Friday, November 11, 2016

Jet Airways sells 3 A330 planes, posts modest profit of Rs 85 crore

Mumbai: Jet Airways posted a muted profit growth in Q2 FY 17 on account of provisioning for potential loss on sale of its three Airbus A330 aircraft. While revenue grew 3.2% to Rs 5,682 crore and the airline's fuel cost dipped, consolidated profit grew 2.4% to Rs 85 crore on a year-on-year basis. In Q2 FY16, the airline made consolidated profit of Rs 83 crore.

Sources said Jet Airways has entered into a sale agreement to sell three of its A330-200 planes currently on lease with Turkish Airlines to a lessor. The airline said it had made a provision of Rs 129 crore for potential loss from sale, it said in notes to the profit and loss account.

Jet Airways board approved the airline's Q2 result on Friday. Interestingly, both representatives of Etihad Airways - its CEO James Hogan (who is vice chairman of Jet) and CFO James Rigney did not attend the meeting. "They were travelling in Europe and hence could not attend," an airline executive said. Etihad has 24% stake in Jet Airways.

An airline spokesperson did not immediately respond to an email query.

The airline said it was improving its fleet utilisation and network and had lowered net debt by Rs 252 crore in second quarter FY 17.
11/11/16 Aneesh Phadnis/Business Standard

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