Airline Air India has suffered a loss of Rs 246 crore in the first quarter of this financial year. Last year, it was noticed Rs 315.37 crore in the same quarter. The information was given by Minister of State for Civil Aviation Jayant Sinha.
"The target fixed by Air India for operating profit for the first quarter of 2016-17 was Rs 87.28 crore against which the company has posted an operating loss of Rs 246.14 crore in the first quarter of 2016-17," he said.
Sinha said, “The main reason for operating loss was the decline in revenue yields by around six per cent over the budgeted target resulting in decline in passenger revenue".
Apart from budgeted estimates, the company has also faced a loss in cargo revenue.
"The first quarter of the financial year is a lean traffic season for domestic aviation traffic and the same picks up only in the second half of the year during which the company will be aiming at achieving an overall operating profit," Sinha said.
In 2016-17, the company has reported a profit of Rs 1,086 crore. In the last fiscal year, the operating profit of the company noticed Rs 105 crore.
In the last few years, the airline has faced loss due to the several factors including high interest burden and airport user charges, adverse impact of exchange rate due to weakening of the rupee, increase in competition.