Jet Airways reports ₹1,036 crore Q4 loss

MUMBAI: Jet Airways (India) Ltd on Wednesday reported a loss of ₹1,036 crore, , excluding those of its units, in the March quarter, as the airline saw its revenue decline and costs increase significantly during the quarter.

The airline, which had reported a profit (excluding financials of subsidiary Jetlite) of ₹602.42 crore during the same period of the previous year, said that its loss had resulted in a negative net worth at the end of the March quarter.

Jet Airways, which has about 14.7% of the domestic market share, was widely expected to report a small profit though analysts expected the airline’s yields to decline during the March 2018 quarter on the back of a higher fuel price and a slow growth of domestic passengers (as compared to a year-ago period).

Jet Airways chief executive (CEO) Vinay Dube said in a statement that the airline’s financial performance during the quarter was weaker because of the continuing increase in the price of Brent fuel without a corresponding increase in air fares, as well as mark-to-market adjustments because of a weaker rupee.

During the last 12 months, Brent crude price, which currently stands at $78.54 a barrel, has risen by 45.87%.

Jet Airways reported standalone revenue of ₹6,055.15 crore during the March 2018 quarter, down from the ₹6,271.21 crore it reported during the same period of the previous year. The airline’s costs (total expenses) during the March quarter rose to ₹7,091.15 crore, up from the ₹5,668.79 crore that it had reported during the same period of the previous year.

The costs of the airline rose even after it had introduced several cost saving schemes, including salary cuts for a part of its workforce (during FY18).

On a consolidated basis (including financials of subsidiary Jet Lite), Jet Airways reported a loss of ₹636.45 crore during FY18 on the back of revenue of ₹25,177.47 crore.

“The company has incurred a loss during the year and has negative net worth as at 31st March, 2018 that may create uncertainties,” Jet Airways said in its results document.