JET Airways, India’s largest airline by passengers numbers posted consolidated group revenues of Rs52,748 million ($948.5 million) for its first quarter of the present fiscal year up by 31.4 per cent in the same period last year. The airline reported profits after five consecutive quarters of losses.
Jet Airways domestic yield was up 8.9 per cent while JetLite saw an increase in yields up by 43.2 per cent versus the same period last year. The first quarter also witnessed passenger growth of 10 per cent in domestic market and Ebitdar (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) of Rs8,255 million ( $148.4 million) against Rs3,330 million ($74.5 million) last year; up 147.9 per cent.
Severely depreciating rupee against dollar, ever escalating ATF (Aviation Turbine Fuel) prices and the imposition of levies and charges on account of improved infrastructure at Delhi Terminal 3 were the key factors resulting in an increase in operating costs. However, yield improvement coupled with increase in demand and stringent cost control measures has helped Jet Group to post profit after tax of Rs364 million ($6.6 million).
Nikos Kardassis, chief executive officer, Jet Airways said, “Fuel cost increase and depreciation of the Indian Rupee versus the US dollar weighed heavily on the industry’s profitability. In fact, the ATF prices per litre were up by 13 per cent versus Q1 FY12 and up by three per cent versus Q4 FY12.”
Profit before tax stood at Rs33.3 million ($6million) against a loss of Rs156.8 million ($35.1 million). The Jet Group continues to maintain its leadership position in the Indian aviation industry with the highest market share of 27.9 per cent for the quarter ending June 2012.
Looking ahead Kardassis believes that second quarter domestic traffic trends will reflect seasonality in seat factors though yields will continue to stay strong.
“The industry capacity growth is expected to be very modest (less than five per cent for the year) and this will result in overall yields and seat factors remaining stable for the balance part of the year. Going forward, we do not expect any major capacity increase given the delivery schedules of airlines in the sector.
However international loads continue to be strong for the second quarter reflecting high seasonality” he added.