Jet Air­ways Q2 net plunges 91% on forex losses, higher fuel costs

The Hindu Business Line - - NEWS -

Jet Air­ways re­ported a 91 per cent slump in net profit in the Septem­ber 2017 quar­ter, bogged down by mas­sive forex losses and higher fuel costs.

Stand­alone net profit for the quar­ter was ₹49.63 crore, the com­pany said in a fil­ing with stock ex­changes. A year ago, net profit had stood at ₹548.82 crore. While rev­enue stag­nated at ₹5,758 crore for the pe­riod, the air­line re­ported forex loss of ₹72.99 crore in the quar­ter as op­posed to a forex gain of ₹117.9 crore in the year-ago pe­riod. Profit on sale and lease­back of air­craft for the quar­ter was nil com­pared to ₹190.22 crore last year. Air­craft fuel ex­penses rose over 16 per cent to ₹1,525.66 crore for the quar­ter.

A press re­lease by Jet Air­ways said the net profit for the group stood at ₹71 crore while net debt re­duced by ₹194 crore. Pas­sen­ger rev­enue in­creased to ₹5,147 crore while avail­able seat kilo­me­ters (ASK) in­creased by 7.7 per cent to 14 bil­lion, over Q2 FY17, the com­pany said.

“De­spite an in­crease in the Brent fuel price, the over­all CASK (cost per avail­able seat km) dropped due to the air­line’s on­go­ing ef­forts to im­prove op­er­a­tional ef­fi­cien­cies through­out its business. CASK-ex­clud­ing fuel fell 5.3 per­cent to ₹3.07 against ₹3.24 in Q2 FY17 in line with Jet Air­ways’ plan to achieve a 12-15 per­cent re­duc­tion in non-fuel CASK over the next 8-10 quar­ters,” the said.

It quoted Vi­nay Dube, CEO, as say­ing: “The weak de­mand in the Gulf con­tin­ues, whilst low fares as well as yields in the do­mes­tic mar­ket have lim­ited the abil­ity to off­set the in­crease in fuel prices. In line with our com­mit­ment to of­fer guests a su­pe­rior ex­pe­ri­ence, we con­tinue to grow our do­mes­tic pres­ence while keep­ing a tight con­trol on costs, re­flect­ing in the re­duc­tion in non-fuel CASK.”

The com­pany stock closed re­lease up 2.04 per cent on the BSE at ₹696.75.

In a sep­a­rate fil­ing with the stock ex­changes, the air­line ap­pointed Kevin Knight to its board as the nom­i­nee for mi­nor­ity share­holder Eti­had Air­ways in place of James Rigney. Knight is the Group Chief Strat­egy and Plan­ning Of­fi­cer at Eti­had.

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