The Hindu : IA hopes to cut losses

Online edition of India's National Newspaper
Friday, Mar 26, 2004

Business

Business

IA hopes to cut losses

By Our Special Correspondent

NEW DELHI, MARCH 25. Indian Airlines is poised to end 2003-04 with a net loss of Rs. 41.25 crores, substantially lower than the loss of Rs. 196.56 crores incurred by the State-owned carrier in 2002-03. The airline is expected to end 2003-04 with an operating profit of Rs. 15.25 crores, according to the revised revenue and expenditure estimates approved by the IA board here. IA has been incurring losses during the last three years primarily on account of massive hike in the price of aviation turbine fuel (ATF) since March 2000 and the aftermath of events such as 9/11, outbreak of SARS and Iraq war.

The year 2004-05 is expected to be better than the 2003-04 fiscal due to improvement in traffic and general health of the economy coupled with anticipated increase in capacity and improved utilisation thereof. Budget estimates for 2004-05 indicate an operating profit of Rs. 16.50 crores. The final outcome of these projections, will, however, depend a lot on the price of ATF.

Indian Airlines, in the current summer schedule, has already increased its frequency of Airbus A-320 flights between Delhi and Mumbai from 10 to 11 a day and between Mumbai and Bangalore from four to five daily.

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