Air India Express posts Rs297 crore profit for FY17
Air India Express, has achieved profitability for the second consecutive year. As per the accounts placed and approved by Airline’s Board of Directors (on 28th June, 2017), the Airline has made net profit of Rs.296.7 Cr. in FY 2016-17.
- (1888PressRelease) June 30, 2017 - Air India Express, the low cost arm of Air India, has earned net profit for the second consecutive year. As per the accounts placed and approved by Airline’s Board of Directors (on 28th June, 2017), the Airline has made net profit of Rs.296.7 Cr. in FY 2016-17.
The Airline has been registering operating profit for the last four years, and for the first time earned a net profit in 2015-16. The net profit in 15-16 amounted to 361.68 Cr.
“The net profit earned in 2016-17 is particularly significant as the competition from Indian private carriers increased considerably during the year, added to that was the sluggishness of Gulf Economies where 90% of our capacities are deployed and the large increase in capacity offered by the Airline, we had to strive harder to achieve this success. Obviously, it would not have been possible without the trust placed in us by our valued customers in choosing us over other options,” said Mr.K.Shyam Sundar, CEO, Air India Express.
Despite the adverse market conditions, Air India Express increased its revenues by 14% recording total revenue of Rs. 3335 Cr. Prudent commercial and management interventions including better utilization of its assets gave rise to reduction of about 5-7% in unit costs contributing to the positive financial outcome. Average daily aircraft utilization rose to 12.2 hours from 11.3 hours.
The capacity offered by the Airline went up by 33% even as the airline’s fleet size progressively increased through the year from 17 to 23 aircraft. The year also saw Air India Express expanding its wings to highly competitive markets out of Delhi and Mumbai. The Airline’s pan India footprint was further increased through launch of services from Kolkata and Chandigarh. The airline introduced operations on 11 new routes and increased the frequency / capacity on 13 sectors during the period. Consequently, the number of passengers carried increased by 22% to reach the level of 3.42 million from 2.8 million in 2015-16.
“The credit for this significant achievement should go to each and every employee of Air India Express who contributed through their commitment, hard work and team spirit. The support received from Chairman / CMD Air India, the Board Members of Air India Express and the top executives in the parent company and its subsidiaries were also critical this” added Mr. K Shyam Sundar, CEO, Air India Express.
During the year, the airline has introduced online meal booking facility and launched mobile application . On the Air Safety front, the Airline achieved the prestigious IOSA (International Operational Safety Audit) registration following an internationally recognized audit carried out by IATA.
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