Air India posts healthy growth revenue
Riding on high yields and an increased passenger load factor, state-owned Air India posted a healthy 46% revenue growth last month over the same period last year, airline sources said today.india Updated: Apr 18, 2012 14:32 IST
Riding on high yields and an increased passenger load factor, state-owned Air India posted a healthy 46% revenue growth last month over the same period last year, airline sources said on Wednesday.
"The yields on domestic sector had significant improvement of 38.5% in March vis-a-vis last year. The seat factor during this period also increased nearly 7.9%. Consequently, the airline posted a healthy growth in revenue of 46.1%," the sources told PTI.
On international routes too, the airline put up a good performance, clocking a nearly 33% growth in passenger revenue. The higher growth came on the back of an eight% jump in load factor and higher yields at 28%.
"For the quarter ending March this year, the passenger revenue showed an improvement of 36.1%, besides a 15.7 and 23% rise in seat factor and yields respectively over the same period last year," the sources said.
On a cumulative basis, the revenue for fiscal 2012 posted a growth of 13% with load factor of 5.7%, they said, adding that the yields were up nearly 10%.
The results came a week after the government approved the much-awaited turnaround plan and a financial restructuring plan involving a Rs 30,000-crore equity infusion over the next eight years and a debt recast (CDR) of Rs 21,200 crore.
The financial restructuring plan would provide relief to Air India from its debt servicing obligations on working capital loans in the form of a substantial reduction in interest outlays, while giving it the necessary time to improve its operational efficiency.