The
Jet Airways Group on Friday reported a net profit of Rs85 crore for the third quarter ended December 2012 on the back of higher fares and cost cutting measures.
The airline had reported a net loss of Rs 101.22 crore in the same quarter last year. Improvement in the yields, decrease in costs has helped improve operating margins for the quarter despite a slowdown in traffic growth, higher fuel prices and impact of a weak rupee, the airline said.
"The combined impact of higher yields and lower costs resulted in significantly lowering the breakeven seat factor levels in the business," Jet chief executive Nikos Kardassis said in a statement.
Kardassis said revenues rose 6.6 per cent to Rs 4,251.2 crore, while Ebitdar (Earnings Before Interest Tax Depreciation and Rentals) soared 281 per cent to Rs 865.8 crore, despite higher fuel prices and rupee depreciation. Average gross revenue per passenger or yield rose 18.6 per cent, but the seat factor declined to 75.6 per cent from 78.6 per cent.
The airline, during the quarter, has pulled out of loss making routes, redeployed aircraft to other profitable routes, which helped in improving overall international performance.
Meanwhile, ahead of finalising Etihad's deal to acquire 24 per cent stake in Jet Airways, top brass of the two carriers met finance minister P. Chidambaram on Friday and are understood to have discussed regulatory requirements. "I am happy and satisfied. I will speak to you at the right time," Jet promoter Naresh Goyal told reporters after he and Etihad president and CEO James Hogan met Chidambaram at the North Block headquarters of the finance ministry. The two airlines are likely to clinch the deal soon and apply for approval of the stake sale deal to the Foreign Investment Promotion Board (FIPB) of the finance ministry.
Courtesy: Mail Today
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