Air India has posted a net loss of 56 billion rupees ($1.2 billion) for the fiscal year ending 31 March 2009 after it was hit by the economic downturn and higher fuel prices.
This is double the 22 billion rupees ($474 million) loss it posted a year ago.
The airline carried 10.4 million passengers in the 2008/09 fiscal year, down from 13.21 million passengers in the 2007/08 fiscal year, says the airline.
The passenger load factor fell 4.3 percentage points to 59.5% from 63.8% a year ago, adds the carrier.
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Factors such as the increase in depreciation costs due to new aircraft, and an increase in interest on aircraft loans have contributed to the losses, says Air India.
The carrier has cut unprofitable routes and put up aircraft for lease. It is offering three Boeing 777-200LRs and four Airbus 310-300Fs on dry-lease and three 747-400s on wet-lease.
Air India has also hired management consultancy Booz Allen Hamilton to study ways to cut costs.
"These measures with the pick up in demand in the domestic and international traffic are likely to result in improvement in the operating performance for the year 2009-10," says the carrier.
Source: Air Transport Intelligence news
