National carrier Air India (AI) has cut down its net loss by 23% to Rs 5,551 crore in 2009-10 from Rs 7,189 crore the previous year.
As per audited financial results for the year 2009-10, approved by the Air India board here on Thursday, the state carrier suffered an operating loss of Rs 3,472 crore, down by 39% as compared to the last fiscal when the figure stood at Rs 5,672 crore.
EBITDA (earnings before interest, taxes, depreciation and amortisation) improved by Rs 2,417 crore. AI in a statement said its passenger load factor improved from 59.5 % in 2008-09 to 64.8% in 2009-10 - an increase of 9%.
It said the results were muted due to increase in depreciation by Rs 164 crore, from Rs 1,226 crore last year to Rs 1,390 crore this year and an increase in interest and financing charges by
Rs 769 crore due to induction of more aircraft, increase in working capital borrowings and interest rates.
The board was apprised of the company's improved performance in the first half of 2010-11 wherein the passenger revenue, load factors and cargo revenue had risen substantially.
The board also approved the sale of four A310 freighter aircraft, which are nearly 20 years old.