Jet Airway's net loss in Q1 Rs.355 crore

Mumbai, Aug 8 (IANS) Jet Airways Thursday reported a net loss of Rs.355.38 crore in the first quarter of the current fiscal from a net profit of Rs.24.70 crore in the same period of 2012-13.

"The devaluation of rupee versus dollar, steep increase in landing and navigation charges at key metros and high fuel prices has impacted the industry's profitability," Captain Hameed Ali, the airline's acting chief executive, said in a statement.

"This (sluggish demand) coupled with the airline's inability to pass on high input costs fully to the passengers, have caused financial strain on airlines. Going forward, we expect the demand scenario to improve in second half of the fiscal."

The company's total income in the period under review decreased by 13.73 percent to Rs.4,064.3 crore, from Rs.4,711.6 crore in the corresponding quarter of last fiscal.

However, the company's fuel cost in the first quarter decreased by 21.55 percent and stood at Rs.1,543.39 crore from Rs.1,967.41 crore in the corresponding period of 2012-2013.

While, the aircraft rentals in the quarter under review went up by 31.90 percent at Rs.363.48 crore from Rs.275.57 crore in the like period of last fiscal.

The company's domestic operations accounted for 43 percent of total revenues and garnered Rs.1,763.5 crore. The earnings from international operations accounted for 57 percent of total revenues of Rs.2,300.9 crore.

The company is currently looking forward to attract foreign investments from Abu Dhabi-based Etihad Airways through a stake sale deal.

The Foreign Investment Promotion Board (FIPB) last month cleared the proposed stake sale in Jet Airways. A final decision on this is now pending with the cabinet.

The deal is expected to garner around Rs.2,058 crore ($379 million) for Jet Airways, which will enable the company to service its debts and provide passengers better connectivity.

"The proposed equity infusion by Etihad Airways will significantly change the landscape of the business not only in terms of deleveraging the balance sheet but also reduction in costs due to better bargaining ability as well as higher revenues due to improved connectivity and network reach," Ali added.

The company's scrip at the Bombay Stock Exchange (BSE) closed higher by 1.90 points and 0.59 percent at Rs.325.60 per share from its previous close of Rs.325.60 after the company announced positive demand outlook for the second half of the fiscal.


Get stories like this on the Yahoo app and discover more every day.
Download it now.