For the first time since 2007, Air India has reported a profit of 105 cr Operating Profit in the last fiscal aided by the lower fuel costs and rise in passenger numbers.
Air India which has a loss of Rs 2,636 crore in 2014-15, is working ways to improve its financials.
This is the first time since 2007 that the state-owned airline has made a profit.In the current financial year, Air India is projecting that this figure will jump to Rs 700-800 crore.
In 2015-16, Air India carried 18 million passengers, registering a growth of 6.6 per cent. In the comparable period, the same stood at 16.88 million.The benefits of lower fuel costs were passed on to passengers, according to the sources.
A decline in fuel costs in the last financial year was also an important factor.
The Prime Minister had made a reference of this during his Independence day address. “Today I can say with complete satisfaction that Air India, which used to be notoriously known for incurring losses, has improved its operations leading it to log operational profits “,he said.