more than 33 per cent of the cost of company up from less than 28 per cent during the previous year," official sources told Business Line.

During the year, the airline reported an increase of 25 per cent in its total revenues at Rs 9,677 crore as compared to Rs 7,750 crore recorded in 2004-05. Similarly, there was also an increase of 25 per cent in total expenses at Rs 9,660 crore in 2005-06 against Rs 7,690 crore in the previous year.

Passenger traffic

The airline, however, reported a 10.5 per cent increase in number of passengers carried during the year at 4.86 million up from 4.40 million carried during the previous year. The yield per revenue tonnes kilometres, which is the globally accepted measure of the capacity utilised by an airline, touched 62 cents, up from 58 cents recorded in the previous year.

AI has initiated a number of steps to bring down its oil bill, including increasing the amount of fuel it can hedge to25 per cent from this month. In January this year, the airline board had allowed AI to hedge on 10 per cent of the fuel that it uplifts from abroad. During the eight months that the airline has been hedging on oil, it has managed to save close to $4,00,000, sources indicated.

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