Says Jet Airways chief executive officer, Wolfgang Prock-Schaeur, We posted profits mainly due to the appreciation of the rupee since we pay our staff in dollars. Secondly, our yields per passenger improved by 6%. Our operating costs also came down in this quarter due to the usage of wide-bodied aircraft.
Adds Prock-Schaeur, Domestic operations accounted for 76% of operating revenues compared with 87% in the first quarter last year, reflecting the growing scale and contribution of international operations.
He also said that the profits would have been almost Rs 60 crore this quarter, had Jet not spent $12 million on advertisements of wide bodied aircraft which they have ordered. However, he said that the company is expected to break even by the third quarter and the result of Jetlite and Jet Airways would be combined.
However, the next two quarters will remain challenging for the airline because of the large-scale fleet expansion that it has undertaken, particularly on international operations.
Jet had a foreign currency gain of $31 million in the first quarter because of the appreciation of the rupee against the dollar.
The Jet Airways stock plunged 3.15% on the Bombay Stock Exchange on Monday, to close at Rs 700. Jet, which bought Sahara Airlines Ltd in April in the nation's biggest aviation takeover, cut prices to compete with four budget carriers that started flights in the past four years.
The airline, controlled by billionaire Naresh Goyal, needs to earn a profit to fund the purchase of new planes and expand services to North America and Europe. The airline has as much as $800 million of overseas loans.