India's national carrier Indian Airlines Friday reported a net profit of Rs.440 million ($9 million) for fiscal 2003-04 after running up losses during the three preceding years.
The results were announced after a meeting here of the airline's board of directors, which approved the annual accounts for fiscal 2003-04.
"There was significant improvement in the operating performance as a result of which the company earned an operating profit of Rs.1.25 billion compared to the operating loss of Rs.1.34 billion last year," the airline said in a statement.
Thanks to factors like cost control, improved physical performance and increased aircraft utilisation, Indian Airlines earned operating revenue of Rs.46 billion, up 13.4 percent from the previous year's Rs.41 billion.
The profit came despite a 6.81-percent increase in operating expenses, from about Rs.42 billion in the previous fiscal to a little over Rs.45 billion in 2003-04, mainly due to the surge in fuel prices, the statement said.
Aviation turbine fuel (ATF), which accounts for 36 percent of the cost of domestic operations, was priced at an average of Rs.310 billion a kilolitre, against the international price of Rs.291 billion a kilolitre, it said.
The various cost control and economy measures introduced by Indian Airlines during 2003-04 resulted in savings of Rs.1.9 billion.
Such savings were attributed to savings from reduction in overtime and staff, as well as discontinuance of ex-gratia payments to officers.
--Indo-Asian News Service