 "AirAsia India narrows down loss to Rs 33 crore")
The losses of AirAsia India narrowed to Rs 32.7 crore in the December quarter, 23 per cent less than Rs 35.2 crore in the same period a year ago.
Revenue doubled to Rs 208 crore from Rs 62 crore in the same quarter last year, as the airline doubled its fleet to six aircraft.
AirAsia was unable to derive substantial benefits of lower fuel costs. On an operating level, the airline posted a loss of Rs 25.6 crore, against Rs 33.1 crore in same quarter a year ago.
During the quarter, all three listed airlines, IndiGo, Jet Airways and SpiceJet, made strong profits. IndiGo and SpiceJet made profits of about Rs 657 crore and Rs 238 crore, respectively, and Jet Airways posted a record profit of Rs 467 crore. AirAsia commenced operations in June 2015 and has six Airbus A320 aircraft. The promoters, including AirAsia Malaysia, Tata Sons and Telestra Tradeplace, have invested $30 million in the venture and are looking at a second round of funding as losses have eroded its equity capital. Tension between the promoters and senior management has been another concern for the airline.
In December, AirAsia had a market share of two per cent. While its unit costs declined 44 per cent because of low fuel costs, its unit revenue (revenue earned from a seat per km) declined seven per cent as sector fares overall came down. The airline’s load factor grew a percentage point to 81 per cent, year on year.
“Our operations in India are geared to grow further. The load factor improved to 84 per cent amid heightened competition while total passengers carried increased 134 per cent to 0.51 million,” AirAsia Group Chief Executive Officer Tony Fernandes said in a statement.
The airline’s management had earlier in the year expressed optimism the carrier was close to breaking even, but it has been unable to report a profit yet.
The number of passengers carried increased 134 per cent due to increase in capacity. Ancillary income per passenger was at Rs 492 while the seat load factor was 84 per cent.
