Next few qtrs to be very challenging: Jet Airways

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Jet Airways has announced its results for the quarter ended March 2008 (Q4). The company has incurred a net loss of Rs 221.2 crore versus loss of Rs 88 crore.

Key Takeaways from Jet Airways concall:

• The company's Q4 revenues were up by 37% at 2727 crore,YoY.
• The company's FY08 revenues were at 9481.5 crore versus Rs 7401.53crore.
• The company's FY08 net loss Rs 253.1 crore versus profit of Rs 27.9 crore.
• Domestic operations accounted for 58% of operating revenues (Rs 16,001 million USD 398.8 million) as compared to 76.3 % (or Rs 15,094 million, USD 347.23) in the fourth quarter of last year, reflecting the growing contribution of the Company's international operations to total revenues.
• The revenues from International operations now account for 42.% of operating revenues (Rs. 11,598 million, USD 289.1 million) as compared to 23.7% (Rs. 4,689 million, USD 107.86 million) in the fourth quarter of last year.
• The Company recorded a pre-tax loss on domestic operations of Rs 1,108 million (USD 27.6 million) versus a profit of Rs. 1,183 million (USD 27.2 million) in the same period a year ago.
• The pre-tax loss on international operations was Rs 2,633 million (USD 65.6) as against a pretax profit of Rs 31 million (USD 0.7million) in the same period last year. This was largely on account of the start up nature of the new routes to the USA, Gulf that the company started during the last few months.
• The key factors driving the domestic performance in the fourth quarter included rising fuel prices and slowdown in demand in the domestic market
• There was a charge close to of Rs 690.1 million (USD 17.2 million) on account of derivative transactions which were marked to market as on March 2008, and were extraordinary in nature.  
• The average staff numbers increased from 10,590 to 12,777 on account of the expansion in level of international operations.
• During the quarter the company inducted 3 additional widebody aircraft to the fleet in addition to the 3 narrow body aircraft that was added to domestic fleet.
• International network has been further enhanced with more codeshare agreements that we have announced the principal amongst them being the ones with American Airlines, Air Canada, ANA and Etihad more recently.
• The average number of aircrafts deployed in the quarter were 79 aircrafts out of which 17 were for international and balance were deployed for domestic.
• The capex in FY08 was USD 1.6-1.7 billion an is expected to be USD 340 million in FY09 and USD 400 million in FY10.
• The next few quarters are expected to be impacted negatively by very high fuel prices as the company has seen in the months of April, May and June and airlines across the world are reeling under this "oil shock". This is putting significant pressure on airline operating costs.Overall, expect the next few quarters to be very challenging.
• The cash position as on March 31, 2008 was Rs 8.5 billion.
• The debt as on March 31, 2008 was Rs 160 billion and shareholders funds were Rs 45.45 billion.

for more on this listen to the concall...