The low-cost carrier, which first started its operations in 2004, has been registering profits for four years since 2015-16, though its parent company Air India has been struggling to survive due to huge legacy and operational costs.

AI Express remaining profitable assumes significance as the government is in the process of divesting Air India after a failed attempt earlier this year.

AI Express’ chief executive officer K Shyam Sundar said the net profit posted in the last fiscal was particularly significant as the aviation sector has had to face many challenges, including high input costs. Fuel costs rose around 35% in the last fiscal. About 40% of the airline’s cost is on fuel. “Despite this, we were able to drive in profit by greater utilisation of our assets and resources such as aircraft, manpower and materials. Through concerted cost measures, the airline was able to contain the unit cost incurred on expenses other than fuel to be at the same level as in FY18,” Sundar said.