A one-time gain helped Jet Airways (India) Ltd turn in a profit in a quarter where it otherwise would have reported a quarterly loss of Rs772.49 crore, the airline’s biggest ever quarterly loss since going public in 2005.
Billionaire Naresh Goyal-controlled Jet reported a net profit of Rs143.38 core in the April-June quarter, helped by a one-time Rs915.87 crore reversal of depreciation payout made in the previous quarters. The airline had a profit of Rs30.90 crore in the April-June quarter last year.
Little reason to smile: Jet Airways chairman Naresh Goyal.
Its low-fare subsidary JetLite (India) Ltd reported a Rs1,34.8 crore loss for the quarter compared with a Rs1,06.90 crore loss last year.
Record high aviation fuel prices, which today are some three times of those prevailing in 2005, and mounting expenses at Jet Airways' expanding international division, are eroding profits.
Jet’s previous highest quarterly loss was Rs221.18 crore in the quarter ended March. Those numbers didn’t include operations at JetLite.
Sales at Jet rose to Rs2,867.16 crore in the quarter gone by from Rs1,806.70 crore in the year-ago period, largely because of new and rising international revenues. Fuel expenses rose from Rs599.56 crore in the year-ago quarter to Rs1,539.23 crore this quarter, partly reflecting an increase in its fleet size, which now stands at 85 aircraft from 62 in the year-ago quarter. Jet, with 526 daily flights, saw its headcount increase from 10,820 to 12,777.
Jet shares fell 1.8% on the Bombay Stock Exchange on Tuesday.