In the first full year under its new owner, Air India more than halved its net loss during FY24, buoyed by growth in capacity and improved occupancies of its flights.Mumbai Wealth Management

The full-service brought down its net loss to Rs 4,444 crore during the reporting year from Rs 11,388 crore in FY23, as per disclosures made in the annual report of on Friday. The carrier was acquired by the in January 2022.

The standalone revenue for FY24 increased 24% to Rs 38,812 crore from Rs 31,377 crore in FY23. Its consolidated revenue improved even better. “Air recorded its highest consolidated annual operating revenues of Rs 51,365 crore, up 25% driven by growth in capacity to 105,059 million ASKM (available seat kilometers), up 21% and improvement in passenger load factor to 85% (from 82%),” a note in Tata Sons said.

The Air India group, which includes Vistara and Air India Express (merged with AIX Connect), carried 40.45 million passengers during FY24, operating about 800 daily flights to 55 domestic and 44 international destinations.

In March 2024, the board of directors of Air India issued and allotted 7.12% preference shares – II of Rs 10 each through preferential allotment on a private placement basis , aggregating Rs 3,800 crore for cash to Tata Sons.Agra Stock

Tata SIA Airlines, the joint venture between Tata Sons and Singapore Airlines which runs India’s second and only other full-service carrier Vistara, also trimmed its losses during FY24.

Tata SIA’s net loss during the reporting year fell to Rs 581 crore from Rs 1,393 crore in FY23. Air India Express, the company’s low-cost airline, slipped into the red, posting Rs 163 crore loss as compared to Rs 117 crore profit posted in FY23.

AIX Connect (formerly AirAsia India) also cut down its losses substantially. The airline, which was once jointly owned by Tata Sons with AirAsia, posted a net loss of Rs 1,149 crore as compared to Rs 2,750 crore loss posted in FY23.

In August, the Indian government gave a green signal to the foreign direct investment for the proposed merger between Vistara and Air India. Vistara will cease operations on November 11 following the FDI approval for investment of Rs 2,059 crore by Singapore AirlinesKolkata Investment. The integration of Vistara into Air India marks a significant strategic consolidation within the Tata Group’s portfolio.