Higher revenue and improvement in yields coupled with reduced operating expenses helped Jet Airways to return to profit. The airline reported a consolidated net profit of Rs 93 crore in third quarter FY 2013 against a loss of Rs 122 crore in same period last year.
Jet Airways revenue grew 6.6% to Rs 4251 crore and earning before interest tax depreciation amortisation and rentals was up 28% as the airline scaled back capacity and cut down its costs. Expenditure was down 7.5% largely due to a decline in employee, fuel and sale and distribution related costs.
Overall the airline reduced capacity by 9% and carried 10.7% less passengers compared to 3Q 2012. Even the loads were lower but the airline reported 22 % yield growth in its domestic and international operations. International service accounts for 56% of total revenue on a stand alone basis.
JetLite (re branded as Jet Konnect) capacity reduced 21% and it carried 16% less passengers. Its revenue too declined 2.7% but it turned profitable (Rs 8.1 crore profit ) due to 30% growth in yields.
"Improvement in yields, decrease in unit costs has helped to improve operating margins for the quarter. "This is despite slowdown in traffic growth, higher fuel prices and impact of a weak rupee as against US dollar. The unrealised exchange loss for the quarter was approximately Rs.48 crore,'' the airline said.
Over the last few months discontinued loss making services to Johannesburg, New York and has decided to pull out of Milan. "This also resulted in instances of aircraft on ground in the short term, the impact of which for the quarter was approximately Rs.55 crore,'' it said.
"All our efforts on revenue, costs and network side have resulted in turning around of airline operations. This is despite higher fuel prices and rupee depreciation impact,'' Jet's chief executive officer Nikos Kardassis said in a statement.
"In domestic operations the airline just made Rs 10 crore profit. This is despite the fact Q3 is a peak season for travel. The airline has carried out sale and lease back of seven planes and this is reflected in an increase in lease costs. However its interest costs on a consolidated basis too have increased,'' an analyst said.