Jet Airways flies into profit after five quarters
04 August 2012
Jet Airways, India's biggest airline, posted a profit for the quarter ended 30 June 2012, after posting five successive quarters of losses, on higher passenger revenues. Higher yields and cost management also helped in improving profits, even though forex losses had an impact.
The carrier, promoted by industrialist Naresh Goyal, posted a net profit of Rs24.7 crore on a standalone basis during the quarter, compared with a net loss of Rs123.2 crore in the same period last year. Its revenue rose about 31 per cent to Rs4,711 crore from about Rs3,582 crore a year ago.
Budget carrier SpiceJet Ltd, promoted by media czar Kalanithi Maran, also posted a net profit in the first quarter ended June, after a spell of five consecutive quarterly losses, with the carrier reporting a net profit of Rs 56.15 crore for the quarter. (See: SpiceJet swings to profit in Q1).
In a statement, the airline said that the net profit would have been much higher had it not been for the huge forex losses on account of the falling rupee which resulted in an outgo of Rs 170.3 crore.
A 148 per cent jump in earnings before interest, taxes, depreciation, amortisation (EBITDA) of Rs825.5 crore against Rs333 crore a year ago helped in cushioning the impact.
Its EBITDA margin nearly doubled to 16.1 per cent from 8.9 per cent.