Air India expects to post ₹2,636 cr net loss in FY 2015-16

Air India expects to report a net loss of ₹2,636 crore in fiscal 2015-16 down from ₹5,859 crore reported in the previous fiscal.

The airline expects to report a marginal operating profit of ₹8 crore in fiscal 2015-16.

The revised revenue estimates for the year were approved by the airline’s Board at its meeting here recently. The Board also approved estimates for fiscal 2016-17 during which the airline envisages an increase from passenger revenue of about eight per cent at ₹17,000 crore up from ₹15,750 crore in the previous year.

The increase in the number of passengers carried by the airline will mainly be on account of inducting more aircraft into its fleet.

At the meeting, the Board also approved a proposal to reconfigure the 14 Airbus A-320 New Engine Option (NEO) aircraft being leased from a Kuwaiti firm so as to accommodate passengers in business and economy classes. At present, the NEO being leased from the Kuwaiti firm offers seating only in economy class.

“On an average the yield in business class on a one-way sector in the domestic skies is about ₹17,000 compared to about ₹4,500 in economy class,” sources indicated justifying the Board’s decision. The decision to join Star Alliance, a global airline alliance as well as better economic sentiments in India, are also seeing an increase in passengers flying in business class on domestic flights operated by the airline, a senior official said.

During fiscal 2016-17, the airline also plans to induct two Boeing 787 aircraft — one each in November and December this year.

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