Jet Airways profit rises 10.5 in fourth quarter

Though fuel expenses rose sharply,higher traffic growth helped private carrier Jet Airways post a net profit increase of 10.5 per cent at Rs 58.60 crore for the March quarter of FY10....

Though fuel expenses rose sharply,higher traffic growth helped private carrier Jet Airways post a net profit increase of 10.5 per cent at Rs 58.60 crore for the March quarter of FY10 as against Rs 53 crore which it posted in the same period a year ago. Sales for the period grew 12 per cent at Rs 2,877 crore as against Rs 2,566.21 crore. During the quarter under review,Jet carried 3.24 million passengers,up 28 per cent against the same period a year ago.

Despite aircraft fuel expense going up 43 per cent at Rs 846 crore for the March quarter as against Rs 593 crore in the same period last year,the company has shown stellar performance during the quarter. Lease rentals also saw an upswing at Rs 215 crore as against Rs 206 crore. However,employee remuneration and benefits expense stood at Rs 306 crore as against Rs 333 crore. Analysts say that improvement in load factors drove a substantial spurt in profits at Jet,despite an increase of 8 per cent in expenses at Rs 2,594.71 crore as against Rs 2,402.24 crore. Jets shares were down 3 per cent on the BSE on Thursday to close at Rs 495.20.

For the year ended March 31 2010,the company has posted a 16 per cent higher net loss at Rs 467.64 crore as against Rs 402.34 crore. Sales have also declined 10 per cent at Rs 10,622.92 crore as against Rs 11,786.88 crore. Meanwhile,shares of the company closed the day at Rs 495.20,down 2.97 per cent on the Bombay Stock Exchange on Thursday.

The airline has said that the industry has been adversely affected in the recent past by the general economic slowdown. This coupled with weak Indian rupee and high fuel cost had significantly impacted the performance ad cash flows of the company resulting it erosion of the net worth,in the past. However,the management is continuously implementing initiatives directed toward improving operating profits through cost control,route rationalisation,leasing out aircraft and options of raising finances to meet its various short term and long term obligations.

Nikoss Kardassis,CEO at Jet said,The positive turnaround at Jet is a result of constant product innovation,stringent cost management,smart marketing and strong fiscal prudence,as well as commitment of staff. He said in the March quarter,domestic and international traffic at Jet grew by 26 per cent and 31,with the continued buoyancy in the domestic environment. The airline has maintained its leadership position with the highest market share of 25.8 in the March quarter.