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The Tata Group’s aviation business, which includes Air India, Air India Express, Tata SIA Airlines (Vistara) and AIX Connect (formerly AirAsia India), narrowed losses to Rs 6,337 crore from Rs 15,414 crore in the previous fiscal year, according to the Tata Sons FY24 annual report. The group’s digital and electronics business grew 148% to Rs 1,612 crore, with net losses widening to Rs 2,223 crore from Rs 1,723 crore.
Tata Sons is the holding company of the Tata Group.
Air India, privatised in 2022, recorded its highest-ever consolidated revenue of Rs 51,365 crore in FY24, a 24% increase over the previous year, driven by a growth in capacity to 105 billion available seat kilometres (ASKM) and an improvement in passenger load factor to 85%.
InterGlobe Aviation, which operates the country’s largest carrier IndiGo, reported Rs 68,904 crore in revenue and net profit of Rs 8,167 crore in FY24.
Tata Sons did not comment.
“The businesses of the future are a big focus for the group and challenges in aviation and ecommerce will gradually be ironed out through effective strategy execution,” said the head of a top domestic investment fund who didn’t want to be identified. “These are no easy sectors to operate in but these are also core and part of nation building and therefore it is critical for Tatas to win. There is a lot of faith in the group’s leadership.”
On a standalone basis, Air India narrowed its losses to Rs 4,444 crore in FY24, from Rs 11,388 crore in FY23, with turnover surging 23% to Rs 38,812 crore. Tata SIA Airlines, which operates the Vistara brand, reported a 29% increase in turnover to Rs 15,191 crore and reduced its losses to Rs 581 crore in FY24 from Rs 1,394 crore the previous year.
The annual report said Tata Digital, across its portfolio, had 20.76 million transacting customers in FY24, generating aggregate gross merchandise value (GMV) of Rs 37,355 crore.
As previously reported, Tata Sons’ net profit rose 57% to Rs 34,654 crore while revenue increased 25% to ₹43,893 crore. Tata Sons also paid its highest-ever dividend of Rs 35,000 per share to shareholders.
Tata Sons chairman N Chandrasekaran received a remuneration of Rs 135 crore in FY24, a jump of nearly 20% from Rs 113 crore in FY23. Of this, Rs 12.43 crore was salary and Rs 121.50 crore was “commission”, according to the annual report.
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