Thursday, November 8, 2012

Jet Air's Q2 loss shrinks to Rs 100 cr on forex gain


Jet Airways' September quarter loss narrowed down to Rs 100 crore, from Rs 713.6 crore, year-on-year mainly on forex gain of Rs 69.6 crore. The company has reported a forex loss of Rs 276 in the corresponding quarter last year. The airline's income from operations rose 20%, YoY to Rs 3,755.3 crore.


The company's EBITDA margins stood at Rs 14.6%, versus 4%, YoY.


Shares of the company rose over a percent to Rs 354.30 post the earnings announcement.


Following are the factors that impacted Jet Air's overall performance during Q2.


Lean season, economic slowdown and consequential dip in industry passenger traffic coupled with high fuel prices and rupee depreciation via-a-via the US dollar has affected the overall results, the company said in a filing to the exchanges. "Fuel rates increased around 17%, Yoyo, a portion of this was passed on to the passengers in the form of increase in fuel surcharge during the quarter,” said the company.


There were instances of aircraft on ground, as certain routes were discontinued during the quarter; the impact of this is approximately USD 6 million. These aircraft will be leased out in the next few months, it said..


Going forward...


The airline remains positive that as the peak season ahead will help the airline to improve yields further. "The forward bookings trends for the quarter are quite encouraging. Our focus remains to discontinue loss making routes and selectively introduce additional flights/ new flights on the sectors contributing to the bottom line. In this ensuing peak season more of business class seats will be on offer," said the company. 


The company also asserted that it is taking various steps to control costs, remove loss-making routes from the network and will focus more on increasing ancillary revenues.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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