Jet Airways (India) Ltd has posted a consolidated net loss of Rs 354 crore in the fourth quarter of fiscal year 2011-12, compared with a loss of Rs 200 crore in the same period last year. For 2011-12, Jet Airways’ consolidated loss stood at Rs 1,420 crore, against a Rs 85-crore loss in the year before, the company said in a statement yesterday.
The company said fuel costs jumped 42 per cent year-on-year in the March quarter. While the 24 per cent jump in revenue during the quarter was in the line with analysts’ expectations, the bottom line performance was better than estimations. Traditionally, the fourth quarter is a weak season for airlines and travel companies. However, Jet Airways registered significant passenger, revenue and yield growth in the quarter, as Kingfisher Airlines curtailed its domestic services to around 100 flights from 400 six months ago. Load factors were up 510 basis points year-on-year to 83 per cent. To reach break-even, the company needed load factors of 91 per cent. Yields grew 9.6 per cent year-on-year on a standalone basis. Both Jet Airways and its subsidiary JetLite (now renamed as Jet Konnect) registered revenue growth of around 24 per cent to Rs 4,638 crore in the March quarter, compared with Rs 3,729 crore in the year-ago quarter. The growth was aided by fare increases and a sharp jump in load factors. “Rupee depreciation and fuel prices have impacted the quarterly results. However, capacity reduction in the industry has helped raise fares and improve yields,” said Nikos Kardassis, Chief Executive Officer, Jet Airways. The company also said it would discontinue loss-making routes. Capacity reduction in the industry has helped domestic airlines increase fares and improve yields. The full impact of the same would be felt in the current quarter. “We have not seen any adverse effect on passenger traffic flow. Rupee depreciation and crude oil prices continue to be a cause of concern, as per a report by Mint. This, coupled with a sluggish economy, could impact traffic growth to some extent in the short to medium term, as the discretionary spending on travel could get affected,” the airline said. The airline also told its investors that it appointed a valuer to assess exposure in JetLite, whose performance had been affected due to high operating costs. The unit continues to have a negative net worth. Jet Airways has total investment of around Rs 1,645 crore in JetLite in the form of equity and preference shares. The valuer has recommended that no impairment in exposure is required.
Click here to see the original article>The company said fuel costs jumped 42 per cent year-on-year in the March quarter. While the 24 per cent jump in revenue during the quarter was in the line with analysts’ expectations, the bottom line performance was better than estimations. Traditionally, the fourth quarter is a weak season for airlines and travel companies. However, Jet Airways registered significant passenger, revenue and yield growth in the quarter, as Kingfisher Airlines curtailed its domestic services to around 100 flights from 400 six months ago. Load factors were up 510 basis points year-on-year to 83 per cent. To reach break-even, the company needed load factors of 91 per cent. Yields grew 9.6 per cent year-on-year on a standalone basis. Both Jet Airways and its subsidiary JetLite (now renamed as Jet Konnect) registered revenue growth of around 24 per cent to Rs 4,638 crore in the March quarter, compared with Rs 3,729 crore in the year-ago quarter. The growth was aided by fare increases and a sharp jump in load factors. “Rupee depreciation and fuel prices have impacted the quarterly results. However, capacity reduction in the industry has helped raise fares and improve yields,” said Nikos Kardassis, Chief Executive Officer, Jet Airways. The company also said it would discontinue loss-making routes. Capacity reduction in the industry has helped domestic airlines increase fares and improve yields. The full impact of the same would be felt in the current quarter. “We have not seen any adverse effect on passenger traffic flow. Rupee depreciation and crude oil prices continue to be a cause of concern, as per a report by Mint. This, coupled with a sluggish economy, could impact traffic growth to some extent in the short to medium term, as the discretionary spending on travel could get affected,” the airline said. The airline also told its investors that it appointed a valuer to assess exposure in JetLite, whose performance had been affected due to high operating costs. The unit continues to have a negative net worth. Jet Airways has total investment of around Rs 1,645 crore in JetLite in the form of equity and preference shares. The valuer has recommended that no impairment in exposure is required.