Jet back in black after 5 quarters
4 Aug 2012 6:40 AM IST
After being in red for five quarters in a row, Jet Airways Group flew back into the positive terrain with a net income of Rs 36.4 crore in the June quarter on the back of higher yields and cost management.
The country's largest airline had posted a net loss of Rs 123.2 crore in the same period last year.
Jet Airways on Friday said the profit would have been much higher had it not been for the huge forex losses on account of the falling rupee which resulted in an outgo of Rs 170.3 crore.
However, a 148 per cent jump in Ebitdar (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) to Rs 825.5 crore against Rs 333 crore a year ago, cushioned the impact of forex loss.
This also saw its Ebitdar margin nearly double to 16.1 per cent from 8.9 per cent. The consolidated group revenue grew by 31.4 per cent to Rs 5,274.8 crore during the period driven by a 10 per cent growth in domestic traffic, while the industry growth was a paltry 1 per cent during the quarter.
Commenting on the turnaround, Group chief executive Nikos Kardassis said, ‘Fuel cost increase and depreciation of the rupee against the dollar weighed heavily on the industry's profitability. In fact, ATF price rose by 13 per cent in the quarter y-o-y, against a rise of just 3 per cent in the previous quarter. Overall the fuel cost rose 25.8 per cent to Rs 1,967.4 crore from Rs 1,563.7 crore.’
The country's largest airline had posted a net loss of Rs 123.2 crore in the same period last year.
Jet Airways on Friday said the profit would have been much higher had it not been for the huge forex losses on account of the falling rupee which resulted in an outgo of Rs 170.3 crore.
However, a 148 per cent jump in Ebitdar (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) to Rs 825.5 crore against Rs 333 crore a year ago, cushioned the impact of forex loss.
This also saw its Ebitdar margin nearly double to 16.1 per cent from 8.9 per cent. The consolidated group revenue grew by 31.4 per cent to Rs 5,274.8 crore during the period driven by a 10 per cent growth in domestic traffic, while the industry growth was a paltry 1 per cent during the quarter.
Commenting on the turnaround, Group chief executive Nikos Kardassis said, ‘Fuel cost increase and depreciation of the rupee against the dollar weighed heavily on the industry's profitability. In fact, ATF price rose by 13 per cent in the quarter y-o-y, against a rise of just 3 per cent in the previous quarter. Overall the fuel cost rose 25.8 per cent to Rs 1,967.4 crore from Rs 1,563.7 crore.’
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