Crisis hit state-owned carrier Air India on Wednesday said its net loss for the quarter ended December 31, 2009, declined by 9.7% to Rs 1,473.85 crore against Rs 1,632.23 registered during the corresponding period in the previous year. This, the airline said, was “as a consequence of higher passenger carriage and improved load factor”. The airline’s operating loss for the quarter also saw a dip by 25% from Rs 1,152.44 crore in October-December 2008 to Rs 864.33 crore in December 2009 quarter.
During the quarter, the airlines’ revenue rose from Rs 3,738.59 crore to Rs 3,852.14 crore, up 3%. This modest increase in revenues was in view of low yields on both the domestic and international routes due to market conditions, the airline said. The December quarter has been the best for the industry so far with a significant recovery in demand and rates.
Meanwhile, the country’s largest carrier by market share, Jet Airways, reported a net profit of Rs 105.85 crore during the quarter under review against a loss of Rs 249.75 crore in the corresponding quarter last year. Low-cost carrier, SpiceJet, reported a net profit of Rs 108.95 crore for the third quarter against a net loss of Rs 17.96 crore during the year-ago period. However, Kingfisher Airlines posted a 2% rise in net loss to Rs 420 crore for the third quarter, it reduced its operating losses to Rs 77 crore during the quarter ended December 31, 2009, against a loss of Rs 297 crore during the corresponding period last year. During the quarter, Air India registered 24.8% increase in passenger carriage and 14.4% rise in load factor compared to the same period last year.
Meanwhile, the issue of equity infusion into the airline and a review of its turnaround plans are expected to come up for a discussion by a group of ministers headed by finance minister Pranab Mukherjee on February 3.