Indian Transport & Logistics

Jet Airways profits soar high on lower expenses

Jet Airways profits soar high on lower expenses
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May 27, 2016: Jet Airways reported a net profit of Rs 397.16 during the January-March quarter on the back of low fuel cost, almost flat aircraft rentals, substantial decrease in aircraft maintenance charges and higher passengers carried. The airline had reported a net loss of Rs 1,728.99 crore during the same period last year.

During the period, fuel expenses fell 25% at Rs 999 crore against Rs 1,334 crore in the year-ago period. Total income rose 3.6% at Rs 5245.3 crore compared to Rs 5,064 crore year-on-year. Other income in the period was at Rs 206 crore versus Rs 225 crore (y-o-y). The company’s Ebitda stood at Rs 815.9 crore from an Ebitda loss of Rs 340 crore (y-o-y). Aircraft and engine rentals grew by a meagre 1.46% y-o-y to Rs 544.72 crore during the quarter. Aircraft maintenance charges halved to Rs 345.7 crore.

On the back of significant increase in the total number of passenger carried, net sales increased by 4.66% y-o-y to Rs 4,842.30 crore. The dip in expenses and increase in passenger flown has managed to increase the Ebidtar (earnings before interest, tax, depreciation, amortization and rentals) by 593.31% y-o-y to Rs 1,360.56 compared to Rs 196.24 crore in the corresponding period last year.This is the fourth consecutive quarter in which Jet has reported a net profit.

Naresh Goyal, chairman, Jet Airways, said, “Jet Airways has been revitalised as a business in the last two years. Our focused efforts have resulted in significant improvement in operational performance leading to record profitability.” During the entire financial year, net profit stood at Rs 1211.65 crore against a loss of Rs 2097.41 crore in FY 15.

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