Saturday, September 7, 2024 Air India slashes net losses to ₹4,444 crore in its first year under Tata Group, marking a significant recovery from last year’s ₹11,388 crore loss. In its inaugural full fiscal year under the Tata Group’s ownership, Air India significantly reduced its net losses to ₹4,444 crore, representing a dramatic decrease from the ₹11,388 crore loss reported in FY2023. Standalone revenue saw a robust increase of 24%, climbing to ₹38,812 crore from ₹31,377 crore in FY2023.
Air India also achieved its highest consolidated annual operating revenue, totaling ₹51,365 crore—up 25% year-over-year—thanks to an expansion in capacity to 105,059 million available seat kilometers (ASKM). The Air India group, which now includes Vistara and the recently merged Air India Express (formerly AIX Connect), transported 40.45 million passengers during FY24.
The airline operated approximately 800 daily flights to 55 domestic and 44 international destinations. In a strategic financial move, Air India’s board of directors issued and allotted 7.12% preference shares at ₹10 each, raising ₹3,800 crore in a private placement to Tata Sons in March 2024.
Vistara also demonstrated financial improvement by reducing its net loss to ₹581 crore from ₹1,393 crore in FY2023. Conversely, Air India Express, Tata Group’s low-cost carrier, reported a loss of ₹163 crore, a stark contrast to the ₹117 crore profit posted in FY23. AIX Connect, previously known as AirAsia India and jointly owned by Tata Sons and AirAsia, substantially cut its losses to ₹1,149 crore from ₹2,750 crore in FY23.
Recently, the Tata Group received Foreign Direct Investment (FDI) approval for the merger between Vistara and Air India. Following this approval and a ₹2,059 crore investment from Singapore Airlines, Vistara is set to cease operations on November 11, 2024..
