Tata Group’s airline business cuts losses to Rs6,337cr in fiscal year 24

MUMBAI: Tata Group’s airline business, despite facing challenging conditions, significantly reduced its losses to Rs6,337 crore in FY24, down from Rs15,414 crore the previous year, as per Tata Sons’ FY24 annual report.

However, net losses increased to Rs2,223 crore from Rs1,723 crore, even though the digital and electronics division reported a 148 per cent jump in revenue to Rs1,612 crore.

The group operates airlines such as Air India, Air India Express, Tata SIA Airlines (Vistara), and AIX Connect (formerly AirAsia India).

Air India, which the Tata Group acquired in 2022, recorded its highest-ever consolidated revenue of Rs51,365 crore in FY24, marking a 24 per cent increase over the previous year.

This growth was driven by a capacity expansion to 105 billion available seat kilometers (ASKM) and an improved passenger load factor of 85 per cent.

IndiGo

Despite this progress, Air India trailed behind InterGlobe Aviation, the operator of IndiGo, India’s largest airline by fleet size and passenger numbers. IndiGo reported Rs68,904 crore in revenue and a net profit of Rs8,167 crore in FY24.

A domestic investment fund executive quoted in the report remarked, “The Tata Group is deeply invested in future-oriented sectors like aviation and e-commerce, which, while challenging, are vital for national development. The group’s leadership is well-positioned to steer through these challenges.”

On a standalone basis, Air India reduced its losses to Rs4,444 crore in FY24 from Rs11,388 crore in FY23, alongside a 23 per cent rise in turnover to Rs38,812 crore.

Tata SIA Airlines, which operates Vistara, saw a 29 per cent increase in turnover to Rs15,191 crore while reducing its losses to Rs581 crore from Rs1,394 crore the previous year.

Tata Sons’ profit

The report also noted that Tata Digital had 20.76 million transacting customers in FY24, generating a gross merchandise value (GMV) of Rs37,355 crore.

Tata Sons’ net profit surged by 57 per cent to Rs34,654 crore, while revenue grew by 25 per cent to Rs43,893 crore. Additionally, Tata Sons distributed a record-high dividend of Rs35,000 per share.

Tata Sons Chairman N. Chandrasekaran’s compensation for FY24 was Rs135 crore, reflecting a 20 per cent increase from Rs113 crore in FY23. This included a salary of Rs12.43 crore and a commission of Rs121.50 crore, according to the report.