Air India Express has reported a loss for the first time in seven years in spite of the rise in passenger traffic by 56% since the pandemic. The airline charts showed a net loss of US$7.23 million in the financial year 2022 while reporting a profit of US$9.82 million in the financial year 2021.
The second and the third wave of the pandemic hit the regional international market and hampered market recovery, the airline said. Air India Express mostly operates flights between India and Gulf nations. Currently, there are 24 737s in Air India Express fleet.
"The airline, as such, continued with its business continuity measures, by shifting capacity in alignment with demand patterns, keeping a close watch on route profitability, continuing with cutbacks in employee salaries, and focusing on cargo," the airline said.
According to Air India Express, these measures allowed the company to contain its net loss in FY22. During FY21, its parent company Air India, which has been losing money for many years, reported a net loss of $ 9.5million.
Air India Express reported a 58% rise in cargo revenue in FY22, taking the net revenue to US$2.09 million against US$1.32 million in FY21. The airline said: "The quantum increase in cargo this fiscal year is attributed primarily to the 300 plus cargo-in-cabin flights (P2C) that were operated during the lockdown period with each flight carrying a cargo payload of approximately 15 tonnes.”
Air India and Air India Express were taken over by the TATA Group in a privatisation bid on January 27, 2022. As per the sources, Tata Group is planning to bring all four airlines under one umbrella for operational efficiency, but no solid plans are on the cards so far.