Jet Airways posts Rs 283-cr loss

Loss for nine months crosses Rs 1,600 crore; debt burden reduces after Etihad investment

Jet Airways reported a third successive consolidated quarterly loss of Rs 283 crore in the December quarter of the current financial year as against Rs 93-crore profit in the corresponding period last year.

In the first nine months of the year, the airline posted a loss of Rs 1,629 crore. The loss is, however, lower than the Centre for Asia Pacific Aviation estimate. It had pegged the loss to be between $60 and $80 million (Rs 370 crore and Rs 500 crore).

The period between October and December is a seasonally good quarter for airlines, as it brings in high loads and better revenue because of rise in leisure travel. Yields improved 20 per cent and revenue rose six per cent but the result was adversely impacted due to rupee depreciation and higher fuel cost. Aircraft on ground resulted in an impact of Rs 105 crore. The airline has sold two wide-body A330s and is expected to sell three other aircraft to cut costs. “It is a weak result despite the quarter being good for airlines,” an analyst said.

The loss does not include a sum of Rs 123 crore towards maintenance costs. The airline said it did not incorporate engine maintenance costs in its quarterly income statement. Jet Airways said it is renegotiating its maintenance agreement for wide-body aircraft engines and, hence, other expenses in the income statement do not include an estimated expense of Rs 123 crore pursuant to terms offered by the service provider.

Chief Financial Officer Ravishankar Gopalakrishnan said, “Jet Airways reports a reduced loss of Rs 283 crore  in Q3 (on a sequential basis),  owing to improved passenger yields and sustained market share. Post the equity infusion by Etihad, Jet has reduced its debt from Rs 12,494 crore to Rs 10,895 crore. This will help lower Jet’s interest costs.”

Jet said the fourth quarter was expected to be muted on yields and loads. The airline expects to add more flights to the Persian Gulf and Europe and plans to lease or sell excess  aircraft. Synergies, in terms of network and costs, would start to impact numbers positively in the next few quarters, it said.
ABU DHABI BOOST FOR ETIHAD

• Indian air travellers flying with Etihad Airways to the US can now clear Customs and immigration at Abu Dhabi airport
• The pre-clearance facility allows passengers to be processed through US immigration and Customs, public health and agriculture department inspections before boarding, eliminating the need to do so on arrival in the US
• Indian air travellers flying with Etihad Airways can connect from Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kochi, Kozhikode, Mumbai and Thiruvananthapuram, via Abu Dhabi, to Chicago, New York and Washington DC