The country’s second-largest airline by market share, Jet Airways, on Friday reported a loss of Rs 1,729 crore for the March quarter.
The country’s second-largest airline by market share, Jet Airways, on Friday reported a loss of Rs 1,729 crore for the March quarter, down from Rs 2,154 crore in the same period of the previous year, on the back of an impairment charge on its investment in subsidiary JetLite.
Despite benefiting from a steep fall in fuel prices during the last three-four quarters, Jet Airways’ losses could be partly attributed to an impairment charge of Rs 1,172 crore for the quarter, up from Rs 700 crore in the corresponding period of the previous year.
The Naresh Goyal-controlled airline, however, saw its net revenues increase 10.91% year-on-year (y-o-y) to Rs 5,064.52 crore during the March quarter.
Expenses fell to Rs 5,595.64 crore during the quarter from Rs 5,932.21 crore a year ago. Fuel expenses fell to Rs 1,334.47 crore from 1906.39 crore during the same period.
“FY15 was an encouraging year when we set out to change the fundamentals of this business, allowing us to deliver a significant improvement in our net result. This demonstrates unequivocally that the three-year turnaround plan we put in place last year is on track,” Jet Airways’s chairman Naresh Goyal said. “While the Indian aviation market is still subject to ongoing structural challenges and robust competition is placing pressure on yields, we will continue to progress by focusing on delivering an enhanced experience for our guests and improving efficiency throughout the business,”he added.
On a yearly basis, the airline halved its losses to Rs 2,097.41 crore during FY15. During the same period, the carrier’s revenues increased by 10% to Rs 20, 965.60 crore.
Jet Airways, in which Abu Dhabi-based Etihad Airways PJSC has a 24% stake, has announced a cost-cutting plan and expects to make a full-year profit in 2017.
The airline has not made an annual profit since 2007, as tough competition and high operating costs in the aviation industry make it difficult to turn a profit.
“We have made significant progress on all key fronts of the business, and achieved substantial growth in all of our major key performance indicators in a turbulent and competitive business environment,” Jet Airway’s chief executive Cramer Ball said.
On the operational front, the number of passengers carried by the airline increased by 9.6% to 22.5 million passengers in FY15 from 20.5 million in FY14. During the same period, the seat load factor of the airline increased by 4.7 percentage points to 82.3% in FY15 from 77.6% in FY14.