Flying high: Air India makes operating profit in FY25; revenue up 14%
In 2024-25, Air India carried 44 million passengers, registering an annual growth of 9.9 per cent.
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SHIV KUMAR PUSHPAKAR
Aided by lower fuel costs and a surge in passenger numbers, Tata Sons’ promoted full-service global airline Air India (standalone) achieved an operating profit in the last fiscal year (FY25) on a year-on-year basis, sources told businessline.
Besides, sources attributed financial gains from the merger between Air India and Vistara to enhanced efficiency along with higher savings.
However, though the exact value of operating profit was not immediately known, sources revealed that EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent) “landed in the black.”
Sources told businessline that financials for FY25 were declared to the board during a recently held meeting.
At present, the Tata Group-led airline is working on ways to accelerate its financial turnaround via a transformation programme Vihaan.AI.
In 2024-25, Air India carried 44 million passengers, registering an annual growth of 9.9 per cent.
Revenue growth
As per sources, revenue grew by almost 14 per cent to ₹61,000 crore in FY25 on a y-o-y basis. Air India did not respond to businessline’s queries.
“Revenue in FY25 was up by 14 per cent,” sources said.
“Earning an operating profit after several years is an encouraging sign for the airline. The results show that Vihaan.AI transformative programme is working amid stiff competition,” sources added.
During FY24, Air India saw a strong 23.69 per cent increase in turnover, reaching ₹38,812 crore in FY24 from ₹31,377 crore.
Additionally, Air India had recorded its highest consolidated annual operating revenues of ₹51,365 crore in FY24, up 24.5 per cent over FY23.
In May, Air India CMD Campbell Wilson told businessline that the Vihaan.AI programme has passed its halfway mark.
“The key thing left is to upgrade the legacy aircraft, which has been more challenging than it had been initially expected.”
As part of the transformation, Air India has placed an order for 570 new aircraft.
Published on June 6, 2025
