Jet Airways revenue up, but costs are higher: Quarter Four results

Mumbai: Reporting its October to December 2008 Quarter results, Jet Airways in a release stated that while revenue was up, costs were up even more, therefore resulting in the airline reporting a Rs 2.1 billion (USD 42.9 million) loss. For its third financial quarter, Jet Airways reported a revenue jump of nearly 22 per cent to Rs 30.6 billion, but operating expenses lifted dramatically by 40 per cent to Rs 9.2 billion. “The domestic industry capacity will be flat for the next few quarters and with the increase in traffic over the next few months, we believe that the industry seat factors will trend up,” said Jet Airways in a statement.
“The incremental traffic, though, will be at lower yields. We have eliminated our highest loss making routes from the International network and have right sized our capacities on the North America routes,” added the statement. Jet Airways reports that its system wide seat factor in the December 2008 ending quarter dropped to 66.2 per cent from 69.1 per cent achieved in 2007. The majority of this was due to domestic service where the load factor dropped to 62.4 per cent, down from 2007’s 72.3 per cent. Internationally, load factors were up 1.4 per cent to 67.8 per cent. Jet Airways also adds that international revenues from international operations now account for 54.3 per cent of operating revenues.
31/01/09 TravelBizMonitor

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Categories: Jet Airways Feb 2009