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Jet Air posts Q3 losses on high fuel cost, outlook grim

Published on Fri, Jan 20, 2012 at 16:07 | Source : Moneycontrol.com

Updated at Tue, Jan 24, 2012 at 13:09

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Jet Air posts Q3 losses on high fuel cost, outlook grim

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Moneycontrol Bureau

Despite December quarter being the strongest seasonally, country's largest private carrier, Jet Airways has posted a net loss at Rs 101 crore down 86% quarter-on-quarter on the back of higher fuel price and a weak rupee.

Sales, however, grew 18% to Rs 3,696 crore year-on-year as its flights recorded high passenger load factors during the quarter.

Shares of the company plunged 5% to 231.65 post the announcement of its Q3 numbers.

Nikos Kardassis, chief executive officer at Jet Airways said, "High fuel prices together with depreciating rupee against the dollar have pulled down the operating results to an extent; however yield improvements due to seasonality and narrowing gap between demand supply imbalances have helped the airlines to post operating profits." The airline has recorded an operating profit of Rs 257 crore during the quarter under preview.

Giving an outlook for the ensuing quarters, the airline in a statement said expensive aviation turbine fuel cost, which constitutes nearly a third of the operating cost to any airline and weakening rupee continue to be a cause of concern for the short term. "But Q4 passenger bookings show encouraging trends, however it will reflect some seasonality," said the airline.

Going forward, the airline expects to complete a sale and lease back transaction of some of its B737 aircraft will help it pay off high costing rupee debt paying off and some working capital loans from the surplus cash that it will generate from this.

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