AI Express flies to `297 cr profit in FY17
Flying in the black for the second year straight, Air India Express on Wednesday reported net profit of Rs 296.7 crore for 2016-17, helped primarily by higher revenues and reduced costs.
The low cost arm of state-owned Air India however saw its net profit fall from Rs 361.68 crore in financial year ended March 2016.
Air India Express' remaining profitable assumes significance amid the government looking at various options, including possible privatisation, to revive debt-laden Air India. The results were approved by the airline's board during the meeting held here today. "The net profit earned in 2016-17 is particularly significant as the competition from Indian private carriers increased considerably during the year," Air India Express CEO K Shyam Sundar told PTI.
"There was also the sluggishness of Gulf economies where 90 per cent of our capacities are deployed and the large increase in capacity offered by the airline, we had to strive harder to achieve this success," he said. The airline saw its revenue rise 14 per cent to Rs 3,335 crore. It has been registering operating profit for the last four years.
"Prudent commercial and management interventions including better utilisation of its assets gave rise to reduction of about 5-7 per cent in unit costs contributing to the positive financial outcome. Average daily aircraft utilisation rose to 12.2 hours from 11.3 hours," the airline said.