A company release issued on Friday said that the airline had netted a profit of Rs 4.20 crore up to the end of August 1999. While figures for September are yet to be firmed up, the seat factor of about 64 per cent achieved during this month is expected to generate a surplus for September against a budgeted loss. IA expects to make a profit of 6 crore in the first six months of 1999 against a budgeted loss of Rs 2 crore.

The yield per passenger in this period has increased to Rs 4,645 as compared to Rs 4,198 in the previous year.

The achievement is despite a domestic air traffic growth has continued to remain sluggish in the first six months of this year.

As against an anticipated growth in the total domestic passenger market of 5 per cent, based on which, IA budget exercises were carried out, the industry has shown a negative growth of 0.5 per cent.

In view of the sluggish market trends, IA strengthened its efforts to expand the base of the market by introducing a dynamic fare policy regime, said the release.

This, coupled with a sustained marketing and profit upgradation effort, and tailoring of capacity to keep it in line with market demand, has enabled IA to achieve the Rs 6 crore-profit. A review of capacity deployment on a route-wise, daily basis and strictest monitoring and control were able to ensure that even during the lean season occupancy factors did not decline inordinately.

IA also took various steps to control costs; altogether metting a total savings of Rs 11 crore for the company. A saving of Rs 4.6 crore was affected in material consumption while conrol over staff costs resulted in savings of Rs 3.8 crore. Rationalisation of menu and close monitoring of meals resulted in saving another Rs 2.6 crore.