Jet Airways (India) fell 2.63% to Rs 336.95 at 9:35 IST on BSE after the company posted a net loss of Rs 891.01 crore in Q2 September 2013, higher than net loss of Rs 99.67 crore in Q2 September 2012.
The result was announced after market hours on Wednesday, 23 October 2013.
Meanwhile, the BSE Sensex was up 120.16 points, or 0.58%, to 20,888.04.
On BSE, 1.90 lakh shares were traded in the counter compared with average volume of 5.17 lakh shares in the past one quarter.
The stock hit a high of Rs 337.80 and a low of Rs 325.05 so far during the day. The stock hit a 52-week high of Rs 688.60 on 25 April 2013. The stock hit a 52-week low of Rs 280 on 28 August 2013.
The stock had underperformed the market over the past one month till 23 October 2013, sliding 1.98% compared with the Sensex's 4.36% rise. The scrip had also underperformed the market in past one quarter, falling 6.76% as against Sensex's 2.29% rise.
The small-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.
Jet Airways (India)'s total income rose 1.74% to Rs 4267.77 crore in Q2 September 2013 over Q2 September 2012.
The company reported 1% increase in operating revenue to Rs 4607.90 crore in Q2 September 2013 over Q2 September 2012.
In terms of operational performance, the company reported 12% growth in number of passengers, 3% growth in available seat kilometres and 6% growth in number of departures in Q2 September 2013 over Q2 September 2012.
The company registered 11% fall in passenger yields to Rs 7376 in Q2 September 2013 from Rs 8335 in Q2 September 2012. Jet said lean season and economic slowdown resulted in drop in yields. Depreciating currency, high fuel prices and increases in airport charges in select Indian airports have driven cost pressures resulting into losses.
There were also instances of aircraft on ground, the impact of which was approximately Rs 123.30 crore. These aircrafts will be leased out in the next few months, the company said in a statement.
Fuel rates increased approximately by 8% in Q2 September 2013 over Q2 September 2012. A portion of this was passed on to the passengers in the form of increase in fuel surcharge during September and early October. Full impact of this will be seen from the current quarter, the company said.
Mr. Gary Toomey, Chief Executive Officer, Jet Airways (I) said: "Indian aviation Industry witnessed increasing cost challenges, mainly due to Rupee depreciation against US Dollar, high fuel prices and increase in airport charges in certain stations putting pressure on the bottom line. In the current scenario, Jet Airways has managed to remain competitive through series of planned steps, such as discontinuing loss making routes and stringent cost control measures. The ongoing initiatives will augment well for the airline's performance in the quarters to come. We believe and strive for customer satisfaction by investing into effective marketing strategies and proactive initiatives resulting in enhancing our guest experience. Jet airways roots for customer delight while building industry benchmark for service excellence and supreme quality."
In its outlook, Jet Airways said that Q3 December 2013 quarter will reflect high seasonality, which will help to improve yields. Domestic fare revision which was made at the fag end of Q2 September 2013 will start showing positive effect in the balance part of the year. The forward booking trends for the quarter are quite encouraging. In this ensuing peak season more of business class seats will be on offer.
Rupee depreciation versus dollar and crude oil prices continues to be a cause of concern, the company said, adding that balance sheet deleveraging will play out. High costing debt will be repaid through equity infusion and cheaper debt.
The company said it will either leased out or sell the surplus aircraft in the system in quarters to come. The firm said it will focus on various avenues of ancillary revenues, which should help to boost revenues in the quarters to come.
Jet Airways currently operates a fleet of 113 aircraft, which include 10 Boeing 777-300 ER aircraft, 10 Airbus A330-200 aircraft, 4 Airbus A330-300 aircraft, 72 next generation Boeing 737-700/800/900/900 ER aircraft and 15 ATR 72-500 and 2 ATR72-600. With an average fleet age of 5.17 years, the airline has one of the youngest fleet of aircraft in the world. Flights to 75 destinations span the length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London (Heathrow), Muscat, New York (Newark), Riyadh, Sharjah, Singapore and Toronto.
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