Jet Airways Group (Jet Airways) (Mumbai) has reported a net loss of $43 million in the third quarter. The group issued this financial statement:
Jet Group reports lower Loss before Tax of INR 2,839 Million for Q3 FY14 as against INR 9,984 Million in Q2 FY 14
Highlights for quarter ended December 31, 2013 vs. December 31, 2012 (Jet Group)
- 4% growth in number of passengers.
- 5% growth in Available Seat Kilometers.
- 4% growth in number of departures.
- 6% increase in operating revenue, Q3 FY14 operating revenues are INR 49,901 Mio vs. Q3 FY13 was INR 47,223 Mio.
- 1% increase in passenger yields to Rs. 8,056 from Rs. 7,974
Domestic Yields have improved by 20% in Q3 vs the previous quarter whereas Market Share continues to remain strong at 24.6%.
International Operations achieved 81.6% seat load factor vs 78.0% in the same quarter last year.
However, Rupee depreciation, high fuel prices and increase in airport charges continued to impact costs in the current quarter.
Instances of aircraft on ground impacted the quarter by INR 1,057 million. During the quarter 2 A330’s were sold and the balance access capacity is expected to be sold/leased out in coming quarter.
Fuel rates increased by approximately 10.6% vs the same quarter last year.
Etihad invested 2,057 crores in November 2013 for a 24% stake in Jet Airways.
Competition Commission of India has approved an investment of 50.1% stake in Jets customer loyalty program on February 5.
Mr. Ravishankar Gopalakrishnan, Chief Financial Officer, Jet Airways (I) Ltd said,
“Jet Airways reports a reduced loss of INR 2,839 Million in Q3 owing to improved passenger yields and sustained market share.
Post the equity infusion by Etihad, Jet reduces its debt from INR 124,947 Million as of September’13 to INR 108,952 Million in December’13. This will help lower Jet’s interest costs going forward.”
Network expansion plans for additional fights to Gulf and Europe.
Q4 is expected to be muted on account of both yields and seat factors.
Rupee depreciation versus dollar continues to be a cause of concern.
High cost debt will be replaced with cheaper debt resulting in reduced Interest costs.
The surplus aircraft in the system will be either leased out or sold in coming quarter.
Focus on various avenues of ancillary revenues should help to boost revenues in the quarters to come.
Synergies in terms of network and costs will start to impact numbers positively in the next few quarters.
Copyright Photo: TMK Photography/AirlinersGallery.com. Jet Airways is reducing its Airbus A330 fleet. Airbus A330-243 VT-JWE (msn 807) taxies at Toronto (Pearson).