Jet Airways Q4 loss narrows to Rs 1,729 cr on lower expenses

New Delhi: Jet Airways today narrowed its net loss to Rs 1,728.99 crore for the three months ended March 2015, helped by lower expenses, fall in aviation fuel costs and higher income from operations.

  Jet Airways Q4 loss narrows to Rs 1,729 cr on lower expenses

Representational Image. Reuters

The carrier, which has completed the first year of its strategic alliance with Etihad, had a net loss of Rs 2,513.57 crore in the year-ago period.

However, total income from operations jumped to Rs 5,064.52 crore in the fourth quarter ended March 2015 from Rs 4,566.17 crore in the same period a year ago.

Jet Airways said the improvement in performance is largely attributable to implementation of a single brand and full service strategy across the domestic operation.

The year also saw the optimisation of the network to ensure better integration between domestic and international perations, an increased focus on premium traffic and improved aircraft utilisation," it said in a statement.

The airline said it witnessed "ongoing improvements" in all key performance indicators during the latest quarter.

In the 2015 March quarter, standalone total expenses declined to Rs 5,595.64 crore as against Rs 5,932.21 crore in the three months ended March 2014.

The carrier benefited from fall in ATF prices as the overall fuel costs in the latest quarter fell to Rs 1,334.47 crore. In the year ago period, the same stood at Rs 1,906.39 crore.

Jet Airways chairman Naresh Goyal said FY 2015 was an encouraging year "as we set out to change the fundamentals of this business, allowing us to deliver a significant improvement in our net result".

This demonstrates unequivocally that the three-year turnaround plan we put in place last year is on track, he added.

The carrier saw its code share traffic soar 90 percent to 1,221,468 passengers in the fiscal ended March 2015.

For the year ended March 2015, Jet Airways saw its standalone net loss steeply narrow to Rs 1,813.71 crore from Rs 3,667.85 crore in the year-ago period.

The airline's standalone total income from operations climbed to Rs 19,573.43 crore in the year ended March 2015 compared to Rs 17,301.89 crore in the same period a year ago.

On a consolidated basis, Jet Airways's net loss nearly halved to Rs 2,097.41 crore in the year ended March 2015. In the comparable period, the same stood at Rs 4,129.76 crore.

In the previous fiscal (ended March 2015), the company's consolidated total income from operations went up to Rs 20,965.60 crore as against Rs 19,035.84 crore in the year-ago period.

"We have made significant progress on all key fronts of the business, and achieved substantial growth in all of our major key performance indicators in a turbulent and competitive business environment," Jet Airways CEO Cramer Ball said.

"While the Indian aviation market is still subject to ongoing structural challenges and robust competition is placing pressure on yields, we will continue to progress by focusing on delivering an enhanced experience for our guests and improving efficiency throughout the business," Goyal said.

FY15 was the first full year of strategic partnership with Etihad Airways, which has opened up strong and new synergies, Ball said.

"Jet Airways now offers enhanced global connectivity along with Etihad Airways and other Etihad Airways Partner airlines such as airberlin and Alitalia, helping to deliver an increase in our international passenger traffic," he added.

With the strategic investment by Etihad Airways, there is an improvement in operating cash flows through network synergy, cost synergies, revenue management and leasing out aircraft, Jet Airways said.

"These measures coupled with ongoing initiatives to raise funds are expected to result in sustainable cash flows and accordingly the statement of financial results continued to be prepared on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the normal course of business," the company noted.

Shares of the company rose marginally to close at Rs 385.40 on the BSE.

PTI

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Updated Date: May 29, 2015 20:51:08 IST