Air India is no more a loss making company. It has reported operating profit of Rs 105 crore in second quarter!

No longer can Air India be called a loss making company. With tremendous efforts to pull it up, Air India has reported an operating profit of Rs 105 crore in the last fiscal aided by lower fuel costs and rise in passenger numbers.

The state-owned airline, which is working on ways to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15, as per report by agency.

This is the first time since 2007 -- when the erstwhile Indian Airlines was merged with Air India -- that the national carrier has eked out an operating profit.

Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources told the news agency.

Fuel costs going down by 24% and a lot of promotional offers are being credited for the profit.

According to the sources, the benefits of lower fuel costs were passed on to passengers, which are also reflected in terms of lower yield during the last fiscal. Yield -- an indicator of ticket prices -- declined by 7.7 %.

In 2015-16, Air India carried 18 million passengers, registering a growth of 6.6 %. In the comparable period, the same stood at 16.88 million, they added.

However, in 2015-16, the carrier saw its revenue slide to Rs 20,526 crore from Rs 20,613 crore in 2014-15.

Indicating improved operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore last financial year, from Rs 1,436 crore in 2014-15.

Last fiscal, the airline's capacity deployment and aircraft utilisation went up by 4.8 per cent and 7.5 per cent, respectively.

On account of currency fluctuations, the carrier incurred a forex loss Rs 350 crore in 2015-16.
Air India is staying afloat on a Rs 30,000-crore bailout extended by the government.