Jet net loss at Rs 45 cr

BS 200 SCORECARD

Rising fuel prices and pressure on yield "� average revenue per passenger "� took its toll on Jet Airways' Q1 performance.

The company posted net loss at Rs 44.98 crore for the quarter ended June 30, 2006 against a net profit of Rs 95.34 crore for the corresponding period in the previous financial year.

However, total income from operations grew 24.78 per cent at Rs 1,678.76 crore for the reporting quarter against Rs 1,345.36 crore for the corresponding period in the last financial year.

The company said the near-term outlook remained difficult, notwithstanding the continuing growth of domestic and international passenger traffic and strong underlying economic growth.

"The financial performance in the quarter was impacted by factors including continuing yield pressure in domestic and international operations and an increase in fuel and other input costs," Jet Airways executives said.

Despite these pressures, the company reported profit before tax on our domestic operations of Rs 11.8 crore, they added.

Loss before tax in its start-up international operations of Rs 71.3 crore resulted in an overall loss before tax for the company of Rs 595 crore in the quarter.

The airlines' employees remuneration and benefits expenses zoomed 106.48 per cent at Rs 229.08 crore during Q1 2006-07 against Rs 110.94 crore during Q1 2005-06.

The aircraft fuel expenses too shot up 68.42 per cent at Rs 585.85 crore in Q1 2006-07 against Rs Q1 2005-06 in Q1 2005-06.

"Our domestic passenger yield, or average revenue per passenger, remains higher than that of the industry. However, yield in the first quarter was nine per cent lower as compared to the same period a year ago. After considering the fuel surcharge introduced on May 1, gross yield was lower by 6 per cent," the Jet executives said.