AI posts 24% growth in revenue at Rs 830 crore

With rising passenger numbers, Air India has posted 24 per cent growth in revenue at Rs 830 crore during the five-month period this year as against what was achieved during the same period last year.

The state carrier saw a jump of 13.6 per cent in international business, while domestic business grew 14.9 per cent. The international revenue of the airline also went up nearly Rs 545 crore, reflecting a jump of 32 per cent, while domestic revenue rose Rs 290 crore, or 16 per cent.

With the increase in yields and revenues between April and August showing a marked improvements than last year, National Aviation Company of India Ltd (Nacil) – which operates Air India – expects to show positive gross earnings by the end of this financial year.

"The growth looks brilliant and, if it continues, the airline plans to ramp up Rs 2,000 crore worth of additional revenue in 2010-11. With the next batch of equity infusion of Rs 1,200 crore, we expect to become operationally profitable by March next year," a senior Air India official said on condition of anonymity. The airline's passenger occupancy also saw a marked improvement with international loads going up to 67 per cent against 60.7 per cent last year and the domestic load factor increasing 70 per cent from 66 per cent last year.

Officials said a number of initiatives, as part of the restructuring plan, had led to the improved operational performance. This included improved aircraft utilisation. A senior official said there was an increase in number of routes showing profits, which happened because of improved route rationalisation and capacity adjustments.

"Dismantling of the international hub at Frankfurt and making Delhi's T3 terminal its hub was likely to result in an annual benefit of Rs 1,000 crore in 2010-11," the official added.