Jet Airways flies into red zone with Rs268-crore quarterly loss
9 Feb 2014 4:39 AM IST
Jet Airways on Friday reported a net loss of Rs 267.89 crore for the three months ended December 2013 as the carrier was bogged down by rising expenses due to high fuel prices and the rupee’s depreciation.
The airline, which recently completed a 24 per cent stake sale to Abu Dhabi-based Etihad Airways, had registered a net profit of Rs 85 crore in the year-ago period. Total income from operations climbed to Rs 4,535.87 crore in the third quarter of the current financial year from Rs 4,205.77 crore in the same period a year ago, according to standalone figures in the company’s filing to the BSE. Jet Airways had reported a net loss of Rs 891.01 crore in the three months ended September 2013. In the latest quarter, total expenses jumped to Rs 4,762.08 crore from Rs 3,870.16 crore a year earlier.
‘Rupee depreciation, high fuel prices and increase in airport charges continued to impact costs in the current quarter,’ the carrier said in a separate statement. Fuel rates rose 10.6 per cent in the quarter from a year ago, it said. The loss narrowed from the September quarter on ‘improved passenger yields and sustained market share,’ Chief Financial Officer Ravishankar Gopalakrishnan said in the statement. The number of passengers grew 4 per cent in the quarter, while operating revenue rose 6 per cent to Rs 4,990.1 crore. The airline said the fourth quarter is expected to be muted on account of both yields and seat factors, which is a measure of occupancy.
Jet Airways stressed that the rupee’s depreciation against the dollar continues to be a cause of concern. It plans to replace high-cost debt with cheaper borrowings to reduce interest costs.
Following the stake purchase by Etihad, Jet’s debt came down to Rs 10,895.2 crore in the December quarter from Rs 12,494.7 crore in the three months ended September.
The airline, which recently completed a 24 per cent stake sale to Abu Dhabi-based Etihad Airways, had registered a net profit of Rs 85 crore in the year-ago period. Total income from operations climbed to Rs 4,535.87 crore in the third quarter of the current financial year from Rs 4,205.77 crore in the same period a year ago, according to standalone figures in the company’s filing to the BSE. Jet Airways had reported a net loss of Rs 891.01 crore in the three months ended September 2013. In the latest quarter, total expenses jumped to Rs 4,762.08 crore from Rs 3,870.16 crore a year earlier.
‘Rupee depreciation, high fuel prices and increase in airport charges continued to impact costs in the current quarter,’ the carrier said in a separate statement. Fuel rates rose 10.6 per cent in the quarter from a year ago, it said. The loss narrowed from the September quarter on ‘improved passenger yields and sustained market share,’ Chief Financial Officer Ravishankar Gopalakrishnan said in the statement. The number of passengers grew 4 per cent in the quarter, while operating revenue rose 6 per cent to Rs 4,990.1 crore. The airline said the fourth quarter is expected to be muted on account of both yields and seat factors, which is a measure of occupancy.
Jet Airways stressed that the rupee’s depreciation against the dollar continues to be a cause of concern. It plans to replace high-cost debt with cheaper borrowings to reduce interest costs.
Following the stake purchase by Etihad, Jet’s debt came down to Rs 10,895.2 crore in the December quarter from Rs 12,494.7 crore in the three months ended September.
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