Air India revenue rises 64% in FY2022, net loss rises by a third to Rs 9,556.5 crore
The airline recorded net revenue of Rs 19,815.9 crore in the year to March 31, 2022, on a stand-alone basis, with a net loss of Rs 9,556.5 crore. In FY21, it reported a net loss of Rs 7,017.4 crore on revenue of Rs 12,104 crore.
The company, which was taken over by the Tata Group in January, said it introduced various measures in the 2022 financial year to minimize the financial impact in these difficult times and partially mitigate the impact of the pandemic. These measures include salary reductions/benefits at all levels, suspension of all contractual commitments after retirement, introduction of the concept of a shorter working week and encouragement of employees to use their unpaid leave scheme.
“The group also engaged its aircraft lessors in negotiations to obtain reductions in lease payments, exercised strict control over supplier payments to ensure the best possible use of funds,” he said in documents filed with the Registrar of Companies from AltInfo.
There is a gradual improvement in operations, especially on international routes, with a warning of the impact of Covid around the world and the removal of restrictions on movement across the country, Air India said.
However, the company said, wage and severance cuts were slowly being withdrawn and the group hoped for a return to pre-Covid operating levels in the near future.
Air India did not respond to ET’s request for comment. An Air India executive said much of the results reflected performance before Tatas officially took over the airline.
Air India’s new chief executive, Campbell Wilson, who took office on June 16 with a mandate to transform the airline, is creating a new operational structure, laying down systems and processes to ensure efficiency on the ground in addition closely monitor daily losses. Wilson was tasked with creating a customer-centric and service-oriented culture. The Tata Group has already invested Rs 15,000 crore in talent development, training, deployment of IT systems and building a modern fleet in addition to improving ground handling through data analytics. A voluntary retirement plan has also been offered to employees and new key hires are underway to revitalize the airline.
“Air India is a long-term investment option, similar to
and VSNL,” said Mark Martin, founder of aviation consultancy Martin Consulting. “I would give the Tata Group at least 15 years to put the airline on the path to profitability, which is totally doable. Air India will focus on improving revenue.”
During the year, Air India improved its load factor to 73.5%, while the number of passengers carried increased by more than 80% to 11.5 million. In comparison, market leader IndiGo recorded a load factor of 73.6% and carried 50 million passengers.
India’s domestic air traffic grew by almost 67% during the January-June period this year, according to air traffic data released by the Directorate General of Civil Aviation.
“The aggregate market share of the airlines supported by the Tata Group (Air India, Vistara and AirAsia India) stands at 20.6% as of May 22,” said a
report. “The recent acquisition of Air Asia by Air India is likely to provide greater synergies and improve competitiveness in the future. The competitive intensity in the airline industry is expected to intensify with the addition of Akasa Air and,” he added.