Naresh Goyal-con­trolled Jet posts lower profit in June quar­ter

Comes on the back of fall­ing rev­enue be­cause of lower air­fares

The Financial Express - - FRONT PAGE - Fe Bureau

Mum­bai, Aug 12: Mum­baibased full ser­vice car­rier Jet Air­ways on Fri­day re­ported a 53.47% year-on-year de­cline in its stand­alone net profit to R 103.14 cr ore for the quar­ter ended June 30 as a con­se­quence of sig­nif­i­cant drop in air fares and fuel ex­penses in the do­mes­tic sec­tor and an ex­cep­tional gain made in the cor­re­spond­ing quar­ter of FY 16 of R127.95 crore due to the re­fund re­ceived from the lessors for the air­craft main­te­nance ex­penses.

Due to low ticket prices of­fered by the air­line dur­ing the quar­ter, to­tal rev­enue or the top line fell by 2.99% y-o-y to R4,689.87 crore when com­pared to R4,834.5 crore in the year ago pe­riod.

Rev­enue from the do­mes­tic sec­tor de­clined by 99.04 % y-o-y to R 2,104.70 cr ore. The same from the in­ter­na­tional routes re­mained flat at R2,198.22 crore.

Dur­ing the quar­ter jet fuel ex­penses of the com­pany de­creased by 19.9% y-o-y to R1,156.48 crore while the air­craft main­te­nance cost dipped by 15.9% y-o-y to R491.71 crore. The rentals for the air­craft in­creased by a 5.5% dur­ing the same time. As a con­se­quence of de­crease in the ex­penses the (EBITDAR) or the op­er­at­ing profit of the air­line in­creased by 15.61% y-o-y to R1,251 crore.

“Jet Air­ways has strength­ened its core op­er­a­tions and achieved bet­ter ca­pac­ity uti­liza­tion and greater ef­fi­ciency. We have been able to re­port lower non-fuel cost in spite of in­fla­tion­ary in­creases and weak­en­ing of In­dian Ru­pee against US Dol­lar by almost 6%,” Naresh Goyal, chair­man, Jet Air­ways said.

Due to the fluc­tu­a­tion in the dol­lar ru­pee ex­change rate Jet air­ways saw its other ex­penses in­crease to R1,266.58 crore in the quar­ter from R1,160.48 crore in the first quar­ter of the last fis­cal.

Over­all code­share traf­fic for the first quar­ter of FY17 grew 13% to 5,51,859 pas­sen­gers. A wider net­work of code­shares now en­ables Jet Air­ways to of­fer sig­nif­i­cantly en­hanced global con­nec­tiv­ity and has helped de­liver the in­crease in pas­sen­ger traf­fic.

“We will con­tinue to strengthen the part­ner­ship be­tween Jet Air­ways and Eti­had Air­ways by driv­ing fur­ther syn­er­gies, along with other Eti­had Air­ways Part­ner air­lines. In a com­pet­i­tive mar­ket, we have to­geth­er­cre­ated a win­ning com­bi­na­tion of a wider com­bined net­work and ex­cep­tional guest ex­pe­ri­ence for trav­el­ers to and from In­dia,” James Ho­gan, vice chair­man, Jet Air­ways and pres­i­dent and chief ex­ec­u­tive of­fi­cer, Eti­had Avi­a­tion Group said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.