After 5 quarters in the red, Jet flies into Rs 36-cr profit
After being in the red for five consecutive quarters, India’s largest airline by marketshare Jet Airways on Friday reported a consolidated net profit of Rs 36 crore during the April-June quarter. HT reports.india Updated: Aug 04, 2012 02:39 IST
After being in the red for five consecutive quarters, India’s largest airline by marketshare Jet Airways on Friday reported a consolidated net profit of Rs 36 crore during the April-June quarter against a loss of Rs 129 crore in the year-ago period on the back of increased airfares and cost management.
On a standalone basis, the airline reported a net profit of Rs 25 crore during the quarter against a loss of Rs 123 crore a year ago.
The Naresh Goyal-led airline 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 69 crore.
“The reduction in seats by Air India and Kingfisher Airlines during the peak summer season allowed other airlines to price tickets above costs for the first time after so many quarters. This factor along with route rationalisation, overheads reduction, sale-and-lease back options have allowed Jet to post quarterly profits,” said Amber Dubey, partner and head, aviation, KPMG.
Net sales surged 30% at Rs 4,587 crore in the quarter.
“While this is surely a reason to cheer, the real challenge for all airlines will be the lean July-September quarter,” said Dubey. “If airlines can manage their costs well and the ministry brings in reforms, the winter quarter (October-December) could bring in more good news.”
The airline increased fares by about 12% during the quarter.
“Fuel cost rise and depreciation of the rupee vis-à-vis the US dollar weighed on the industry’s profitability,” said Nikos Kardassis, chief executive officer, Jet.