Jet Airways has posted a net loss of Rs 123.2 crore for the fiscal first quarter ended June 30, as against a profit of Rs 3.5 crore in the same period last year, due to higher aviation turbine fuel costs.

The airline was adversely impacted by a 57 per cent increase in fuel expenses, which stood at Rs 1,563 crore, as against Rs 995 crore in the corresponding period.

The company's standalone revenues, however, increased by 19.4 per cent, to Rs 3,541 crore from Rs 2,965 crore.

Commenting on the results, Mr Nikos Kardassis, Chief Executive Officer, Jet Airways Ltd said, “The near term poses some challenge in terms of crude oil prices, but I am sure we will come out of this as a much stronger and smarter airline.”

Jet Lite also posted a loss of Rs 5.3 crore as against a profit of Rs 4.9 crore in the corresponding quarter last year. The low-cost carrier's revenues also decreased by 9 per cent, to Rs 432 crore, from Rs 475 crore in the previous year. .

Outlook

Jet Lite's fuel costs increased by 46 per cent during the quarter to Rs 277 crore, from Rs 188 crore in the corresponding quarter last year.

The company said high crude, which continues to be in the $100 a barrel level, will impact its second quarter financial numbers. “For the domestic business, we expect muted growth in capacity over the next few months while demand continues to grow at around 15 per cent. Pricing activities by competition continues and this will put pressure on yields in what already is the weakest quarter of the year,” according to the Jet Airways statement.

The company is also exploring various options to raise finances in order to meet its short-term and long-term obligations, including financial support to Jet Lite. “These measures would result in sustainable cash flows,” it said.

The airline expects better performance in the international sector. Despite high fuel prices, Jet Airways expects to increase yields marginally during the second quarter due to seasonality.

Operational Performance

Jet Airways' domestic operations accounted for 43 per cent of the total revenue, at Rs 1,546 crore. The domestic traffic grew by 12 per cent for the quarter, while the industry traffic grew by 15 per cent. Seat factor for Jet Airways domestic was 74.6 per cent during the first quarter.

Its international operations accounted for 47 per cent of the total revenue, at Rs 2,036 crore. The airline clocked 80.5 per cent seat factor. International traffic grew by 19.6 per cent during the quarter.

Despite the loss, the Jet Airways scrip closed 2.36 per cent higher (at Rs 499.05) on the Bombay Stock Exchange (BSE) Friday.

Related Topics
comment COMMENT NOW