Jet Air back in cruise mode, posts Rs3.5 crore profit
24 Jul 2010
Jet Airways, India's largest airline in terms of market share, continues to recover well from last year's downturn. The Naresh Goyal-led company recorded a net profit of Rs3.5 crore in the June quarter, against a net loss of Rs225.33 in the year-ago period. Revenue rose by 25 per cent to Rs2,965 crore.
"The airline has seen nine straight months of robust growth," Nikos Kardassis, chief executive of Jet Airways, said in a statement. He attributed the performance to an improvement in global business and leisure travel, improved on-time performance, and strategic marketing initiatives implemented during the previous quarters.
"This growth has been achieved through integration in operational efficiencies, effective network planning, strategic code shares, distinctive marketing initiatives and improved reliability," Kardassis added.
Income rose 23.6 per cent to Rs2,965.01 crore, compared to Rs 2,398.15 crore in the same period last year. Expenditure went up to Rs2,789.10 crore from Rs2,435.73 crore, a rise of 14.50 per cent. The expenditure shot up due to a 56.22 per cent rise in fuel expenses at Rs995.92 crore, compared to Rs637.49 crore during the same quarter last year.
Earnings before income, taxes, depreciation, amortisation and rent (EBITDAR) also increased by 42 per cent to Rs703.40 crore in the quarter from Rs496.30 crore for the same period last year due to various cost-efficiencies achieved over the last few quarters, the company said.
However, the airline's debt still remains a cause for concern. As of May, Jet had a debt of about Rs14,000 crore, of which aircraft-related dollar-denominated debt was estimated to be about Rs10,000 crore. The airline has to repay Rs1,000 crore annually for the next three years. The interest and finance charges of the carrier were Rs.274.47 crore for the quarter.
