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Tata Sia Airlines Limited, which runs the airline Vistara, has reported a net loss of ₹1,612 crore in 2020-21. This is an 11 per cent decrease, compared with the previous financial year. The airline reported a revenue of ₹2,731 crore, a 44 per cent fall since the last financial year.
According to data accessed by business intelligence platform Tofler and reviewed by BusinessLine , the airline’s networth rose to ₹1,566 crore, compared with ₹842 crore the previous year.
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The full-service carrier’s expenses for the fiscal were reported as ₹4,342 crore.
The company, like all other airlines, has faced severe headwinds due to the Covid-19 pandemic.
Vistara informed its stakeholders that “the business has been severely impacted during the year on account of Covid-19. The company witnessed softer revenues due to the lockdown imposed during the first six months of the financial year 2020-2021, and domestic and international flights for significant routes of the company were suspended.”
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It further said that during the second half of FY2020-21, with the unlocking of restrictions, the company resumed its domestic operations, which gradually improved across networks, and there were signs of demand recovery, especially for leisure travel.
“Whilst there has been a second wave of the Covid-19 pandemic in the last month of the financial year 2020-2021, there has also been increased vaccination drive by the Government and the company continues to closely monitor the situation,” it said.
To tide over the pandemic, Vistara raised funds from its parent company and external credit borrowings (ECB) during the past one and a half years.
In August, Vistara received fresh equity of ₹750 crore from its parent companies, Tata Sons and Singapore International Airlines.
In May, Tata SIA Airlines Limited had raised $110 million through ECB.
Tata Sons and Singapore Airlines had infused an additional ₹465 crore.
So far, the two joint venture promoters have infused around ₹4,500 crore in the airline.
Tata Sons recently bought Air India for over ₹18,000 crore.
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