Vistara net losses nearly double in FY19 to Rs 831 crore

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Updated: August 16, 2019 4:34:44 AM

Vistara’s operating revenue increased 41% year-on-year to Rs 2,994 crore in 2018-19 as it carried 5.43 million passengers, up 22.6% y-o-y compared with FY18.

During FY19, Vistara’s domestic market share increased to 3.9% from 3.6% in FY18. During FY19, Vistara’s domestic market share increased to 3.9% from 3.6% in FY18.

Net losses at Tata Sons and Singapore Airlines joint venture Vistara nearly doubled to Rs 831 crore in 2018-19 on account of costlier fuel and weaker rupee. The airline had reported a net loss of Rs 419 crore in FY18 while its losses in FY17 stood at Rs 518 crore, according to the data sourced from the Ministry of Corporate Affairs.

Vistara’s operating revenue increased 41% year-on-year to Rs 2,994 crore in 2018-19 as it carried 5.43 million passengers, up 22.6% y-o-y compared with FY18.

Aviation turbine fuel (ATF) costs, on the other hand, jumped 57.6% y-o-y to Rs 1,307 crore, while aircraft lease rents and repair and maintenance costs increased 57.3% y-o-y and 42.5% y-o-y, respectively, during FY19.

These costs are dollar denominated in the airlines business.

While average ATF prices during FY19 were higher 24% y-o-y, the rupee depreciated 8% y-o-y against the US dollar. The competitive pricing of tickets also added to the costs pressure, forcing all carriers to post dismal results in 2018-19. While IndiGo had reported a 93% decline in the net profit to Rs 156 crore during FY19, rival SpiceJet posted a loss of Rs 316 crore.

During FY19, Vistara’s domestic market share increased to 3.9% from 3.6% in FY18. The airline’s capacity, measured in terms of available seat kilometres (ASK), grew 28.3% y-o-y in FY19.

The full-service carrier started international operations earlier this month with flights to Singapore from Delhi and Mumbai. It also plans to launch services to London and Tokyo next year.

Analysts expect Vistara to considerably improve its financial performance in FY20 on the back of international expansion and closure of its full-service rival Jet Airways.

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