Burdened by high fuel and labour costs, cash-strapped Air India suffered a net loss of Rs 5,548 crore in 2008-09, as its total revenue declined by around Rs 2,000 crore compared to the previous fiscal.

The losses came down from Rs 7,200 crore the airline suffered in 2007-08 to Rs 5,548.26 crore in 2008-09. Total revenue fell to Rs 13,479 crore in FY'09 from Rs 15,252 crore during the previous fiscal.

The Air India board, which met in Chennai today, approved the annual accounts for the last fiscal, with the losses and fall in revenue resulting out of the global financial meltdown, low passenger load factors and falling yields.

The airline is facing a strike threat by pilots from November 24 after it proposed to slash incentives and allowances for them and other sections of employees as part of the cost-cutting measures.

A Group of Ministers (GoM), headed by Finance Minister Pranab Mukherjee, would be meeting tomorrow to discuss the financial state of affairs and its restructuring and turnaround plan to take a call on government assistance to the ailing national carrier by way of equity infusion and soft loan.