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Business News/ Companies / Company Results/  Vistara turns profitable in Q3, for first time since touching the sky
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Vistara turns profitable in Q3, for first time since touching the sky

The carrier's top-line front is said to have crossed $1 billion, while its bottom-line basket turned profitable. However, the airline did not disclose the figures for profit in Q3.

TATA SIA Airlines is a 51:49 joint venture between Tata Son and Singapore Airlines. (PTI)Premium
TATA SIA Airlines is a 51:49 joint venture between Tata Son and Singapore Airlines. (PTI)

Tata SIA Airlines, a joint venture between Tata Sons and Singapore Airlines, which operates as Vistara recorded profits in December 2022 quarter, for the first ever since it started flying in the skies both domestically and internationally. The carrier's top-line front is said to have crossed $1 billion, while its bottom-line basket turned profitable. However, the airline did not disclose the figures for profit in Q3.

According to a Reuters report, Vistara said its revenue crossed $1 billion and it clocked a net profit, excluding foreign currency loss and non-operating income, in the October-December quarter. The profit numbers were not disclosed.

Notably, this Tata carrier turned profitable at a time when Tata Group is seeking to consolidate its three brands --- Vistara, Air Asia, and former national carrier Air India. The move is to boost its aviation business.

Also, Reuters earlier reported that Tata is also set to place an order for some 495 new planes for Air India as it looks to revamp the airline and merge it with Vistara to create a bigger full-service carrier to take on Middle Eastern rivals like Emirates.

TATA SIA Airlines is a 51:49 joint venture between Tata Son and Singapore Airlines. The brand Vistara commenced its operation on January 9, 2015, with an aim to set new standards in the aviation industry in India and connect destinations across the country and abroad.

Vistara has a fleet of 52 aircraft, including 42 Airbus A320, five Airbus A321neo, two Boeing 737-800NG, and three Boeing 787-9 Dreamliner aircraft, and has flown more than 42 million customers since starting operations.

In 2022, Vistara's international network climbed by over 180%, and its domestic network jumped by over 50%. The airline added new destinations and routes amid a rebound in travel demand post-pandemic.

Last week, Vistara announced the addition of Manohar International Airport (New Goa International Airport, Goa) to its domestic network with daily connectivity to and from Bengaluru along with 6x weekly flights to and from Mumbai, starting 14 February 2023.

As of December 31, 2022, Vistara's market share in the domestic aviation industry is 9.2%, while Air India's share is around 6.2% and low-cost carrier Air Asia's market share is 0.6%.

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Published: 23 Jan 2023, 04:57 PM IST
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