New Delhi, Sept. 26: Air-India has posted a lower gross profit of Rs 17 crore in 2005-06, mainly on account of high oil prices. The airline’s fuel bill had increased to Rs 3,134 crore in 2005-06 from Rs 2,182 crore in the year-ago period. The fuel cost, as a result, has bloated to 33 per cent of total expenses, from 28 per cent in the year-ago period.

Official sources said the state-run airline’s net profit plummeted by over 80 per cent to Rs 16.5 crore.

The lower profit came despite a 25 per cent increase in total revenue to Rs 9,677 crore from Rs 7,750 crore in 2004-05. There was, however, a matching 25 per cent increase in total expenditure to Rs 9,660 crore in 2005-06 against Rs 7,690 crore in the previous year, the sources said.