Companies

High fuel costs sting Jet Airways' Q4 net

Our Bureau Mumbai | Updated on May 19, 2011 Published on May 19, 2011

Jet.eps

Soaring fuel costs blunted the increasing demand in air travel for Jet Airways Ltd, as the company reported a consolidated net loss of Rs 200 crore for the fourth quarter ended March 31, 2011. In the corresponding quarter of the previous year, Jet Airways had a consolidated net profit of Rs 225 crore.

The company had consolidated revenues of Rs 3,656 crore (Rs 3,183 crore) for the quarter under review, a growth of 14.8 per cent.

“The fuel cost was 39 per cent of the total costs as against 32 per cent during Q4 FY 2010. During the period, there was an unprecedented increase in prices of fuel, which airlines were not able to pass on to the customer fully. Though airlines did take increases in fuel surcharges, the full impact of the same will come through only in the next quarter,” Jet Airways said in a statement.

Jet Group's fuel costs rose by 54 per cent to Rs 1,523 crore from Rs 992 crore in the corresponding quarter last year.

Mr Nikos Kardassis, Chief Executive Officer, Jet Airways Ltd said, “While we may not be able to impact external factors, our relentless focus remains on improving efficiencies and productivity in our operations. Airlines across the world have been impacted by the rude crude shock lately and Jet Airways is no exception. Though we would have liked to pass through all of the fuel price increases, it was not possible to do that in the short-term.”

International business contributed 58.2 per cent to the total business with revenues at Rs 1,915.3 crore and a seat factor of 80.4 per cent. Domestic operations contributed 41.8 per cent to the total revenues, with revenues at Rs 1,372.9 crore and a seat factor of 73 per cent.



Jet Lite's standalone net loss

Individually, Jet Airways on a standalone basis reported a fourth quarter net loss of Rs 124.5 crore against a net profit of Rs 58.6 crore in the same quarter last year. Net revenues stood at Rs 3,288.1 crore a growth of 14.3 per cent over the corresponding quarter last year.

Jet Lite reported a standalone net loss for the fourth quarter at Rs 75.7 crore against a net profit of Rs 166.2 crore in the corresponding quarter last year. Its standalone net revenue stood at Rs 441.3 crore, a four per cent dip from Rs 462 crore in the same quarter last year.

Lower losses

For the full fiscal, Jet Airways managed to cut its losses on a consolidated basis. Consolidated net loss for the 2010-11 fiscal stood at Rs 85.84 crore against Rs 420.1 crore in the previous fiscal. On a standalone basis, the airline reported a net profit of Rs 9.69 crore against a net loss of Rs 467.64 crore in the previous fiscal.

The airline attributed the turnaround in standalone net profit to “strict cost control measures” implemented across various areas of the business along with route rationalising exercises. The board of directors did not recommend any dividend for the 2010-11 fiscal.

Jet Airways' scrip on the BSE closed 0.4 per cent lower on Thursday at Rs 458.15.

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Published on May 19, 2011
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