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Jet Airways will add capacity on domestic and international routes from October and will have a net addition of six narrow body Boeing 737s in the fleet in the current fiscal, company officials informed equity analysts in a post result conference call on Monday. The airline has also cautioned that it will not be able to pass on higher costs to passengers as it is a weak quarter for travel.
The airline posted a consolidated loss of Rs 348 crore in Q1 of FY 2014 citing higher operating costs and impact of rupee devaluation. Revenue too was lower as the airline pulled out of loss making domestic and international routes and had to ground six wide body airbus A330 planes. Capacity and passenger flown too declined in Q1 2014 over the same period previous year.
Jet's vice president (investor relations) K G Vishwanath told analysts the airline had not further reduced capacity in Q2 and incremental addition will take place from October onwards. The airline is expected to receive 12 Boeing 737s this year but half the number from the existing fleet will be out of operation due to end of lease term. The net addition will be of six planes four of which will be used on international routes.
The airline earns 57 percent of revenue from international operations and expects international capacity to grow 10-12 percent in this fiscal. It is hoping to ramp up its international service following its alliance with Etihad Airways and will use Abu Dhabi as a hub for its international flights. Vishwanath said the airline will induct 5 wide body Boeing 777s from 2015. These were ordered earlier. The airline will also begin receiving its ten Boeing 787 from 2016 onwards.
