Naresh Goyal-controlled Jet posts lower profit in June quarter

Comes on the back of falling revenue because of lower airfares

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.