Air India, under the ownership of the Tata Group, has experienced a remarkable financial turnaround in its first full fiscal year. The airline’s net losses were slashed to ₹4,444 crore, a dramatic decrease from the ₹11,388 crore loss recorded in the previous fiscal year (FY2023). This positive trend is attributed to a robust increase in standalone revenue, which climbed by 24% to reach ₹38,812 crore, up from ₹31,377 crore in FY2023.
The expansion in capacity, reaching 105,059 million available seat kilometers (ASKM), played a significant role in driving Air India’s highest ever consolidated annual operating revenue, reaching ₹51,365 crore, a 25% increase year-over-year. The airline group, encompassing Vistara and the recently merged Air India Express (formerly AIX Connect), successfully transported over 40.45 million passengers during FY24, operating approximately 800 daily flights to 55 domestic and 44 international destinations.
In a strategic financial move, Air India’s board of directors issued and allocated 7.12% preference shares at ₹10 each, raising ₹3,800 crore through a private placement to Tata Sons in March 2024. This investment further strengthened the airline’s financial position.
Vistara, the full-service carrier owned by Tata Sons and Singapore Airlines, also demonstrated improved financial performance, reducing its net loss to ₹581 crore from ₹1,393 crore in FY2023. However, Air India Express, Tata Group’s low-cost carrier, reported a loss of ₹163 crore, contrasting with the ₹117 crore profit posted in FY23. AIX Connect, previously known as AirAsia India and jointly owned by Tata Sons and AirAsia, significantly reduced its losses to ₹1,149 crore from ₹2,750 crore in FY23.
The Tata Group recently 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. This merger is expected to further enhance the competitiveness of the combined entity in the Indian aviation market.
