Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!

Jet Airways rallies 6% on first quarterly profit since 2012

The airline, which has struggled to make money amid fierce competition for fares and high operating costs, said net profit totalled Rs 69.8 crore in the three months to September 30 after it banked a Rs 305 crore gain from the sale of its Jet Privilege frequent flyer programme.

November 10, 2014 / 11:32 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Moneycontrol Bureau


Shares of Jet Airways rallied over 6 percent after the company saw its first quarterly profit since 2012. Boosted by sale of its frequent flyer business, the aviation company posted profit in the quarter ended September.


The airline, which has struggled to make money amid fierce competition for fares and high operating costs, said net profit totalled Rs 69.8 crore in the three months to September 30 after it banked a Rs 305 crore gain from the sale of its Jet Privilege frequent flyer programme.


Excluding the sale, Jet, which is targeting a return to profitability by 2017, lost Rs 235 crore in the quarter, less than the Rs 833 crore it reported a year earlier after operating income rose and fuel costs fell.


During the quarter, its consolidated income rose 13.7 percent to Rs 5,092 crore as against Rs 4,480 crore a year ago. Standalone income jumped 16 percent to Rs 4,772 crore from Rs 4,101 crore, the airline said.

Close

Fuel cost, which used to account for around 50 percent of operational expenses, has also helped the airline. However, it has not specified its fuel cost during the quarter. The combined passenger load factor increased by 1.2 percentage points from 77.4 percent to 78.6 percent on account of flying more passengers during the quarter.


The airline also said its board has approved a proposal to raise up to USD 300 million in term debt by issuing redeemable preference shares, non-convertible bonds or loan from its foreign shareholder Etihad, which had already extended a USD 150 million soft loan to the carrier when it sold 24 percent stake to it. 


At 11:20 hrs Jet Airways was quoting at Rs 262.40, up Rs 10.95, or 4.35 percent on the BSE.

(With inputs from agencies) 

first published: Nov 10, 2014 11:32 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark