Air India narrows operating loss to 21.2 billion rupees

NEW DELHI Tue Jul 15, 2014 7:30pm IST

Customers stand at an Air India reservation office at the domestic airport in Mumbai May 8, 2012. REUTERS/Vivek Prakash/Files

Customers stand at an Air India reservation office at the domestic airport in Mumbai May 8, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

NEW DELHI (Reuters) - Air India almost halved its operating loss last year and the state-owned carrier's financial performance is continuing to improve, the government said on Tuesday.

Air India, with a share of around 20 percent of the Indian airline market, made an operating loss of 21.2 billion rupees ($353 million) in the 2013-2014 fiscal year, down from 38 billion rupees a year earlier and 51.4 billion in 2011-2012.

Total post-tax losses at the indebted airline, however, came in at 53.8 billion rupees, down slightly from a year earlier.

India's aviation industry faces high fuel costs, hefty debts and a highly competitive market that has forced fares down. All but one of the country's main carriers are losing money.

Air India "has shown improvement in its financial parameters" since the government agreed a $5.8 billion bailout package for the company in 2012, Minister of State for Civil Aviation, G.M. Siddeswara, told India's parliament.

Siddeswara also said there were no plans to try and privatise Air India, dampening expectations that Prime Minister Narendra Modi's new government would attempt to sell off the carrier, which is dependent on taxpayer cash.

($1 = 60.1200 rupees)

(Reporting by Tommy Wilkes, editing by Louise Heavens)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS EXCLUSIVE

REUTERS SHOWCASE

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

Modi In U.S.

Modi In U.S.

Obama, Modi work to deepen improving U.S.-India ties  Full Article | Full Coverage 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Hopeful of Profit

Hopeful of Profit

GM sees first European profit in 2016 after years of losses  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage