Air India likely to end fiscal with Rs 65 crore
"We are expecting to end the fiscal with a positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of Rs 65 crore. This will come on the back of better yield, increased passenger revenue and seat factor," a source in Air India said.
Though the increase will be a marginal one, they said it would be a big boost as the airline was Rs 2,238 crore EBITDA negative in 2011-12. According to official figures, the ailing national carrier turned EBITDA positive to the tune of Rs 48.75 crore between April and December last year.
In the first nine months of the current fiscal, Air India earned an operating revenue of Rs 11,400.44 crore while its operating expenses were Rs 13,954.47 crore, resulting in an operating loss of Rs 2,554.02 crore, the figures showed. Since the merger of erstwhile Air India and Indian Airlines in 2007, Air India has not posted profit even once.
The Economic Survey, presented in the Parliament last month, had expressed optimism about the debt-ridden carrier's recovery saying that the company would turn EBITDA positive in the current financial year.
The Survey also took cognisance of the improved performance of Air India in the ongoing financial year. Besides, Air India is also likely to clock a higher number of passengers this year at