Air-India reported a nine-fold jump in net profit at Rs 112 crore (Rs 1.12 billion) during 2002-03, compared with Rs 15 crore (Rs 150 million) during the previous financial year, despite factoring in a loss from airline operations of Rs 189 crore (Rs 1.89 billion).

The profit was mainly on account of a government grant of Rs 100 crore (Rs 1 billion) for transferring three Airbus A-300 aircraft to Afghanistan's Ariana Airlines.

Air-India also earned around Rs 400 crore (Rs 4 billion) from bilaterals and commercial agreements with other international carriers.

Of this, Rs 181 crore (Rs 1.81 billion) were earned by way of pooled receipts and the remaining Rs 218 crore (Rs 2.18 billion) through block space and code-share arrangements, company executives said.

Air-India's total revenues increased by 12.78 per cent to Rs 5,658 crore (Rs 56.58 billion) during 2002-03 as against Rs 5,017 crore (Rs 50.17 billion) in the previous year, a company press release said.

Operating revenue was estimated at Rs 5,275 crore (Rs 52.75 billion) during 2002-03, compared to Rs 4,751 crore (Rs 47.51 billion) in the previous financial representing an increase of 11.03 per cent.

The growth in passenger earnings was lower than overall revenue growth. Passenger earnings increased 10.09 per cent to Rs 3,545 crore (Rs 35.45 billion) during 2002-03 compared to Rs 3,220 crore (Rs 32.20 billion) in the previous financial year.

Freight earnings growth was even lower at 4.7 per cent at Rs 400 crore at the end of March this year, compared to Rs 382 crore (Rs 3.82 billion) in 2001-02.

Expenses rose 10.92 per cent to Rs 5,545 crore (Rs 55.45 billion) at the end of March 2003 compared to Rs 4,999 crore (Rs 49.99 billion) in the corresponding period in 2001-02.

Of this, fuel cost was estimated at around Rs 1,100 crore (Rs 11 billion), as against Rs 909.80 crore (Rs 9.098 billion) during 2001-02.

The board cleared the annual accounts on Saturday. The board factored in a deferred tax benefit of Rs 32 crore (Rs 320 million) for the last financial year.

The Air-India release said that the airline ferried 3.39 million passengers during the year and achieved a load factor of 71.6 per cent, substantially higher than the 66 per cent load factor recorded during 2001-02.