Jet Airways' March quarter loss widened to Rs 298 crore
from Rs 124 last year, as a weak rupee further pushed up the fuel bill, and
neutralized the 24% growth in revenues
While aviation fuel cost surged 26% to Rs 307.7 crore, YoY,
the Rupee also depreciated over 14% to Rs 50.8 against the dollar. The company
incurs 60% of its expenses in dollar denomination.
The company said its revenues grew 24% to Rs 4092.7 crore
due to improved seat factors of 79%.
Going ahead, a weak rupee and expensive fuel cost
remain a cause of concern. This coupled with sluggish economy could impact
traffic growth to some extend in the short to medium term as the discretionary
spending on travel could get affected.
However, the airline says it is fine tuning its business
strategies to control costs. "We have taken various initiatives to improve
our operating efficiency and revenue earning potential. Other initiatives such
as enhancing ancillary revenues, discontinuing loss making routes, sale of
aircraft, restructuring commissions being paid to the agents are few to be
named. We believe that these initiatives will help us in medium to long
term," says the airline's CEO Nikos Kardassis.
Before the result announcement, the company stock closed the day at Rs 321.20, down 0.23%.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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