Jet Airways Q4 profit falls 91% on fuel cost, low fares
NEW DELHI: Jet Airways (India) Ltd on Tuesday reported a 91% decline in March quarter net profit, hit by higher fuel costs, lower airfares and weak demand from the key Gulf region.
India’s second largest airline by passengers carried said net profit during the quarter fell to ₹36.80 crore from ₹397.16 crore a year ago. Revenue in the quarter rose to ₹5,759.58 crore from ₹5,451.28 crore a year ago.
Net profit in the full fiscal year fell as well, down 64% to ₹438.45 crore from ₹1,211.65 crore a year ago. Revenue in the year rose to ₹23,669.91 crore from ₹22,906.06 crore the year before. Expenses rose to ₹23,279.71 crore from ₹21,852.13 crore.
“The past year has been extremely challenging for both domestic and international markets,” chairman Naresh Goyal said in a statement.
“Notwithstanding the growth in traffic in the domestic market, downward pressure on yields continued despite rise in oil prices. We achieved positive results through our relentless effort to streamline operations, improve productivity and business performance, enabling us to reduce our debt by ₹1,902 crore during this year, despite weakening demand in certain international markets, especially the Gulf.”
An analyst said the dip in profits was alarming. “The significant drop highlights profitability challenges and higher nearterm risks for Jet Airways,” said Kapil Kaul, South Asia CEO of consulting firm CAPA.