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IA posts Rs 17.75-cr loss in April

Ashwini Phadnis

NEW DELHI, June 19

INDIAN Airlines has reported a net loss of Rs 17.75 crore during April 2001 as against the budgeted net loss of Rs 26.30 crore for the same period.

IA has also been able to curtail its operating losses during April 2001, which stood at Rs 7.35 crore as against a budgeted operating loss of Rs 15.44 crore. During the same period in the previous year, the State-owned domestic carrier had reported an op erating profit of Rs 2.80 crore.

The airlines' operating revenues during April 2001 was higher than what had been budgeted for. While IA had budgeted to earn an operating revenue of Rs 322.56 crore, it achieved an operating revenue of Rs 328.35 crore. Similarly, its operating expenses w ere at Rs 335.70 crore against a budgeted figure of Rs 338 crore during April 2001.

However, on the passenger carriage front, the airline has been able to do better than expected. While IA expected to carry around 5,00,000 passengers during the first month of the current fiscal, it actually carried 5,14,000 passenger. It is interesting to note that during April 2000, IA had carried 4,68,000 passengers.

Sources pointed out that during the month the airline earned more than Rs 262 crore through passenger revenue which was substantially higher than what had been estimated earlier.

Officials have expressed confidence that the overall financial performance of the airline for the year will be better, largely due to increased passenger loads that IA has carried during the past few months.

Commenting on the impact of the flexi-fare module of the airline, sources said while it was too early to comment on its financial impact, there were indications that IA had seen an increase in the number of passengers carried. IA implemented the flexi-fa re module from May 25 which saw the airline offer incentives on certain sectors in order to woo passengers to fly with it.

However, sources felt that a clearer picture on the impact of the new fare module on the bottomline of the company is likely to emerge towards the end of the month when the revenue generation figures are collated.

Related links:
`IA, AI will earn profits next year'
IA net profit at Rs 1.9 cr in Jan

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