Air India trims FY24 losses to Rs 7,000 crore

The fiscal year 2023 was the first full financial year when the airline functioned under the Tata Group, which acquired it in January 2022. (Image: Air India/Twitter)

Tata Group-owned, Air India is likely to narrow its losses in FY24 to around Rs 7,000 crore against Rs 11,381 crore in FY23. When contacted, Air India did not comment on its FY24 financial performance.

According to sources, healthy growth in passenger traffic boosted revenues during the year, while cost-saving measures such as automation lowered the expenses.

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The fiscal year 2023 was the first full financial year when the airline functioned under the Tata Group, which acquired it in January 2022. The FY23 losses at Rs 11,381 crore was 18.6% higher than the previous fiscal, when the losses stood at Rs 9,591 crore after accounting for write-offs and exceptional items.

The revenues from operations doubled to Rs 31,377 crore in FY23 from Rs 16,763 crore in FY22.

Air India’s CEO, Campbell Wilson, in a message to its employees last week, said, “Like all airlines, we have enjoyed good tailwinds with healthy demand and yields since Covid abated, and our topline performance has been very creditable across all revenue segments”.

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Tata Group acquired Air India in January 2022 with a winning bid of Rs 18,000 crore, surpassing the Rs 12,906 crore reserve price. The airline’s significant debt of Rs 61,562 crore as of August 31, 2021, was divided, with Tata taking Rs 15,300 crore, and the remainder transferred to AI Asset Holding, amounting to around Rs 46,000 crore.