Air India Express, the low cost arm of Air India, has earned net profit for the third consecutive year. The Airline has made net profit of Rs.262 Cr. in FY 2017-18 as per the accounts placed and approved by Airline’s Board of Directors. The Airline has been registering operating profit for the last five years, and for the first time earned a net profit in 2015-16.
“The net profit earned in 2017-18 is particularly significant as the aviation sector had to face many challenges including high input costs, added to that was the sluggishness of Gulf Economies where 90% of our capacities are deployed .The unit costs have increased over the past 12 months due to steady increase in global fuel rates. The average cost of fuel in March 2018 was about 20% more compared to what it was in March 2017.Obviously, this success would not have been possible without the trust placed on us by our valued customers in choosing us over other options,” said Mr. K. Shyam Sundar, CEO, Air India Express.
Despite the adverse market conditions, Air India Express increased its revenues by 8.7% recording total revenue of Rs. 3648 Cr. Prudent commercial and management interventions including better utilisation of its assets contributed to the positive financial outcome. Average daily aircraft utilisation rose to 12.7 hours from 12.2 hours in the previous year. The number of passengers carried by the Airline increased by 13.7 % to reach the level of 3.89 million from 3.42 million in 2016-17.
The year also saw Air India Express expanding its wings to markets out of Madurai, Coimbatore and Vijayawada. With a fleet size comprising 24 Boeing 737 – 800 NG aircraft, the Airline flies to 13 International and 18 Indian destinations, offering value-for-money services to customers in tier II and tier III Indian cities.
“The credit for this significant achievement should go to each and every employee of Air India Express who contributed through their commitment, hard work and team spirit. The support received from Chairman / CMD Air India, the Board Members of Air India Express and the top executives in the parent company and its subsidiaries was also critical to this” added Mr. K Shyam Sundar, CEO, Air India Express.