Jet Airways' rebound in the quarter to June
2012 is a reflection of the fact that full service carriers benefit, even in a
weak operating environment when there are fewer players.
The airline clawed back its way to the black in the June quarter after posting losses for five consecutive quarters with a net profit of Rs 24.7 crore compared to a loss of 123 crore a year ago. This growth has been supplemented by a strong increase in yields and passenger revenues partly boosted by a reduction in capacity because of the troubles being faced by Kingfisher and Air India.
Jet's operating revenues grew 29.5 per cent to Rs 4,587 crore in the June quarter, boosting the company's consolidated yield by an impressive 16 per cent to 4.3 during this quarter on a year on year basis.
This growth comes at a time when passenger growth in the airline industry was a meagre 3.7 per cent in the January to June period. Coupled with the growth in operating revenues, the company's total income was boosted, thanks to its non-operating revenues which trebled to Rs 124 crore in Q1.
These revenues include sale and leaseback of aircraft, and income from non-ticket avenues such as on-board food and baggage fees. The decision to stop operating on loss-making routes such as Sharjah-Trivandrum and Delhi-Colombo also helped. All these helped boost revenues by 31.5 per cent to Rs 4,711 crore during the quarter.
Over 56 per cent of total revenues of Jet Airwaysare accounted for by its international operations. The yields for international operations have improved compared to local operations with a rise of 21.2 per cent to 3.5 on a year-on-year basis, bolstering the airline's consolidated earnings before interest tax depreciation and rentals (EBITDAR) two-fold to Rs 739 crore.
It was a quarter marked by a strengthening of its consolidated load factor to 82 per cent. Much will hinge on Jet's international operations in enhancing its performance. In the next quarter, Jet plans to carry out sale and leaseback transaction of eight to nine aircraft from its fleet of 103. This will help the airline reduce its debt, which was Rs 13,000 crore at the end of March 2012, and also provide revenues in the quarter to September, which is normally a lean business period for the industry. A growing focus on ancillary revenues will also help keep costs under control. Through these initiatives, the company plans to pare its debt by $400 million this fiscal.
That said, a further weakening of the rupee and higher ATF prices, which are now at close to Rs 65,900 per kilolitre, could well mean that airline's revenues may fall on a quarter-on-quarter basis.
The airline clawed back its way to the black in the June quarter after posting losses for five consecutive quarters with a net profit of Rs 24.7 crore compared to a loss of 123 crore a year ago. This growth has been supplemented by a strong increase in yields and passenger revenues partly boosted by a reduction in capacity because of the troubles being faced by Kingfisher and Air India.
Jet's operating revenues grew 29.5 per cent to Rs 4,587 crore in the June quarter, boosting the company's consolidated yield by an impressive 16 per cent to 4.3 during this quarter on a year on year basis.
This growth comes at a time when passenger growth in the airline industry was a meagre 3.7 per cent in the January to June period. Coupled with the growth in operating revenues, the company's total income was boosted, thanks to its non-operating revenues which trebled to Rs 124 crore in Q1.
These revenues include sale and leaseback of aircraft, and income from non-ticket avenues such as on-board food and baggage fees. The decision to stop operating on loss-making routes such as Sharjah-Trivandrum and Delhi-Colombo also helped. All these helped boost revenues by 31.5 per cent to Rs 4,711 crore during the quarter.
Over 56 per cent of total revenues of Jet Airwaysare accounted for by its international operations. The yields for international operations have improved compared to local operations with a rise of 21.2 per cent to 3.5 on a year-on-year basis, bolstering the airline's consolidated earnings before interest tax depreciation and rentals (EBITDAR) two-fold to Rs 739 crore.
It was a quarter marked by a strengthening of its consolidated load factor to 82 per cent. Much will hinge on Jet's international operations in enhancing its performance. In the next quarter, Jet plans to carry out sale and leaseback transaction of eight to nine aircraft from its fleet of 103. This will help the airline reduce its debt, which was Rs 13,000 crore at the end of March 2012, and also provide revenues in the quarter to September, which is normally a lean business period for the industry. A growing focus on ancillary revenues will also help keep costs under control. Through these initiatives, the company plans to pare its debt by $400 million this fiscal.
That said, a further weakening of the rupee and higher ATF prices, which are now at close to Rs 65,900 per kilolitre, could well mean that airline's revenues may fall on a quarter-on-quarter basis.
No comments:
Post a Comment