Air India says loss narrowed to 5, 550 crore in FY10

Air India says loss narrowed to 5, 550 crore in FY10

Mumbai: State-run Air India reported a net loss of 5550 crore in 2009/10 as the airline was not able to capitalise on higher load factors due to an increase in depreciation and interest charges.

The net loss for FY10, however, narrowed by about 23% from a loss of 7189 crore loss reported in 2008/09, Air India said in an e-mailed statement late on Thursday.

Depreciation rose to 1390 crore in 2009/10 from 1226 crore a year ago. Interest and financing charges increased by 46%, according to the statement.

Air India has current debt of about 19000 crore and is trying to cut costs by fleet and route rationalisation.

The government infused 800 crore into Air India in the last fiscal year and has allocated 1200 crore in its current fiscal budget to help the airline reduce its losses and debt, which have been mounting.

The airline also said passenger revenues increased by 1034 crore in the first half of 2010/11 from a year ago and yields rose 13% in the same period.

Air India chairman Arvind Jadhav had said earlier this year the airline expects to pare its losses by around 75% this fiscal.