Press Esc to close
Tuesday 27 January 2015
News updated at 5:54 PM IST
Weather
Max: 26°C
Min : 18°C
In Bengaluru
Sunny day

Jet Airways flies back into black

Mumbai, Feb1, 2013, DHNS:

Jet Airways, which is close to making equity deal with Etihad Airways, on Friday reported net profit of Rs 85 crore for the quarter ended December 31, 2013 from an earlier loss of Rs 101 crore in the same quarter last fiscal.

Its revenues grew nearly 7 per cent, which is lower than expected, to Rs 4,205.8 crore from Rs 3,939.2 crore on year-on-year (YoY) basis. Average Gross Revenue per Passenger (Yield) was up 18.6 per cent during the quarter.

Aviation experts aver that the company's flying back to profit-lane was due to some deft move like buying more jet fuel directly from overseas suppliers and other cost cuts, which helped improve yields despite slowdown in traffic growth.  

Jet Airways CEO Nikos Kardassis said the airline took all measures to boost earnings and cut costs, while at the same time strived to enhance ancillary revenues to boost overall performance. “All of our efforts on revenues, costs and network side have resulted in turning around the airline operations. This is despite higher fuel prices and rupee depreciation impact that we have had in the last few months. The combined impact of higher yields and lower costs (ex fuel) have resulted in significantly lowering the breakeven seat factor levels in the business,” he said.

Consequently, Jet Airways gross yields per passenger grew 18.6 per cent and aviation fuel cost fell 3 per cent to Rs 1688 crore on year-on-year (YoY) basis. This is despite slowdown in traffic growth, higher fuel prices and impact of a weak rupee as against US dollar.

During the quarter under review, Jet Air suffered a foreign exchange loss of Rs 48 crore as against the gain of Rs 179 crore in the same quarter last fiscal as the rupee remained weak against the dollar.

Also, the company said that it has stopped capacity on loss making routes and will re-deploy aircraft on profitable high density routes in ensuing months. Currently, aircraft on ground have impacted topline by Rs 55 crore.

Further, the company CEO said, high aviation fuel cost and currency fluctuation remain a cause of concern for the sector. However, giving an outlook for Q4, he said passenger bookings are healthy but there could be some seasonality impact.


Go to Top

Photo Gallery
India's BSF 'Daredevils' motorcycle riders perform stunts as they take part during Republic Day...

India's BSF 'Daredevils' motorcycle riders perform stunts as they take part during Republic Day...

Make in India tableau on display during the 66th Republic Day parade at Rajpath...

Make in India tableau on display during the 66th Republic Day parade at Rajpath...

Prime Minister Narendra Modi paying homage at Amar Jawan Jyoti during the 66th Republic Day...

Prime Minister Narendra Modi paying homage at Amar Jawan Jyoti during the 66th Republic Day...

Pranab Mukherjee with Obama and Modi during an At-Home reception...

Pranab Mukherjee with Obama and Modi during an At-Home reception...

BSF officials perform during the 66th Republic Day Celebration at Attari Border in Amritsar...

BSF officials perform during the 66th Republic Day Celebration at Attari Border in Amritsar...

Illuminated Raisina Hill on the occasion of Republic Day in New Delhi...

Illuminated Raisina Hill on the occasion of Republic Day in New Delhi...

Amit Shah, Sonia Gandhi, Venkaiah Naidu and others using umbrellas as it rains...

Amit Shah, Sonia Gandhi, Venkaiah Naidu and others using umbrellas as it rains...

Mechanised columns on display during the 66th Republic Day parade at Rajpath...

Mechanised columns on display during the 66th Republic Day parade at Rajpath...

A view shows Indian Army soldiers marching past the India Gate during the Republic Day...

A view shows Indian Army soldiers marching past the India Gate during the Republic Day...

Navy's women contingent marches during the 66th Republic Day Celebration...

Navy's women contingent marches during the 66th Republic Day Celebration...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523