High fuel prices and a lean season, among other things, dented the financial performance of Jet Airways for the quarter ended September 30, 2011.
Thecompany posted a net loss of Rs 713.6 crore in the period under review, as against a net profit of Rs 12.4 crore in the corresponding quarter last year.
An exceptional forex loss due to the depreciation of the rupee, amounting to Rs 258 crore, also adversely impacted its performance, Jet Airways said.
“Abnormally high fuel costs, a low fares scenario induced by demand-supply imbalance, together with a depreciating rupee versus the dollar and fare cuts, coupled with the second quarter traditionally being considered the lean season, have all collectively impacted the second quarter performance of Jet Airways.
“We have, however, managed to remain competitive through stringent cost control managed by looking at contract renegotiations, process improvements and increased ancillary revenues,” said Mr Nikos Kardassis, Chief Executive Officer.
The airline will also be doing a sale and lease-back of some of the aircraft to repay the existing high-cost working capital loans, he added.
The airline also said it was exploring options to raise finances to meet various short-term and long-term obligations, including financial support to its unit, JetLite.
In the current scenario, the airlines has, through a series of planned steps, managed to ensure that it remains competitive through stringent cost control, strategic code shares that offer greater connectivity via a wider network, route rationalisation and fiscal prudence, Jet Airways said.
“All of these non-payroll initiatives will augur well for the airlines performance in the second half of the current fiscal.”
Fuel expenses
Total income increased from Rs 3,067.62 crore for the quarter ended September, 2010 to Rs 3,293.54 crore for the corresponding quarter in 2011. The aircraft fuel expenses for Jet Airways went up to Rs 1,491 crore from Rs 994 crore from a year earlier.
Unrealised exchange losses for the quarter soared to Rs 275.6 crore compared with Rs 37.4 crore in the corresponding period last year.
Further, during the half-year ended September 30, 2011, the airline reported a net loss of Rs 836.76 crore against a net profit of Rs 15.92 crore in the corresponding period last year.
On Friday, Jet Airways' scrip closed 2.16 per cent higher at Rs 265.35 on the BSE.