Press Esc to close
Monday 30 May 2016
News updated at 2:15 AM IST
Weather
Max: 33.2°C
Min : 22.3°C
In Bengaluru
Partially cloudy

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
Sunrisers Hyderabad players celebrates with VIVO 2016 IPL champiionship Trophy after winning the...

Sunrisers Hyderabad players celebrates with VIVO 2016 IPL champiionship Trophy after winning the...

Sunrisers Hyderabad Ben Cutting (C) celebrates the wicket of Chris Gayle during the IPL 2016...

Sunrisers Hyderabad Ben Cutting (C) celebrates the wicket of Chris Gayle during the IPL 2016...

Royal Challengers Bengaluru player Chris Gayle raises his bat towards crowd against Sunrisers...

Royal Challengers Bengaluru player Chris Gayle raises his bat towards crowd against Sunrisers...

Dharani Selvakumar takes part in senior category, at the All Cargo National surfing event Indian...

Dharani Selvakumar takes part in senior category, at the All Cargo National surfing event Indian...

A large number of cricket fans cheers during the Royal Challengers Bengaluru V/s Sunrisers...

A large number of cricket fans cheers during the Royal Challengers Bengaluru V/s Sunrisers...

A shepherd flocking sheep on the Tosamaidan meadow, in district Budgam of central Kashmir...

A shepherd flocking sheep on the Tosamaidan meadow, in district Budgam of central Kashmir...

Visitors at an Electric Vehicles Expo in Kolkata on Sunday...

Visitors at an Electric Vehicles Expo in Kolkata on Sunday...

Smoke billowing out after a major fire at an AC kit manufacturing facility at Manesar, Gurgaon...

Smoke billowing out after a major fire at an AC kit manufacturing facility at Manesar, Gurgaon...

Girls enjoying in the Arabian sea against the backdrop of monsoon clouds in Kochi...

Girls enjoying in the Arabian sea against the backdrop of monsoon clouds in Kochi...

A Sikh devotee paying obeisance at the Golden Temple on the occasion of Guru Gaddi diwas of sixth..

A Sikh devotee paying obeisance at the Golden Temple on the occasion of Guru Gaddi diwas of sixth..

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