Vistara Airlines has made a profit for the first time since its inception eight years ago. The Indian-based carrier is known for offering onboard service supported by Tata Corporation. Despite this, the airline failed to profit until this quarter. Vistara has emerged from the harshness of the pandemic and is inching closer to merging with Air India.
Vistara Airlines is a joint venture between Tata Corporation and Singapore Airlines, connecting more than 40 destinations across 13 nations with over 260 daily flights. The carrier recently marked its 8th anniversary.
Vistara reported a profitable Q4 of 2022, the first in the airlines operating history. The airline did not reveal any bottom-line numbers aside from mentioning they crossed $1 billion in revenue this financial year.
The financial cycle in India begins on the 1st of April and ends 31st of March of the following year. The airline has one more quarter to get an accurate financial report of the entire year but has remained EBITDA (earnings before interest, tax, depreciation, and amortization) positive. Their current numbers do not consider unrealized foreign currency loss and non-operating income for the quarter. In a statement, Vistara’s CEO said,
“With significant network and fleet expansion and sustained growth over the last few months, 2022 has been a phenomenal year for Vistara in terms of our operational and financial performance. Each member of the Vistara family is incredibly proud of our collective achievements in an extremely challenging business environment that included the third wave of the pandemic and escalating costs. We are now aiming for higher goals as we enter the next phase of our growth journey.”
Vistara’s profit was reported during one of the busiest travel periods in India. Some travellers came out in large numbers during the holiday season in December last year, which made Vistara cash in on travel demand.
While analyzing the numbers, the carrier seems to have had a good financial year, revealing that its international network grew more than 180% in 2022. This was due to the introduction of seven new routes to three destinations: Abu Dhabi, Jeddah, and Muscat.
The carrier’s domestic market also grew by 50%, adding new destinations such as Coimbatore and Jaipur. Its capacity and passengers increased by 37% and 47%, respectively, compared to the previous year’s financial period.
The Airline’s Future
Vistara airline’s latest announcement sees a move towards a merger with Air India. Currently, representatives for both carriers are working around the clock to get the required approvals from respective authorities. The Merger is expected to take place in 2024.
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