Jet Airways on Friday reported a profit of Rs 63 crore for the December quarter on the back of the Rs 70 crore it booked as receivable from lessors for maintenance of its ATR and Boeing 777 aircraft fleet.
The airline, the country’s second-largest in terms of market share, had posted losses of Rs 268 crore in the same quarter a year ago.
“Pursuant to a power by the hour (PBTH) engine maintenance arrangements entered by the company with a service provider for its ATR and Boeing 777 aircraft engines, the PBTH costs are being charged to the statement of profit and loss, and variable rentals payable to the lessors, based on maintenance plan, are being recognised as receivable from lessors,” Jet Airways said in its earnings statement.
“Based on the joint validation of the company’s maintenance plan with the service provider, the company has recognised the expected refunds of variable rentals till March 31, 2014, as contribution receivable from lessors towards maintenance,” it added.
During the December quarter, Jet Airways reported an 11% rise in total revenues to Rs 5,051 crore from the same quarter of the previous year. During this period, the airline carried 58 lakh passengers, registering growth of 10.4%. It also registered a 5.2-percentage- point increase in passenger load factor to 82.1%.
During the quarter, Jet Airway’s cargo revenues were up 5.3% year-on-year to Rs 382 crore while code-share traffic at the airline increased 93% to 1,62,476 passengers.
Jet fuel prices, which contribute about 60-70% to an airline’s expenses, have fallen 33% in the last six months in India. However, Jet Airways expects to see the impact of the fall only in the next quarter.
“While global and local operating conditions have eased, we only expect to see the real impact of the lower fuel price in the next quarter,” Jet Airways’ chief executive Cramer Ball said.
The airline discontinued its fully owned full-service carrier from December 1 to cut down its losses in the no-frills segment.
“This was an important quarter for us as we commenced the roll-out of our single-brand full-service product on all flights across our domestic network. I am pleased with the encouraging response from our guests who have reaffirmed their trust in us in a highly competitive environment ,” Ball said.
“The enhanced global connectivity we now offer along with our partner Etihad Airways and other strategic codeshares has helped in a sustained increase in our international passenger traffic. Concurrently, our continuing focus on efficiency and network rationalisation have helped in achieving an improved business performance,” Ball added.