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Fuel costs land Jet in a net loss

india Updated: Jul 22, 2011 20:46 IST
HT Correspondent

India’s biggest airline by marketshare Jet Airways on Friday reported a net loss of Rs 123.2 crore during the quarter ended June against a net profit of Rs 3.5 crore in the same period a year-ago, mainly due to high fuel costs.

The airline spent Rs 1,564.0 crore during the April-June period compared to Rs 996.0 crore a year-ago, the company said. Hence, the EBITDAR (earnings before interest, taxes, depreciation, amortisation and rent costs) margin fell to 9.3% in the current quarter against 20.4% a year-ago.

“Fuel rates increased by 39% since 2010 and 12% from the fourth quarter of the last fiscal year,” the company said. Costs would be reduced by about 3% if fuel expenses were not accounted for, it added.

The airline, however, witnessed higher passenger traffic during the quarter under review. Jet’s revenue for the quarter increased by 18.5% to Rs 3,582.0 crore in the first quarter from Rs 3,023.0 crore in the corresponding period of the previous fiscal year.

“We carried a record of 2 million passengers in May in different segments through Jet Airways, Jet Airways Konnect, and JetLite. Our on-time performance and service delivery has also improved over last few months,” said Nikos Kardassis, CEO, Jet Airways.

The airline expects a “muted” growth at the domestic front in the next few months as pricing pressure continue affecting yields of the company.