India’s full-service carrier Vistara has finally reported its first quarterly profit in its eight-year operational history. The airline is known for its onboard service backed by the trusted Tata brand, but it had failed to turn a profit all these years. However, that has changed now as Vistara emerges from the shadows of the pandemic and inches closer to a merger with Air India.
First time ever
Vistara has announced a profitable October-December quarter in 2022, its first since it began operations in 2015. Without revealing the bottom line numbers, the airline announced that it has had a profitable third quarter and has already crossed $1 billion in revenue this financial year.
It should be noted that the financial cycle in India begins on April 1st and ends on March 31st of the following year. Vistara still has one more quarter to go to get a proper picture of the whole year but has remained EBITDA (earnings before interest, tax, depreciation, and amortization) positive in the first nine months.
The current figures, however, do not consider unrealized foreign currency loss and non-operating income for the quarter. Vinod Kannan, Vistara’s Chief Executive Officer, commented,
“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.”
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Impressive figures
Vistara’s profit was recorded in what is considered one of the busiest travel periods in India. Passengers came out in huge numbers during the festive rush and the holiday period in December, and all airlines, and certainly Vistara, cashed in on demand.
On the whole, the airline seems to have performed well in this financial year, revealing that its international network expanded by more than 180% in 2022. This was contributed by its seven new routes to three destinations – Abu Dhabi, Jeddah, and Muscat.
Vistara’s domestic network also grew by 50%, with several new destinations on its map, such as Jaipur and Coimbatore. It also saw a capacity increase of 37% and a passenger increase of 47% compared to the same period a year before.
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Looking ahead
The latest announcement comes as Vistara moves towards a merger with Air India. Currently, the management teams of both airlines are busy getting all the necessary approvals, with the merger expected to take place next year.
The airline, which is a joint venture between the Tata Group and Singapore Airlines, recently celebrated its 8th year anniversary and connects more than 40 destinations across 13 countries with over 260 flights a day.
What do you think about Vistara’s Q3 results? Please leave a comment below.