Vistara reports first profit since inception in Dec’22

VISTARA

Full-service carrier Vistara reported a profit for the first time since its inception in the three months that ended in December 2022. Without disclosing the exact profit figure in the December quarter, the airline also said it crossed the USD 1 billion revenue mark and remained EBITDA positive in the current fiscal year. EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.

“For the first time since inception, the airline reported a net profit (excluding unrealised foreign currency loss and non-operating income) for the quarter ended December 2022,” it said in a release.

A joint venture between Tata Sons and Singapore Airlines, the airline started operations on January 9, 2015, and currently has a fleet of 52 planes.

VISTARA
Vistara reports first profit since inception in Dec’22

This comes on the back of record losses of INR 2,031 crore reported by the full-service carrier during FY22, which was 35% higher than in FY21. However, it grabbed the second-largest airline by market share for FY22 behind IndiGo.

“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 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 pandemic and escalating costs. We are now aiming for higher goals as we enter the next phase of our growth journey.”

Vinod Kannan, CEO, Vistara

Vistara registered an 11% year-on-year growth in the member base for its frequent flyer program – Club Vistara. In the calendar year 2022, the airline flew more than 11 million passengers. For the December quarter, the airline grew its capacity by 37% and posted a 47% rise in passengers compared to last year.

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

ALSO READ – IndiGo ranked No.1 in On-Time Performance in November, followed by Vistara and Air India

VISTARA
Vistara registered an 11% year-on-year growth in the member base for its frequent flyer program – Club Vistara.

The airline — which has more than 5,000 employees and operates close to 8,500 flights per month — had a domestic market share of 9.2% in December 2022. The airline recorded the second-highest on-time performance at four key metros and over 85% domestic load factor for most of the year. In November last year, Singapore Airlines said Vistara would be merged with Tata group-owned Air India.

ALSO READ – Vistara launches daily non-stop Mumbai-Muscat flights on its A320

Vistara grew its international network by over 180% in 2022, by adding seven additional routes to its portfolio. These include three new destinations — Jeddah, Abu Dhabi and Muscat. The airline grew its domestic network by over 50%, adding six new routes including two new destinations — Coimbatore and Jaipur.

ALSO READ – Vistara adds new flights to Frankfurt and Paris on its new B787 Dreamliner

The airline, which is a joint venture between the Tata Group and Singapore Airlines, recently celebrated its 8th anniversary and connects more than 40 destinations across 13 countries with over 260 flights a day.

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