Impacted by rupee depreciation, high fuel and airport charges Jet Airways (India) has reported a net loss of Rs.355 crore during the first quarter ended June 30, 2013, as compared to a net profit of Rs.24.7 crore in the year-ago period. The airline has also reported lower revenue of Rs.4,064.4 crore as compared to Rs.4,636.7 crore.
JetLite, the low-cost subsidiary of Jet Airways, reported a net profit of Rs.6.8 crore as compared to Rs.11.7 crore.
The airline reported lower revenue of Rs.466.1 crore as compared to Rs.563.2 crore. Indicating bad times, the airline’s seat load factor was lower at 73.5 per cent as against 79.3 per cent in the first quarter of the previous year.
Significant depreciation in the value of rupee along with steep increases in airport charges at key metros and high fuel prices impacted Jet Airways group’s results for the quarter, Jet Airways said.
However, higher yields and continued cost control measures helped the group post an operating profit of Rs.529.9 crore, it added.
The result includes an amount of Rs.131.5 crore on account of foreign exchange translation losses.
“The depreciation of rupee versus dollar, steep increase in landing and navigation charges at key metros and high fuel prices have impacted the industry’s profitability,” Capt. Hameed Ali, acting CEO, Jet Airways (I) Ltd., said.
“The domestic aviation industry continues to go through a turbulent time as it has been for quite some time now due to weak economic scenario resulting in a sluggish demand growth.
This coupled with the airline’s inability to pass on high input costs fully to the passengers, have caused financial strain on the airline. Going forward, we expect the demand scenario to improve in the second-half of the fiscal,” Mr. Ali said.
He said the proposed equity infusion by Etihad Airways would significantly change the landscape of the business not only in terms of de-leveraging the balance-sheet but also reduction in costs due to better bargaining ability as well as higher revenues due to improved connectivity and network reach.
The airline said it plans to raise $300 million through external commercial borrowings (ECB) to retire high-cost debt.