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Air India Express posts 35% decline in net profit for FY2018-19

The company earned a net profit of Rs 169 crore in FY 2018-19 compared with Rs 262 crore in the previous year.

ET Bureau|
Jul 30, 2019, 07.53 PM IST
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Kochi: Air India Express, the low cost arm of Air India, reported a 16 per cent rise in revenue for FY 2018-19 at Rs 4,202 crore, however, the net profit fell 35 per cent on a year-on-year basis (YoY).

The airline's revenue for FY 2017-2018 stood at Rs 3620 crore. The company earned a net profit of Rs 169 crore in FY 2018-19 compared with Rs 262 crore in the previous year.

Air India Express CEO K Shyam Sundar blamed high input costs as the reason behind slump in profit. Sundar said, "The aviation sector has had to face many challenges, including high input costs. The unit cost incurred on fuel alone, increased by around 35 per cent during this period. The impact of this on profitability was huge, as more than 40 per cent of the airline’s operating cost were incurred on fuel. Despite this we were able to drive-in profit by greater utilization of our assets and resources, like aircraft, manpower and materials."

The number of passengers carried by the airline increased by 12 per cent, to reach 4.36 million from 3.89 million passengers. The airline’s international carriage alone grew by about 10.5 per cent during this period.

Average daily aircraft utilization rose to 13.3 hours, from the 12.7 hours in the previous year, which in turn led to an increase in capacity offered by the airline. "The fiscal also saw Air India Express inducting two more aircraft on dry lease, which joined the fleet in September and October 2018 respectively," said Sundar.

With the induction of these two aircraft, Air India Express expanded its network to three new Indian cities - Bengaluru, Kannur and Surat. With a fleet of 25 Boeing 737-800 NG aircraft, Air India Express now operates from 13 international and 20 Indian destinations.

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