Even though Jet Airways carried more number of passengers in the quarter under review, it had a higher net profit of Rs 426 crore for the three months ended March 2016
Jet Airways slipped as much as 4.6 percent in morning trade on the NSE Wednesday, after the airliner reported nearly 95 percent fall in consolidated net profit at Rs 23 crore in the three months ended March 2017 weighed down by higher fuel prices and lower fares took a toll on its bottom line.
At 09:30 AM; Jet Airways recouped some of the losses but was still trading 1.7 percent lower at Rs451.85. It hit a low of Rs438.25 and a high of Rs457 so far in trade today.
In the fourth quarter of 2016 fiscal, the carrier saw total revenue rise over three percent to Rs 5,728 crore. The same stood at Rs 5,533 crore in the year-ago period, according to a release.
Even though the full-service airline carried more number of passengers in the quarter under review, it had a higher net profit of Rs 426 crore for the three months ended March 2016, said a report. The airline flew 7.02 million passengers in the latest January-March quarter.
“Jet Airways reported a mixed weak set of numbers for Q4FY17. While revenue growth during the quarter was hit by pressure on yields its margins also impacted by higher crude oil prices during the quarter,” ICICI Securities said in a report.
“EBITDA margin of 6.7 percent were lower than our estimated margin of 7.2 percent mainly due to a sharp jump in fuel and maintenance costs. Fuel costs (i.e. 28 percent of revenues) were up by 58.6 percent on a YoY basis to Rs1,700 crore, maintenance cost also jumped sharply by 56 percent YoY to a Rs492 crore,” said the report.
Jet Airways Chairman Naresh Goyal said the past year has been extremely challenging for both domestic and international markets.
"Notwithstanding the growth in traffic in the domestic market, the downward pressure on yields continued despite the rise in oil prices," he said in the release.According to him, the company reduced its debt by Rs 1,902 crore despite weakening demand in certain international markets, especially Gulf.The Great Diwali Discount!
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