Jet Airways Q2 profit slumps 91% to Rs50 crore on higher fuel expenses
New Delhi: Jet Airways (India) Ltd said its standalone profit fell 91% to Rs49.63 crore in Q2 from Rs549.02 crore a year earlier, because of weak demand from the Middle East, lower airfares and higher fuel prices.
Revenue fell 0.25% to Rs5,758.18 crore in the quarter from a year earlier, while expenses rose 9.28% to Rs5,708.55 crore, the airline said on Thursday.
“The weak demand in the Gulf continues, whilst low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices,” Jet Airways chief executive Vinay Dube said in a statement.
After a board meeting, the airline said it had appointed Kevin Knight to its board as a nominee of Etihad Airways, which has a stake in the airline.
Two listed airlines have seen their profits jump in the September quarter.
SpiceJet Ltd’s profit rose 79% to Rs105.3 crore in the quarter ended 30 September from Rs58.9 crore in the year earlier. Revenue increased 30% to Rs1,838.69 crore from Rs1,415.83 crore. Expenses rose 28% to Rs1,734.1 crore.
InterGlobe Aviation Ltd, which runs IndiGo, saw profit grow almost fourfold to Rs551.55 crore from Rs139.85 crore a year earlier. Total revenue rose 27.2% to Rs5,505.56 crore from Rs4,166.93 crore.
The Jet Airways stock rose 2.04% on BSE on Thursday to close at Rs696.75, while the benchmark Sensex gained 1.08% to close at 32,949.21 points. The airline reported its second-quarter earnings after market hours.
IndiGo shares fell 0.95% to Rs1,125.40, while SpiceJet’s dropped 1.12% to Rs140.75.
- Bengaluru FC’s dominance of ISL reveals flaws in the league’s format
- Fleeing billionaires push India to ring-fence alleged defaulters
- Gender inequality
- H-1B application process to begin from 2 April, premium processing suspended
- Opening bell: Asian markets flat, Goldman Sachs cuts GDP forecast, HAL, IndiGo, SBI in news