New Delhi: For the first time in a decade, Air India has made an operating profit of Rs 105 crore in the fiscal year 2015-16.
After the Air India and Indian Airlines merged in 2007, this is the first time the national carrier has eked out an operating profit due to fall in oil prices and also because of increase in the number of domestic travellers.
The state-owned airline had suffered a loss of Rs 2,636 crore in 2014-15.
“Operating profits – Earnings before interest – cost improved in 2015-16 from a loss of Rs 2,636 crore in 2014-15 to a marginal Profit of Rs 105 crores in 15-16,” a senior Air India official said.
The 31% drop in fuel costs is being seen as the main reason for the positive numbers. However, the airline witnessed a growth of 6.6% in the number of passengers who chose Air India services.