Air India Express, the low-cost airline of the Tata group’s Air India, has posted a net loss of INR 163 crore in 2023-24 (FY24) as against a profit of INR 117 crore it rang up just a year earlier.
This nosedive stands out as it is only the second time in the past nine years that the airline has found itself in the red.
While the firm’s income rose 33 per cent year-on-year (Y-o-Y) to Indian Rs 7,600 crore in FY24, expenditure grew 38.3 percent to Rs 7,763 crore in the same period, according to documents submitted to the Registrar of Companies and reviewed by Business Standard.
According to sources, the primary reason for the loss in FY24 was its substantial expansion, particularly in the domestic market, bringing it into competition with market leader IndiGo on various routes. – business-standard.com
This led Air India Express to align its fares with IndiGo’s lower pricing on those routes, affecting profitability. Additionally, aircraft maintenance and the hiring of new employees increased expenses.
Before the Tata group took over Air India and Air India Express in January 2022, more than 90% of Air India Express’s flights were on international routes.
