IA may cut loss by 79% in 2003-04

Seat rationalisation and cheap fuel help cut losses.

Indian Airlines said it expected to cut its loss by about 79 per cent to Rs 41.25 crore in 2003-04 from Rs 196.56 crore in 2002-03 on account of seat rationalisation and cheaper fuel.

The airline expects to record an operating profit of Rs 15.25 crore in 2003-04, a company release says. This is based on revised revenue and expenditure estimates for 2003-04, which were approved by the airline's broad here yesterday.

Aviation fuel prices have fallen to Rs 21,500 a kilolitre now from a peak of Rs 25,200 in March 2003.

Indian Airlines hopes to end 2004-05 with an operating profit of Rs 16.50 crore, on the back of a healthier economy and an upturn in air travel. The state-owned airline plans to increase capacity and improve seat utilisation.

The state-owned airline has been incurring losses in the last three years, mainly because of dearer aviation fuel and the decline in global air travel after the September 11, 2002, terrorist attacks in the US.