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IA net loss for May touches Rs 14 cr

Ashwini Phadnis

K.R. Srivats

NEW DELHI, July 27

THE State-owned domestic carrier, Indian Airlines' (IA) woes on the financial performance front continued in May this year, with a net loss of Rs 14.85 crore during the month. This has taken the cumulative net loss of IA during the first two months for t he current fiscal to Rs 32.60 crore.

This is almost double of the cumulative net loss of Rs 16.15 crore recorded during April-May 2000.

The operating revenue of IA at Rs 346.3 crore during May 2001 was higher than the operating revenue of Rs 328.35 crore recorded during April this year. The cumulative operating revenue for April-May 2001 stood at Rs 674.65 crore as against a budgeted lev el of Rs 681.14 crore. IA had recorded an operating revenue of Rs 615.25 crore in April-May 2000.

The airline, however, posted an operating loss of Rs 4.55 crore during May this year as against a budgeted operating profit of Rs 2.25 crore for the same month. The airline has recorded an operating loss of Rs 11.90 crore during April-May 2001 as against an operating profit of Rs 9.70 crore during the same period in the previous year.

The foreign exchange earnings of the airline during May this year stood at Rs 114.05 crore as against a budgeted Rs 136.24 crore, which is reflective of a decline in the inflow of foreign tourists.

However, the airline has recorded foreign exchange earnings of Rs 234.85 crore during April-May 2001 as against a level of Rs 190.85 crore recorded during April-May 2000. The net foreign exchange earnings during April-May 2001 stood at Rs 8.99 crore.

The total passengers carried by the airline during April-May this year stood at 1.063 million as against a budgeted level of 1.065 million for this period. During the month of May alone, the airline carried around 5,49,000 passengers as against a budgete d 5,64,000 passengers.

The heartening news for the airline is that the yield per passenger during May 2001 at Rs 5,086.52 is slightly higher than the Rs 5,067.73 which IA had budgeted for.

In an attempt to shore up its bottomline and attract more passengers, the airline has already introduced a flexi-fare module. It has also lowered fares on certain key sectors including Mumbai-Chennai, Goa-Mumbai and Mumbai-Bangalore.

Sources felt that a clearer picture on the impact of the new flexi-fare module on the bottomline of the company is likely to emerge in August when more operating revenue statistics are expected to be compiled.

Related links:
IA hopes to end this fiscal with small loss
IA posts Rs 17.75-cr loss in April

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