Analysts were expecting Jet to have a muted performance and some analyst were expecting the airline to post a modest profit of around Rs 30 crore, but Jet has grossly underperformed.
Margin pressures, weakening rupee and escalating fuel costs crimped Jet’s profitability as the country’s second largest carrier posted a huge loss of Rs 1,040 crore for the fourth quarter of 2017-18 as against a profit of Rs 583 crore in the corresponding quarter last year. For the quarter, Jet Airways reported an EBITDAR of `142 crore versus an EBITDAR of Rs 934 crore in Q4FY17, a whopping 85% decline.
Analysts were expecting Jet to have a muted performance and some analyst were expecting the airline to post a modest profit of around Rs 30 crore, but Jet has grossly underperformed. “It is expected that the airline will continue to perform below the industry growth on count of Jet losing market share in the domestic market and in terms of an overall growth it has lagged behind and currency and fuel costs both will result in weakening yield,” said an aviation analyst.
- Tejas Express train between Delhi and Dehradun! Indian Railways to launch swanky new train soon; details
- Flyers take note! Delhi IGI airport to install full-body scanners; trials to be completed soon
- Delhi-Meerut RRTS: 160 kmph train sets coming soon! Bids for world-class coaches invited under 'Make in India'
Annually too the airline reported a net loss of Rs 636 crore for FY18 versus a profit of `1,499 crore in FY17 For the full year, an EBITDAR of Rs 3,148 crore versus an EBITDAR of Rs 4,477 crore in FY17. which would have been Rs 438 crore in FY17 without the IND AS adjustment aggregating to Rs 1,061 crore.
Jet attributed this poor show to year-on-year impact of increase in fuel prices of `366 crores, mark-to-market adjustment due to weaker Rupee of Rs 156 crore in Q4 FY18 vs Rs 54 crore gain in Q4 FY17 and one-time maintenance charge of Rs 253 crore.
Despite these challenges, in Q4FY18, Jet Airways said it increased its capacity by over 10%, increased passenger load factor by 3.9% points, reported a positive year-over-year passenger and cargo RASK, reduced net debt(excluding debt taken for BKC property) by `359 crore and achieved a year-over-year reduction in non-fuel CASK of 1.1%.