Jet Airways loss up 109% despite Boeing 787 compenstion

May 24, 2013   ·   0 Comments   ·   843 Total Views   ·   http://www.canindia.com/oaotf

MUMBAI

Compensation from Boeing for delays in delivery of Boeing 787 and profit from sale and lease back of London Heathrow slotsjet airways helped Jet Airways to contain its loss at Rs 743 crore in fourth quarter 2013.

The company’s loss went up by 109% from Rs 354 crore to 743 crore in Q4 2013 on account of increase in other expenses and interest.

Revenue for the period was flat as the airline withdrew many international flights. Howerve the losses would have been much higher but for a s Rs 293 crore in compensation from Boeing for the delay in the delivery of Boeing 787 aircraft and gains from sale and lease back of its slots at Heathrow airport.

Jet has placed an order for 10 Boeing 787 planes and was due to receive them from 2014. Now Boeing has informed them the deliveries will only happen in 2018. From the sale-lease back of Heathrow slots the airline has booked a profit of $ 45 million, it is learnt.

Jet Airways overall revenue for the last quarter stood at Rs 3,990 crore as against Rs 4,092 crore for same quarter last year due to fall in capacity and passengers. On a stand alone basis the airline‘s loss stood at Rs 495 crore while subsidiary JetKonnect (JetLite) posted loss of Rs 248 crore despite its much smaller operations. Infact JetKonnect loss grew 342% to Rs 56 crore to Rs 248 crore in the last quarter.

In the last year there were two rounds of fare hike and we have seen a yield growth of 25 %. The demand for air travel has been slow because of increase in fares but the airline expects demand to rise 10-12% on account of capacity moderation.” it said in a press release.

Operating results for the quarter was impacted due to high fuel prices, rupee depreciation and increase in cost of operations. Temporary slowdown in demand has resulted into capacity reduction. This has resulted in aircraft on ground. Few of them were redeployed to profitable international routes.

The impact of aircraft on ground for the quarter was Rs 90 crore, Jet Airways said. The result also includes one time exceptional items amounting to Rs 310 crore mainly due to maintenance events, payroll arrears, reversal of duty credit and loss on exchange fluctuation.

Hameed Ali, Jet Airways‘s acting CEO said, “Sluggish economic scenario and high yields have resulted in decrease in market demand and capacity. Rupee depreciation, high fuel prices, increase in Landing & navigation costs and Increase in Cost of operations including impact of onetime cost and aircraft on ground has impacted the quarterly results.

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