Air Asia India, the Tata Sons-Air Asia Berhad JV, reduced its net losses by 13.65% y-o-y to Rs40.49 crore during the January-March quarter of 2017 on the back of forex gains. The low- cost airline had reported a net loss of Rs46.89 crore in the corresponding period last year. AirAsia follows a January-December financial year.
Barring the foreign exchange gains the operating losses widened due to increase in fuel and staff cost. During the quarter, the airline made a foreign exchange gain of Rs11.92 crore compared to just Rs3.07 crore in the corresponding quarter.
As a result of the increase in passenger flown and the additional services provided by the airline the total revenue for the quarter increased by a whopping 47.25 % y-o-y to Rs282.10 crore.
While the ancillary revenue per passenger decreased to Rs418 during the period compared to Rs502 in the year ago period. The fuel cost – almost 40% of the total operating cost – increased by 26% y-o-y to Rs111.89 crore while the staff cost increased by 54.82% y-o-y to Rs64.59 crore during the quarter.
The average fare during the quarter decreased by 6.6% y-o-y to Rs2,983 due to steep discounting by other competitors in the domestic market. The subsidiary of Air Asia Berhad increased its total capacity by 30% y-o-y to 1012 million average seat kilometres (ASK) during the period and the passenger load factor also increased by 3 percentage points to 89% in the domestic market.