Jet Q2 net loss at Rs 714 cr on high fuel cost, weak rupee

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Jet Q2 net loss at Rs 714 cr on high fuel cost, weak rupee

Jet Airways reported a net loss of Rs 714 crore for the September, on a combination of high fuel cost, low passenger traffic because of slack season, and a huge forex loss triggered by the steep depreciation of the rupee.

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Moneycontrol Bureau

Jet Airways reported a net loss of Rs 714 crore for the September quarter, on a combination of high fuel cost, low passenger traffic because of slack season, and a huge forex loss triggered by the steep depreciation of the rupee.

The carrier has made a profit of Rs 12 crore in the corresponding quarter last year.

The company incurred a forex loss of Rs 276 crore as the rupee weakend over 10% against the dollar Y-o-Y. The company had made a forex gain of Rs 374 crore during the same period last year The company incurs 60% of its expenditure in dollar denomination to pay its outstation staff, buy fuel for its international operations and to pay rentals on aircraft it has bought on lease.

Similarly fuel cost also rose 50% to Rs 1,491 crore Y-o-Y.

Meanwhile, revenues grew 8% to Rs 3294 crore, boosted by an income of  Rs  106 crore from aircraft which the company has leased to international carriers.

Explaining the reasons for the loss during the quarter, Nikos Kardassis, chief executive officer at Jet in an earnings statement said, " Factors like abnormally high fuel costs, a low fares scenario induced by demand supply imbalance, together with a depreciating rupee prevailed during the quarter."

Due to the low fare regime on its domestic network, the airline despite having 72% passenger load factors in a lean period hardly saw any revenue growth at Rs 1208.77 crore Y-o-Y.

International revenues grew 13% to Rs 2,084 crore Y-o-Y.

However, the airline is optimistic on its performance in the Sept-Dec quarter as it is  considered a peak season in terms of passenger loads." Going forward, we should see further improvement in our Business and First class occupancy rising significantly."

Meanwhile, shares of the company closed the day at Rs 265.35, down 1.16%.

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