Crude shaves off 24% of IA’s profit

Hit by a steady rise in oil prices in the international markets last year, Indian Airlines has reported a 24% drop in its net profit for the 2005-06 fiscal.

Its profits dropped despite an over 10% growth in passenger carriage during the fiscal.

Indian reported a net profit of Rs 49.5 crore during the year as against Rs 65.1 crore a year earlier. The airline board approved the annual results on Monday.

“The drop in profits was witnessed despite an over 10% rise in passenger carriage. However, the growth in passenger carriage was not in line with the rise in oil prices and the subsequent rise in operating costs. This resulted a squeeze on margins and a drop in net profit,”a source said.

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