Jet net flies on change in depreciation arithmetic

Mumbai: A change in the method of calculating depreciation has allowed Jet Airways to show a profit of around Rs 143.38 crore for the first quarter ended June 30, 2009.
But operating losses stood at nearly Rs 562 crore, primarily due to a surge in fuel expenditure.
A piece of good news for India’s top private airline would be that the losses will reduce because crude prices fell another $4 to $121 levels in early US trade on Tuesday. In the last two weeks, they have fallen 15% from their peak of $147.
Jet said the current quarter (Q2) is traditionally a low season but the reduction in capacities and the increases in fares/surcharges will improve the situation to a large extent, apart from the fall in crude.
Jet changed the depreciation calculus on its narrow-body aircraft fleet from the written down value method to the straight line method with retrospective effect.
30/07/08 Nirmal John/Daily News & Analysis

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Categories: Jet Airways Jul 2008