Air India cuts net loss by 23 per cent

National carrier Air India (AI) has reduced its net loss by 23 per cent from Rs7,189 crore in the previous year to Rs5,551 crore in 2009-10.

As per audited financial results for the year 2009-10, approved by the Air India board yesterday, the state run carrier reported an operating loss of Rs3,472 crore, which was down by 39 per cent as against the last fiscal when the figure stood at Rs5,672 crore.

EBITDA (earnings before interest, taxes, depreciation and amortisation) was up Rs2,417 crore and the airline in a statement said its passenger load factor improved from 59.5 per cent in 2008-09 to 64.8 per cent in 2009-10 - an increase of 9 per cent.

'Operating loss decreased by 39 per cent from Rs5,672 crore in 2008-09 to Rs.3,472 crore in 2009-10,' said the airline in the statement.

According to the airline, the results were muted due to increase in depreciation by Rs164 crore, from Rs1,226 crore last year to Rs 1,390 crore this year and an increase in interest and financing charges by Rs769 crore due to addition to its aircraft fleet, increase in working capital borrowings and interest rates.

The board was apprised in the first half of 2010-11, of the company's improved performance which saw the passenger revenue, load factors and cargo revenue rise substantially.