Jet more than doubles profit to ~53.5 cr

The second-largest airline, Jet Airways, on Tuesday said its standalone net income more than doubled to ~53.5 crore in the three months to June against ~25.9 crore a year ago, helped by higher other income.

This is the ninth consecutive profitable quarter for the airline after a recovery driven by a rising market and a low fuel price regime since mid2014.

Revenue from operations grew 10 per cent to ~5,648 crore due to increase in number of passengers and average fares. Expenses rose 11.6 per cent to ~5,843 crore, largely on account of higher fuel cost. The airline managed to lower its unit costs, excluding fuel.

Gains including ~113-crore profit on completion of land development project in Bandra Kurla Complex in Mumbai and lower provision with respect to its subsidiary JetLite boosted the company's Q1 results. During the quarter, the airline made a provision of ~56 crore as against ~80 crore in the same period last year. The airline switched to Indian Accounting Standard from April.

Total income of the Naresh Goyal-promoted airline rose to ~5,953 crore from ~5,341 crore, an increase of 11.3 per cent driven by increased load factor and an average rise in fares, which was also boosted by increased codeshares with international airlines.

Standalone numbers do not include its subsidiary JetLite. Including this, net profit rose to ~58 crore, helped by an 11.8 per cent rise in passenger revenue at ~5,136 crore.

The airline attributed the healthy set of numbers to a 19 per cent jump in codeshare revenue and a 2.5 per cent decline in non-fuel costs on the back of its continuing efforts to prune cost and improve operational efficiencies. Despite this, consolidated Ebitdar (earnings before interest, taxes, depreciation, amortisation and rent/restructuring costs) declined to ~1,005 crore from ~1,027 crore, the airline said.

The numbers would have been much higher had it not been for a one-time provision of ~56.6 crore for doubtful loans, the airline said.

"Despite being adversely impacted by a rise in fuel price that led to an increase in total cost per available seat kms (CASK), we continued our focus to ensure operational efficiencies, leading to a further reduction in CASK excluding fuel, which dropped by 2.5 per cent to ~3.22 from ~3.30 a year ago," the airline said.

The numbers were also boosted by a 3.4 per cent rise in domestic average fares, reversing an otherwise declining trend witnessed in the last few quarters.

Chairman Naresh Goyal said the airline took several measures to revitalise its business and realise greater efficiencies in spite of weakening international demand, especially from the Gulf.

Total income of the Naresh Goyal-promoted airline rose to ~5,953 crore from ~5,341 crore, an increase of 11.3%