Jet Airways Q3 profit slumps to Rs 142 crore on higher costs
The airline had a net profit of Rs 467.11 crore in the year-ago period.
New Delhi: Jet Airways today reported an early 70 per cent plunge in net profit at Rs 142.38 crore in the three months ended December 2016 as higher fuel expenses and other costs adversely impacted the full service carrier.
The airline had a net profit of Rs 467.11 crore in the year-ago period.
In the 2016 December quarter, the airline carried more number of passengers at 6.79 million compared to 6.52 million in the same period a year ago. Jet Airways' total income from operations stood at Rs 5,478.07 crore in the October-December quarter of the current fiscal, according to a filing to the BSE.
The same was at Rs 5,443.97 crore in the corresponding period a year ago.
In the latest quarter under review, the airline saw its fuel costs climb to Rs 1,428.89 crore which also pushed the total expenses higher. The expenses went up to Rs 5,405.32 crore in the December quarter, as per the filing.
The airline in a release said the group reported seventh successive profitable quarter with a profit of Rs 156.3 crore in the three months ended December 2016, "supported by rising traffic and improved business efficiencies".
Jet Airways Chairman Naresh Goyal said that in spite of the continuing downward pressure on yields caused by aggressive capacity addition in the industry as well as weaker international aviation markets, the airline achieved positive results.
"We have deepened our codeshare relationships with our strategic partner, Etihad Airways, and also with other airlines in the Far East, Asia Pacific and Africa.
"Our choice of Amsterdam as our European gateway, coupled with our comprehensive codeshare partnerships with Air France, KLM and Delta Air Lines out of Amsterdam, Paris and London Heathrow are also beginning to show promising results," Goyal said.
Traffic from codeshare partners rose 7 per cent to 0.56 million passengers from 0.52 million passengers in Q3 FY16, the release said. In the latest December quarter, the group reduced its net debt by Rs 1,001 crore, it added.
Goyal said various initiatives undertaken by the company in relation to cost synergies, revenue management opportunities and ancillary revenues have resulted in significant improvement in operating cash flow.
"Further, our continued thrust to improve operational efficiency and initiatives to raise funds are expected to result in sustainable cash flows.
"Accordingly, the statement of financial results continue to be prepared on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the normal course of business," he noted.