India’s national carrier has continued to improve its financial performance, reducing operational losses by 70 per cent to Rs 161 crore for the first nine months of the current fiscal year, aided by higher ancillary revenues and higher contribution from subsidiaries.
The airline reported a 10.6 per cent increase in operating revenues at Rs 15,828 crore, according to its unaudited numbers. Its expenses increased 7.6 per cent to Rs 15,990 crore.
“The increase in revenues on the back of higher cargo and excess baggage earnings and increased contribution from subsidiaries helped Air India reduce losses by over 70 per cent during the first nine months of the current fiscal,” a senior Air India executive was quoted as saying in a report.
The airline has a target of Rs 1,000 crore in operating profit in the current fiscal. Air India had reported an operating profit of Rs 105 crore in FY16.