Tuesday, February 8, 2011

AIR INDIA December operating surplus

Air India’s efforts to turn the corner kept pace for the second month in December 2010 when it posted a record operating surplus (cash profit) of Rs 49.48 Crores – as compared to Rs 21.66 crore in November 2010. This continuing trend of making cash profits, for the second consecutive month, in recent times is largely due to a significant improvement in efficiency parameters and adoption of better yield management strategies.

The national carrier continued to strengthen its performance in terms of number of passengers carried, total revenues and better yields. “With the launch of the new state-of-the-art Passenger Service System later this month, we expect a further boost to our efforts to improve our efficiency parameters,” said Mr. Arvind Jadhav, Chairman & Managing Director, Air India.

Air India was positively engaged in drawing its share in the mushrooming aviation business, the company spokesperson said, adding: “Air India’s combined passenger load factor during December 2010 was 70 %.  While the domestic operations recorded a high 79.8 %, the international routes also registered a PLF of 67.1 %.” The spokesperson said this also reflected the passengers’ growing faith in the national carrier.

Another significant pointer of the national carrier’s improving efficiency can be gauged from the fact that 106 out of 179 destinations (flights) made cash profits during the month in review.

Air India’s network passenger revenue during April – December 2010 rose up to Rs. 7941 Crores as compared to the revenue of Rs. 6564 Crores registered during the corresponding period of the previous year, showing a significant growth of 21 %. International & domestic yields improved by 7% and 5% in December 2010 respectively as compared to the previous year.

Out of the total network passenger revenue, Rs. 5008 Crores was recorded on international services, as compared to Rs.4380 Crores in the previous year, registering a growth of 14.3 per cent.  Air India’s growth in passenger revenue on the domestic services during April – December 2010 was recorded at 34.3 per cent – up from Rs. 2184 Crores (in April – December 2009) to Rs. 2934 Crores.

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