|
Improved passenger loads and higher yields
help company post a profit
|
The performance of Jet Airways in the June
quarter shows the demand-supply conditions have helped the airline post good
numbers. Against a net loss of Rs 198 crore that analysts were expecting, the
airline surprised with a net profit of Rs 24.7 crore.
It’s been a strong quarter operationally for the
airline as passenger loads and yields improved beyond expectations. Jet Airways
posted a revenue jump of 32 per cent on a standalone basis to Rs 4,710 crore,
while consolidated revenues (including JetLite) stood at Rs 5,270 crore.
Analysts say the airline has managed to post a
profit of 24.7 crore against a loss of Rs 123 crore in the year-ago period. As
load factors improved, the operating costs also came down, helping the company
book profits.
In the quarter, the airline’s seat factor
improved by 420 basis points to 82.7 per cent from the year-ago period. The
total number of revenue passengers carried also improved by 19.5 per cent
year-on-year to 4.86 million. Average gross revenue per passenger, too, rose by
10 per cent to Rs 8,090.
The company improved its marketshare in the
first quarter of FY13 to 27.9 per cent from 25.5 per cent in the corresponding
period last year.
Aviation analyst Rashesh Shah of ICICI
Securities, says, “We were expecting yields to improve by six-seven per cent.
However, the company posted a much stronger rise in yields. Strong operating
performance has helped costs, as a percentage of sales, (to) come down, too.
This should continue for a few more quarters if the demand-supply conditions
remain tight, even though we see passenger traffic declining.”
The company has not only benefited from the
capacity cuts seen by the industry but also improved its own efficiency. While
it has rationalised loss-making routes on the one hand, its total number of
domestic departures has risen by 14 per cent to 37,330 in the quarter.
On the back of strong load factor and robust
demand, the airline has managed to expand margins in the domestic and
international operations. Operating margins in the domestic operations stood at
15 per cent compared to nine per cent in the year-ago period, while operating
margins in the international business stood at 17 per cent against 11 per cent
in the year-ago period.
While the current demand-supply dynamics is
likely to be beneficial for the company, rising fuel prices and a weaker rupee
are major concerns. The airline believes that competitive pricing could also
impact revenues in the coming quarters.
No comments:
Post a Comment