MUMBAI: National carrier Air India on Wednesday announced a net loss of 55.48 billion rupees (1.19 billion dollars) for the fiscal year ended March, hit by the global recession and low air traffic.

Revenues for the year to March 2009 fell nearly 12 per cent to 134.79 billion rupees, the airline said in a press release after its board meeting on Wednesday to approve the accounts.

The debt-ridden state-run airline is seeking a financial bailout from the government.

Last month, Civil Aviation Minister Praful Patel said the government may give the ailing flag carrier a one-billion-dollar bailout on condition that it cuts costs.

The government is planning to inject 50 billion rupees (one billion dollars) in phases, Patel said in October, but the handout would be conditional on measures to cut costs and increase revenues.

The minister said Air India had targeted 30 billion rupees in cost cuts and was aiming to increase revenues by 20 billion rupees ‘over the next two years.’ Air India operates 435 flights to 117 destinations in India and overseas daily, with a fleet of 147 aircraft.

The airline has in the past year tried to lower costs by cutting loss-making routes, rationalising wages and phasing out old aircraft.

‘Cost-cutting measures and a pick-up in demand in domestic and international traffic are likely to result in improvement in the operating performance for the year 2009-10,’ Air India said in its press statement, subject to fuel prices remaining stable.

Air India is not listed.

India’s airline industry has been hit by overcapacity and a sharp drop in passenger numbers as a result of the global economic slowdown.— AFP