Vistara Reports Profit For the First Time Since Inception; Crosses $1 bn Mark in FY23

Vistara Reports Profit: Ahead of its merger with Tata-owned Air India, Gurugram-based Vistara on Monday reported that it crossed the $1 billion revenue mark and remained EBITDA positive in the current fiscal year. The airline also reported break even for the first time in October-December quarter.

The airline did not disclose the profit figure, but said that it excluded unrealised foreign exchange loss.

On a year-on-year basis Vistara said it grew its capacity and passenger traffic by 37 per cent and 47 per cent, respectively, in the third quarter.

In a statement, the Tata-Singapore Airlines JV airline said it achieved strong performance in 2022, crossing the $1 billion revenue mark and remaining Ebitda positive in the first nine months of FY23. Ebitda refers to earnings before interest, tax, depreciation and amortisation.

Growth was achieved due to an increase in frequencies on domestic routes and the launch of new destinations such as Jeddah, Abu Dhabi and Muscat. Operations were strengthened at Mumbai and Delhi airports. In 2022, the airline flew 11 million passengers and came second in domestic market share, behind IndiGo. On a full-year basis, international and domestic capacity grew by 180 per cent and 50 per cent, respectively. The airline’s frequent flyer membership also rose by 11 per cent.

Vinod Kannan, Chief Executive Officer, Vistara, 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.”

“We are now aiming for higher goals as we enter the next phase of our growth journey,” he added.

Earlier in July 2022, the airline achieved highest ever domestic market share of 10.4 percent. The airline has maintained its second position in terms of domestic market share since then.

At present, Vistara has over 5,000 employees and operates close to 8,500 flights per month. The airline recorded second highest on-time performance at four key metros and over 85 percent domestic load factor for most of the year.

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