AirAsia India posts Rs 44 crore loss

AirAsia India posted a net loss of Rs 44 crore in the June quarter despite a sharp reduction in jet fuel prices. In the same quarter last year (it began operations last June), the airline made a loss of Rs 69 lakh.

AirAsia India posted a revenue of Rs 115 crore in the quarter under review. In a statement, group chief executive officer (CEO) Tony Fernandes said, “We are small but are a popular airline in India and are growing fast. Loads are consistently high and in the second quarter, the airline recorded a load factor of 83 per cent.” The airline flew over three lakh passengers in the quarter.

Initially, the airline had planned to induct an aircraft every month, considering the potential of the low-cost carrier model in India. However, in about a year, it has added only five aircraft to its fleet. It plans to add three or four more by the end of this year.

The airline hasn’t been able to break-even so far; it posted a net loss of Rs 19 crore for the March quarter. For the previous quarter, the net loss stood at Rs 21 crore. In an interview in May this year, CEO Mittu Chandilya, who was given the added responsibility of managing director on Thursday, told this newspaper that the airline “is very close to breaking even”.

Recently, AirAsia India chose Delhi as its hub in north India. It has decided against launching operations from Mumbai, as it is focusing on tier-II cities.