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IA may cut loss by 79% in 2003-04
BS Corporate Bureau in New Delhi |
March 25, 2004 08:58 IST
Indian Airlines said it expected to cut its loss by about 79 per cent to Rs 41.25 crore (Rs 412.5 million) in 2003-04 from Rs 196.56 crore (Rs 1.96 billion) in 2002-03 on account of seat rationalisation and cheaper fuel.
The airline expects to record an operating profit of Rs 15.25 crore (Rs 152.5 million) 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 board in New Delhi on Wednesday.
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 (Rs 165 million), 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.