Jet Q3 loss widens to Rs 214 crore

Mumbai: Hit by high expenditure on aviation turbine fuel (ATF), operating costs and lower load factors, Naresh Goyal-promoted Jet Airways has incurred net loss of Rs 214 crore in the December quarter, compared to Rs 91 crore in a year-ago period.
Wolfgang Prock-Schauer, CEO, Jet Airways told, ET : “The ATF prices have stabilised and little volatility in fuel will not impact much to the company going forward.” ATF accounts for 45% of the operating cost of carriers, which are expected to post a combined loss of $2 billion for fiscal 2009.
An analyst with a domestic brokerage firm, however, thought otherwise. He said the global recession has impacted travel patterns and will continue to affect the airline industry across the globe over the next few quarters.
Total income of the country’s largest private carrier rose 24.6% to Rs 3,022 crore during the quarter under review. Bottomline was also impacted by a steep increase in interest cost that rose to Rs 104 crore in the December quarter from Rs 70 crore a year ago. On a y-o-y basis, the company’s fuel expenses increased from Rs 917 crore in December 2007 to Rs 1,094 crore in December 2008.
Jet reported a stable performance on operational front with EBITDA margin of 12.6% in the domestic market despite fall in passenger volumes. Average gross revenue per passenger was up by 23%.
Its market share declined to 26% in December quarter from 32.7% in September quarter. Passenger volumes on its domestic routes declined by 31% yoy. The company has reported load factor of 66.2%, better than the industry average of 60%.
17/01/09 Economic Times

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Categories: Jet Airways Jan 2009