Mumbai: Full fare carrier Jet Airways reported a 53 per cent decline in first quarter standalone profit to ₹103 crore, against ₹221 crore in the previous year period, owing to increased competitive pressure.
Revenue declined 2 per cent to ₹5,112 crore compared with ₹5,220 crore in the corresponding quarter last year.
The airline said the 53 per cent decline in profit was due to the inclusion of an exceptional item on account of contribution receivable from lessors.
“Due to the intense competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue in Q2,” said Naresh Goyal, Chairman, Jet Airways.
“Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel cost in spite of inflationary increases and weakening of the Indian rupee against the US dollar by almost 6 per cent,” he added.
The airline’s strategic partnership with Etihad Airways yielded better results, though. In Q1, code-share traffic delivered by Etihad and its partner airlines to Jet grew 41 per cent, the company said.
Jet was also able to reduce its debt by ₹358 crore during the quarter. Cost per available seat kilometre (CASK) excluding fuel dropped 1.2 per cent to ₹3.20 in the quarter compared to ₹3.24 in Q1 FY16.
To Read the News in Full 12/08/16 Business Line
Revenue declined 2 per cent to ₹5,112 crore compared with ₹5,220 crore in the corresponding quarter last year.
The airline said the 53 per cent decline in profit was due to the inclusion of an exceptional item on account of contribution receivable from lessors.
“Due to the intense competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue in Q2,” said Naresh Goyal, Chairman, Jet Airways.
“Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel cost in spite of inflationary increases and weakening of the Indian rupee against the US dollar by almost 6 per cent,” he added.
The airline’s strategic partnership with Etihad Airways yielded better results, though. In Q1, code-share traffic delivered by Etihad and its partner airlines to Jet grew 41 per cent, the company said.
Jet was also able to reduce its debt by ₹358 crore during the quarter. Cost per available seat kilometre (CASK) excluding fuel dropped 1.2 per cent to ₹3.20 in the quarter compared to ₹3.24 in Q1 FY16.
To Read the News in Full 12/08/16 Business Line
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