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Jet Airways posts Q1 profit on higher traffic, lower costs

Jet Airways posts Q1 profit on higher traffic, lower costs
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First Published: Fri, Jul 23 2010. 05 28 PM IST
Updated: Fri, Jul 23 2010. 05 28 PM IST
Mumbai: Jet Airways (India) Ltd, India’s top private carrier by sales, on Friday reported a profit in the June-quarter from a year-ago loss, helped by higher revenue on improving air traffic and lower depreciation costs.
It earned a net profit of Rs3.52 crore from a loss of Rs225 crore a year ago.
Total income rose to Rs2,965 crore from Rs2,398 crore. A Reuters poll of brokerages expected Rs666 million loss on net sales of Rs3,040 crore.
“The continued resurgence in the domestic travel industry and sustained high levels of seat factors achieved in the international operations,” benefited the quarter ended 30 June, Jet Airways said in a statement.
The industry traffic grew 23% in the first quarter on year. Domestic traffic grew 39.1% for the quarter, Jet said.
Jet’s international operations, which account for 56% of total revenues, recorded seat factors of over 80% in the quarter, it said.
Analysts said profits were also boosted by a reversal of depreciation costs as Jet changed its policy of providing depreciation on its simulators, resulting in a one-time gain of Rs53.9 crore.
“They have booked a good profit from the depreciation reversal as they changed their policy,” an analyst said.
The charge to profit and loss account due to depreciation for the quarter was lower by Rs1.53 crore, Jet Airways said.
The quarter was hit on account of the closure of airports in Europe in April and May due to a cloud of volcanic ash from an eruption in Iceland. This resulted in a revenue loss and other costs of Rs33.4 crore for Jet, it said.
Ahead of the results, Jet Airways shares closed down 2.26% at Rs614.1 in a Mumbai market that closed up 0.1%.
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First Published: Fri, Jul 23 2010. 05 28 PM IST