Jet Airways' profit rises fourfold

New Delhi: In a surprise move, a changed accounting practice enabled India's largest private airline Jet Airways to post a Q1 profit of Rs 143 crore in this fiscal- a fourfold jump from Rs 30 crore in the same period last year.
Since jet fuel prices have skyrocketed from this April, all airlines are bleeding heavily with the figure being as high as Rs 10 crore losses daily for big players and Q1 was expected to see huge losses.
However, Jet said it changed its accounting policy during this quarter for charging depreciation on narrow body aircraft used for domestic operations from written down value to straight line, similar to the practice for its bigger planes used on international routes.
"The impact on account of this change in method was about Rs 916 crore for the quarter at the company level," the airline said. The changed accounting practice has clearly helped avert posting a loss.
The airline's low cost subsidiary, JetLite, has reported a loss of Rs 134.80 crore for Q1 this fiscal against Rs 107 crore same period last year. Given the high fuel cost, the Indian aviation industry expects to lose anywhere up to Rs 10,000 crore this fiscal.
30/07/08 Times of India

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Categories: Jet Airways Jul 2008