Air India is likely to enjoy acche din, as its low-cost international subsidiary Air India Express has turned the corner by reporting net profits for the first time since it started operations in April 2005.
The airline reported a profit of Rs 362 crore during the 2015-16 fiscal, helped by lower fuel prices and improved revenues over the past year on the back of flying more people per flight. The airline had incurred losses of Rs 62 crore during the 2014-15 fiscal.
Profits of AI express has come during the fiscal, when its parent Air India is also expected to make operational profit. The airline also found a mention in Prime Minister Narendra Modi’s Independence Day speech, where he complimented the national carrier for improved financial performance.
The airline’s board approved the audited financial results on Wednesday. K Shyam Sundar, chief executive officer of Air India Charters Ltd, the subsidiary that operates Air India Express, told ET that the turnaround could be achieved on the back of improved operations. Bobby Hull JerseyShare This