Jet Airways Q2 net profit nosedives 91% to Rs 50cr

Jet Airways

"Jet Airways also derived significant operational and business advantages via synergies with its strategic partner - Etihad Airways, as well as other codeshare partnerships, carrying a growing and significant number of global travellers across its 64 destination network, including gateways at Abu Dhabi, Amsterdam, Paris and London", said he.

During the quarter, the full-service airline reported net sales income of Rs. 5,626.61 crore as compared to Rs. 5,453 crore in the same period a year ago.

At 10:20 AM; it was trading at 3% lower at Rs 675 against 0.71% rise in the benchmark index. In a later note, the airline said it had made a profit of Rs 190.22 crore a year ago on the sale and leaseback of planes. Other income, which is generally the nonaeronautical revenue, came down by 59% toRs131.6 crore in the reporting quarter, from Rs 319.6 crore in the year-ago period, according to the filing. It made no such profit this year. Quarterly total expenses rose 9.2% to Rs5,709 crore with aircraft fuel expenses rising about 17%. "The weak demand in the Gulf continues, whilst low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices", Jet Airways chief executive Vinay Dube said in a company statement. Other expenses grew 26% to Rs 1350 crore.

During the quarter, Jet Airways also reduced its net debt by INR 194 cr.

Jet's weak performance is contrary to its listed peers. Despite posting a profitable quarter, the second-largest air carrier saw its profit fall by 91 per cent in the September quarter of the current fiscal.

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