Tata aviation cuts losses by Rs 9,077 cr in FY24, Air India revenue up 24%
The Tata Group’s aviation business, including Air India, Air India Express, Tata SIA Airlines (Vistara), and AIX Connect (formerly AirAsia India), managed to reduce its losses to Rs 6,337 crore from Rs 15,414 crore the previous financial year, as reported in Tata Sons’ FY24 annual report, as mentioned by The Economic Times.
The group’s digital and electronics division saw a substantial growth of 148 per cent, reaching Rs 1,612 crore, although net losses increased to Rs 2,223 crore from Rs 1,723 crore.
Air India, which was privatised in 2022, achieved its highest consolidated revenue of Rs 51,365 crore for FY24, marking a 24 per cent rise from the prior year. This growth was attributed to an increase in capacity to 105 billion available seat km (ASKM) and an enhanced passenger load factor of 85 per cent, the report said.
InterGlobe Aviation, the operator of IndiGo, reported a revenue of Rs 68,904 crore and a net profit of Rs 8,167 crore for FY24.
The report quoted a top domestic investment fund executive as saying, “The group is heavily invested in future-oriented businesses, and while sectors like aviation and e-commerce pose significant challenges, they are crucial for national development. The leadership of the Tata Group is expected to navigate these challenges effectively.”
On a standalone basis, Air India cut its losses to Rs 4,444 crore in FY24 from Rs 11,388 crore in FY23, with a 23 per cent increase in turnover to Rs 38,812 crore. Tata SIA Airlines, operating under the Vistara brand, achieved a 29 per cent rise in turnover to Rs 15,191 crore and reduced its losses to Rs 581 crore from Rs 1,394 crore the previous year, the report stated
The annual report also highlighted that Tata Digital had 20.76 million transacting customers in FY24, generating a total gross merchandise value (GMV) of Rs 37,355 crore.
Previously reported figures indicated that Tata Sons’ net profit surged by 57 per cent to Rs 34,654 crore, while revenue rose by 25 per cent to Rs 43,893 crore. Tata Sons also distributed its highest-ever dividend of Rs 35,000 per share, the report added.
Tata Sons chairman N Chandrasekaran’s compensation for FY24 amounted to Rs 135 crore, up nearly 20 per cent from Rs 113 crore in FY23. This included a salary of Rs 12.43 crore and a commission of Rs 121.50 crore, as detailed in the annual report.
First Published: Sep 07 2024 | 3:03 PM IST