Air India looking to grow cargo revenue 30%

State-owned Air India, which is reeling under a heavy debt of over US$4.1 billion, expects to post around 30 per cent higher revenue for its cargo segment during fiscal 2014, according to Indian media reports.


Air India looking to grow cargo revenue 30%


State-owned Air India, which is reeling under a heavy debt of over US$4.1 billion, expects to post around 30 per cent higher revenue for its cargo segment during fiscal 2014, according to Indian media reports. During FY12 and FY13, the airline had reported revenues of US$136.6 million and $152.6, respectively, for its cargo business.

However, the national carrier’s overall losses for FY14 would be in the region of$8.3 million, despite a projected 18 per cent jump in revenues to $3.2 million.

Airline officials said that though the company’s bottom line may be in red, its cargo vertical has been doing ‘good business’ in the last few years. The airline carried about 158,220 tonnes of goods during FY 2013 compared with 137,000 tonnes during a year before. During April-December 2013, Air India carried 131,055 tonnes compared with 102,013 tonnes it carried during the same period of the previous year.

“The ratio of international and domestic cargo stands approximately at 70:30. While there is more demand in the international segment, the domestic cargo segment is seeing growth too,” officials said adding, “we are expecting the revenue for our cargo segment to grow at more than 30 per cent, on a year-on-year basis, in the coming years.”