Income from operations rises to Rs 4,138 cr, forex gain at Rs 70 cr

Jet Airways’ net loss shrunk to Rs 100 crore in the September quarter from Rs 714 crore in the year ago period on the back of a forex gain of Rs 70 crore and a jump in operating income.

The airlines posted a forex loss of Rs 276 crore in the corresponding period last year.

Total income from operations increased to Rs 4,138 crore (Rs 3,293 crore).

“Lean season, economic slowdown and consequential dip in industry passenger traffic coupled with high fuel prices and rupee depreciation has affected the overall results,” the company said. Fuel rates increased 17 per cent year on year, a portion of this was passed on to the passengers in the form of increase in fuel surcharge during the quarter. The company said that the full impact of this would be seen from the current quarter.

Aircraft fuel expenses increased to Rs 1,681 crore for the quarter ended September 31, from Rs 1,491 crore in the corresponding quarter last year. Finance cost also increased to Rs 322 crore (Rs 228 crore).

Nikos Kardassis, Chief Executive Officer, said, “Improvement in yields helped the group post an operating profit, however, lean season, slowdown in industry passenger traffic due to weakened economic scenario, high fuel prices coupled with high rupee depreciation versus the dollar pulled the overall results down. We have focused on removing loss making routes, network rationalisation and selectively adding routes which made economic sense.”

Domestic operations accounted for 41 per cent of total revenues. Domestic traffic went down 6.6 per cent for the September quarter as compared to the same period last year. Seat factors were 65.6 per cent.

International operations accounted for 59 per cent of total revenues. Over this period, the achieved seat factor on the international routes was around 80 per cent. International traffic went down 2.1 per cent for the quarter.

On Friday, shares of Jet Airways closed at Rs 361.45, up 3.09 per cent, on the Bombay Stock Exchange.

nivedita.ganguly@thehindu.co.in

(This article was published on November 2, 2012)
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