Air India expects to post a profit of Rs 300 crore this fiscal

Mumbai: Air India expects to post a higher operating profit of Rs 300 crore in the current financial year as the national airline continues with efforts to revive its fortunes amid stiff competition.

The state-owned carrier, which is surviving on a Rs 30,000 crore bailout package, had recorded an operating profit of Rs 105 crore in the last financial year ended March 2016. This was the first time in a decade that the airline remained operationally profitable.

A senior official said Air India's board at its meeting here today discussed and approved the carrier's Budget for the next financial year.

Going by current estimates, Air India is expected to post an operating profit of Rs 300 crore in the current fiscal and a higher amount of Rs 530 crore in 2017-18, the official said.

The expected operating profit of Rs 300 crore this fiscal ending March 2017 would be more than double than registered in the previous financial year. Despite a debt of Rs 46,570 crore, including Rs 15,900 crore on account of aircraft acquisition, Air India managed to report an operating profit in 2015-16.

In the Union Budget 2017-18, the airline has been allocated Rs 1,800 crore as part of the Rs 30,231 crore financial bailout package. Meanwhile, the board today gave its in-principle approval for leasing five wide-body and ten narrow-body planes. Air India is looking to expand its capacity for domestic as well as international services.