Air India’s announcement of an upto 50 percent discount on air fares comes after it registered a net profit of Rs. 14.6 crore in December 2014. The substantial net profit is met with surprise as Air India had registered a loss of as much as Rs. 168.7 crore in December the previous year.
According to sources, this profit could have been the effect of fall in crude oil prices and an increase in passenger revenue. From $115.06 a barrel on 19 June to $48.73 a barrel now, Brent crude has come down to almost 57 percent. Air India, however, is expected to register a loss of Rs. 3,900 crore for the last fiscal.
However, Air India recently announced a sale on tickets purchased between January 12 – 18, for travel in the period of January 16 to April 30, with ticket prices starting at an amount as low as Rs. 1,557.
The sale comes as a move to compete with the newly launched airline Vistara, which incidently is offering air fares lower than the slashed fares of Air India and Jet Airways.