Naresh Goyal-owned Jet Airways has reported a net loss of Rs 225 crore for the first quarter ended June 30, 2009 against a net profit of Rs 143 crore in the same quarter last year.
However, its low-cost subsidiary JetLite has, for the first time, broken even with a net profit of Rs 2 crore against a net loss of Rs 135 crore in the same period last year.
“Last year’s first quarter results included exceptional items of Rs 916 crore on account of a change in the depreciation policy and without that benefit we reported an operating loss of Rs 700 crore. Considering this the Rs 225 crore net loss in this quarter is in fact a marked improvement. And this is due to a slew of cost cutting measures we had undertaken,” said KG Vishwanath, vice-president, commercial strategy & investor relations, Jet Airways.
Jet Airways said the low fare offering due to over capacity led to a decline in average yields and domestic operations
also contributed to the loss. The airline reported a pre-tax loss of Rs 148 crore in domestic operations while its
international operations showed a pre-tax loss of Rs 77 crore.
“Our performance is comparatively the best in the Indian market with improving operating margins. Despite such difficult circumstances, the company has achieved an EBITDAR margin of 16.5 per cent in Q1 FY10 compared to -8.4 per cent in Q1 FY09. This suggests that operationally the performance has stabilised and the impact of initiatives like rationalisation of capacity and cost- reduction programme have begun to show results,” Vishwanath said.
Corporate and business class traffic witnessed a slowdown. For the quarter as a whole, traffic fell 5 per cent. Fuel prices increased 8.2 per cent as compared to the January-March quarter, leading to an additional cost impact of Rs 43.5 crore.
JetLite has shown operational improvement during this quarter. The overall seat factor has been 74 per cent and yields have improved, which resulted in EBITDAR margins of 20 per cent versus a negative EBITDAR margin of 27 per cent for the same period last year. These results include a forex gain of Rs 20 crore.