The country's largest private sector carrier, Jet Airways, on Friday reported 69.52% y-o-y decrease in its standalone net profit at Rs 142.38 crore during the October-December quarter as revenues remained stagnant and fuel and other expenses shot up.
The country’s largest private sector carrier, Jet Airways, on Friday reported 69.52% y-o-y decrease in its standalone net profit at Rs 142.38 crore during the October-December quarter as revenues remained stagnant and fuel and other expenses shot up.
The revenues of the airline increased just 0.63% y-o-y to Rs 5478.07 crore due to demonetisation which resulted in decline in foreign travel, leading to a marginal decline in international revenue at Rs v3066.32 crore. Normally, international revenue always sees an increase.
Fuel cost which constitutes almost half of an airlines’ operating cost increased by 15.67% y-o-y to Rs 1,428.59 crore. The airline did not increase its fleet size during the quarter as a result of which aircraft rentals and maintenance cost did not increase much.
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The other expenses during the quarter increased by 11.78% y-o-y to Rs 1,353.74 crore due to foreign currency fluctuation. As a consequence the operating profit or EBITDAR decreased by 41% y-o-y to Rs 724.17 crore as opposed to Rs 1,227.39 crore in the year ago period.
“In spite of the continuing downward pressure on yields caused by aggressive capacity addition in the industry as well as weaker international aviation markets, we have achieved positive results through our relentless effort to reduce net debt by almost 0.5billion dollars in the past two years,”said Naresh Goyal, chairman, Jet Airways.
The overall codeshare traffic grew at 7% in the quarter. At a group level Jet Airways reported 1.4% y-o-y total revenue of R5,784 cr for the quarter compared to R5,702 cr. The airline reduced its net debt by Rs 1,001 cr during this quarter and R1,435 cr during the first nine months of the year.
“We are impressed to note and happy to support the continued trend of progressive developments at Jet Airways, despite the highly competitive and challenging aviation business environment in India as well as in the Gulf, which is another of Jet Airways’ core markets,” said James Hogan, president and CEO, Etihad Aviation Group.