Jet Airways Increases Profit In The Last Quarter

Better yields and cost cuts helped Jet Airways post a 10.5 per cent increase in net

profit to Rs 58.6 crore in the fourth quarter of 2009-10 over the same period in 2008-09. It has been in the black for a successive quarter, having made a Rs 100 crore net profit in the third one. However, India's largest airline operator in terms of market share posted an increase in standalone net loss to Rs 467.6 crore in 2009-10 from Rs 402.3 crore in 2008-09. But, the airline sounded bullish on the coming quarters, as the market is looking healthy on rising traffic.

Net income from operations rose 15 per cent to Rs 2,604.9 crore from Rs 2,263.4 crore in the fourth quarter a year earlier. Expenditure for the quarter increased by seven per cent, to Rs 2,594.7 crore. But, for the full financial year, yields were over 14 per cent lower at Rs 9,432 crore, from Rs 11,083 crore in the corresponding earlier period.

The airline said the market was looking healthy. "Domestic air traffic has seen a reviving trend over the last few months. Airlines have achieved high levels of seat factors, as well as yield growth. Industry traffic grew by 21 per cent in the fourth quarter of 2009-10, as compared with the same quarter in 2008-09," said a statement from it. "We are seeing healthy seat factors for April and May 2010. The trends for the next few months look healthy and the capacity situation has been under control for the last few months," added the statement.

Jet Airways India and Jet Konnect together have a market share of 25.9 per cent, according to the Directorate General of Civil Aviation's figures.

The airline is also seeing a revival in demand for the premium class flight tickets and expects this to continue over the next few quarters. "On the international routes, we were able to achieve a seat factor of over 80 per cent for the last few months and are seeing consistent growth in operating margins," said the release. The market and analysts, however, were not very happy with the results. Jet's share fell 2.97 per cent on the Bombay Stock Exchange, ending the day at Rs 495.20.

Foreign institutional investors reduced their holding in the company by 1.02 per cent, quarter on quarter, while domestic institutional investors have reduced their holding marginally by 0.39 per cent, q-o-q, to 8.56 per cent.

by: ajit

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