Better air traffic pulls Jet out of losses; net at Rs 106-cr

Written by fe Bureaus | Mumbai | Updated: Jan 27 2010, 04:19am hrs
Against the backdrop of better yields and improved air traffic, Indias largest private carrier by market share, Jet Airways has managed to post a net profit of Rs 105.80 crore for the December 2009 quarter as against Rs 214 crore loss in the same quarter, a year ago. The numbers were ahead of analysts expectations. The carrier, saw a decline of 4% in its revenues at Rs 2,936 crore against Rs 3,063 crore. That was mainly on account of lower revenues from its international operations since it has discontinued the Mumbai-Shanghai-San Francisco route since January 2009. The airlines revenues from the international segment narrowed to Rs 1,582 crore as against Rs 1,635 crore. The airline also took a hit of Rs 18 crore due to aircraft remaining on the ground for the quarter under review.

Meanwhile Jets share price rose 3.78% to close at Rs 539.20 on the Bombay Stock Exchange on Monday. The biggest savings came from aircraft fuel cost which stood at Rs 888 crore for the quarter as against Rs 1,094 crore, down 19%. Employee remuneration declined 21% to 289 crore.

Saroj Datta, executive director at Jet said that the airlines yield has improved 24% q-o-q basis on the domestic front and on their international network their yields have improved 9%. Datta said, We have leased four of our B777s ER to Turkish Airlines. The airlines income from lease rentals stood at Rs 106 crore for the quarter under review.

The positive results can be attributed to Jet Konnects performance, which, with a fleet of 17 B737 and 17 ATRs, is deployed on 2/3rd of the network of Jets presence in the country. Introduced in May 2009, JetKonnect is the low cost subsidiary of Jet which flies to 61 destinations domestically and has a market share of 26.9%.

The airline has recorded EBITDAR margins at 24.3% as against 12.6% on the domestic front.

In the international segment, it has registered an EBITDAR margin at 25% as against 11.2%.

Nikos Kardassis, CEO at Jet, said, The achievement is a result of our constant quest for innovation in products and services, our fiscal and marketing initiatives, introduction of new routes and consistent efforts to reduce operating and non-operating expenses. He further said that for the December quarter, its domestic traffic grew by 38% and 24% on international routes.