Jet Airways slips into red with ~10.4 bn loss in Q4
Jet Airways slipped into the red with a ~10.40 billion net loss during the fourth quarter of 2017-18 on rising costs and a sharp fall in other income. During the same period last year, the airline had registered a net profit of ~5.83 billion. The airline had posted profits for three preceding quarters though its profit declined in the first nine months of the financial year.
Jet Airways slipped into the red with a ~10.4 billion net loss during the fourth quarter of 2017-18 on rising costs and sharp fall in other income. During the same period last year, it had posted a net profit of ~5.83 billion.
The airline had posted profits for three preceding quarters though its profit declined on lower other income in the first nine months of the fiscal year. Other income includes profit from sale and lease of aircraft and gains from realty development. On a standalone basis, other income fell 84 per cent to ~1.3 billion while overall expenses rose 25 per cent to ~70.91 billion in Q4 of FY18. Total revenue was up 8 per cent to ~61.96 billion.
This was Jet's first loss after 11 consecutive quarters of profit. Auditors have made an observation regarding its ability to continue as a going concern following full year loss and its negative
net worth. The management, however, is confident that its cost saving and revenue management initiatives will help address uncertainties.
The airline’s management blamed the weak Q4 result on rising fuel price, weakening rupee and one-time maintenance charges resulting in extra expenses of ~7.75 billion on a year-on-year basis. Expenses in all heads showed an increase except salary bill and lease rentals.
“Despite these challenges, in Q4, Jet increased its capacity by over 10 per cent. Its passenger load factor grew by 3.9 per cent points and reported a positive year-over-year passenger and cargo unit revenue, reduced net debt (excluding debt taken for Bandra-Kurla complex property) by ~3.59 billion and achieved a year-overyear reduction in non-fuel unit costs of 1.1 per cent,” the airline said.