Jet Airways likely to post net loss at Rs 197 cr in Q2

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Jet Airways likely to post net loss at Rs 197 cr in Q2

Jet Airways is expected to report a standalone net loss of Rs 197 crore in the second quarter of FY12 as against net profit of Rs 12.3 crore in the corresponding quarter of last fiscal.

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Jet Airways is expected to report a standalone net loss of Rs 197 crore in the second quarter of FY12 as against net profit of Rs 12.3 crore in the corresponding quarter of last fiscal.

Revenues are seen going up 13.2% to Rs 3,517 crore from Rs 3,105 crore during the same period.

EBITDAR is likely to go down 46% to Rs 367 crore in the July-September quarter of FY12 from Rs 686 crore in a year ago period.

EBITDAR is expected to be at 10.6% versus 22% year-on-year while EBIT is likely to be at -2% (negative) as against 8% year-on-year.

Fuel cost is expected to rise 56% to Rs 1,548 crore from Rs 994 crore.

Jet Airways' consolidated (includes Jet airways and Jet lite) revenues seen going up 15% to Rs 4,005 crore from Rs 3,486 crore year-on-year. Net loss is expected to be at Rs 350 crore versus loss of Rs 50 crore during the same period.

What to watch out for :

Losses expected to peak this quarter

3 main factors affecting profitability
1) Higher crude prices; YTD FY12 jet fuel prices average USD 128 a barrel and up 45% YoY
2) Overall load factor to be flat YoY at 63%
3) 11% YoY rise in overall yields at 42 versus 37.8 

Depreciation of rupee will mean increased interest burden on dollar denominated debt (current consolidated debt at Rs 13,700 crore)

Revenues are expected to grow only 13.2% YoY versus last quarter's growth of 15.4% due to seasonal impact.

Although Jet has retained its dominance by targeting the LFC segment and reducing its expenses (ex-fuel), its operating margins are expected to remain under pressure due to lower yields and higher fuel prices