Air India Likely To Log Consolidated Profit In Current Financial Year: Report

Along with Air India, its subsidiary Air India Express is also likely to report a consolidated profit

Last week, Air India's CEO Campbell Wilson said that the company's progress has been "nothing short of stunning" in the past year.

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Tata Group-owned Air India is likely to log a consolidated profit this year (FY23), making a turnaround from a standalone loss of Rs 7,000 crore in FY22, according to report by The Economic Times (ET). Along with Air India, its subsidiary Air India Express is also likely to report a consolidated profit.

The ET report said that higher demand in international routes and better management of cost may result in profits for the company, which is also expected to post the first positive earnings before interest, tax, depreciation and amortisation (Ebitda) in FY23.

A source privy to the development told ET, "Revenue performance for the airline has improved significantly. While before privatisation Air India was earning Rs 70 crore per day, it earns Rs 100 per day now even with a lower capacity."

This would also mean that the Tata Group will be able to make the airline, which was ailing for a long time, profitable in just one year since its takeover on January 27, 2022.

Last week, Air India's CEO Campbell Wilson said that the company's progress has been "nothing short of stunning" in the past year. Campbell also said that while working on improvements, the airline has not shied away from other ambitious actions such as merging Air India Express with Air Asia, Vistara with Air India, or kicking off the establishment of a new InfoTech Centre, or an aviation academy.

"And that's not to mention our much talked-about short- and-medium term fleet expansion," he said in a communication to the employees. "Taken together, the progress over the last 12 months has been nothing short of stunning, even if so much of what we have been working on has been behind the scenes, building platforms and capabilities so that our future ambitions can take flight," Campbell said, while adding, “There is of course much more that needs to be done, and everyone internally and externally - is hungry for us to do it.”

Meanwhile, Air India on Friday said the airline would finally seal half of an order worth billions of dollars for some 495 jets with Boeing and engine suppliers General Electric and CFM International. Tata Group seeks to revive the airline and compete with much larger rivals, according to the Reuters report.