Jet Airways net loss ballooned to Rs 5,538 crore for the year ending March 31, 2019, as compared to a loss of Rs 767 crore a year earlier, hurt by a substantial increase in fuel costs and other expenses.
In comparison, its standalone revenue was marginally down, by 2.6 percent, to Rs 23,314 crore, from Rs 23,958 crore, a year earlier.
The results, which were announced by the company to the exchanges past midnight on July 29, underline its delicate financial condition. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations.
This is a rare instance of a company announcing its results, more than a year late.
Jet Airways fuel costs jumped by 24.8 percent to Rs 8,680 crore in the year ending March 31, 2019. Its finance cost also increased significantly, by 16.5 percent in the year to Rs 981 crore.
The biggest jump though was in other expenses, to Rs 9,821 crore, from Rs 817 crore. The biggest jump under other expenses that hurt the company most was forex losses. These zoomed to Rs 448 crore for the year, from Rs 47 crore in the year-ago period.
Its non-claimable GST jumped to Rs 397 crore, from Rs 63 crore. There were also significant increases in aircraft and engine rentals.
Announcing the results, the resolution professional overseeing the airline's insolvency process said that he was unable to furnish consolidated results. Ashish Chhawchharia stated:
"This is to bring to your notice that the Resolution Professional is not in a position to provide the consolidated financial results , as the subsidiaries of the company are separate legal entities, also currently non-operational and the RP is facing huge difficulty in obtaining relevant data from the said subsidiaries. In view of the above, the Resolution Professional is hereby submitting the standalone financial results, you are therefore requested to kindly take the same on record."
Jet Airways had last announced its financial results in February 2019, when it reported its third quarter results. It had reported a standalone net loss of Rs 587.77 crore, as compared to a net profit of Rs 165.25 crore in the same quarter a year earlier.
Revenues for the third quarter ending December 31, 2018, were Rs 6,147.98 crore as against Rs 6,086.20 crore, a year ago.
Interestingly, the airline's board had also approved a debt resolution plan that was proposed by the lenders. Alas, that was not enough as the carrier soon defaulted on its payments.
Jet Airways was taken to the insolvency courts by its banks, in June 2019.
After failing to get a new owner for the airline, the resolution professional had restarted the process in May 2020, when fresh EoI were invited. Surprisingly, about a dozen suitors lined up. Four were shortlisted, and out of these two consortiums submitted bids.
One of them was the consortium of Flight Simulation Technique Centre Pvt Ltd, Big Charter Pvt Ltd, and Imperial Capital Investments LLC.
The second consortium consists of London-based financial services firm Kalrock Capital and entrepreneur Murari Lal Jalan. The two bidders had submitted their plans on July 21.
The consortium of Flight Simulation Technique Centre Pvt Ltd, Big Charter Pvt Ltd, and Imperial Capital Investments LLC, had later secured an initial funding of $100 million that will be used to revive Jet Airways.
The Dubai-based investment banking and wealth management company has also brought in Taha Group - a Middle-East based business house - as an investor, in the consortium.
The results for the 2019 financial year, underline the challenge that awaits the new owner of Jet Airways.