Air India reports 24% jump in revenue in first five months of FY2011
Air India reported a 24% year-on-year growth in revenue to USD187.2 million in the five months ended 30-Aug-2010 on the back of a 32% surge in international revenue and a 16% jump in domestic revenue (Business Standard, 13-Oct-2010). Air India parent, National Aviation Company of India, expects the carrier to report a profit at the operating level as yield and revenue during the first five months of the fiscal year show “marked improvements”. Air India reported 6.3 ppts increase in international load factor to 67% and a 4 ppts increase in domestic load factor to 70% resulting in a 13.6% and 14.9% jump in international and domestic yield, respectively. Earlier this month, Air India stated the carrier expected to return an operating profit for the year ending 31-Mar-2010, boosted by a targeted USD452.5 million increase in revenue and as the carrier’s turnaround programme takes effect. The carrier, which is in the middle of an INR20 billion (USD453 million) government bailout, reported accumulated losses of USD3.2 billion over the past four fiscal years including operating losses of USD1,131 million in FY2009 and USD746.6 in FY2010.
*Based on the conversion rate at USD1 = INR44.34