|
|
 |
|
|
|
|
|
|
|
|
|
|
|
Jet Airways reports loss of Rs. 911 mn (US$ 23.1 mn) for Q3 FY ‘08 vs a profit of Rs. 400 mn in Q3 FY ‘07
|
|
28 Jan 2008
|
|
|
|
|
|
Jet Airways reports loss of Rs. 911 mn (US$ 23.1 mn) for Q3 FY '08 vs aprofit of Rs. 400 mn in Q3 FY '07 on account of historical high fuel pricesand start up losses on international business;Revenues up 28% YoY, International revenues now 37% of total.
Highlights for quarter ended December 31, 2007 vs. December 31, 2006
Operational:
• System-wide ASKMs of 6,586 million, up 43.2%
• System-wide RPKMs of 4,554 million, up 43.0%
• System wide seat factor of 69.1% vs 69.3%
• 2.95 million revenue passengers carried up 8.7%
Financial:
• Revenue of Rs. 25,172 million (US$ 638.6 million), up 27.8%
• Loss before tax Rs. 1,304 million (US$ 33.1 million) vs profit of Rs. 619 million (US$ 14.0 million), down by 310.5%
• Loss after tax of Rs. 911 million (US$ 23.1 million) vs profit of Rs. 400 million (US$ 9.0 million), down 327.5%
Exchange rate used 1 USD = INR 39.415
Highlights for nine months ended December 31, 2007 vs. December 31, 2006
Operational:
• System-wide ASKMs of 16,763 million, up 28.7%
• System-wide RPKMs of 11,463 million, up 28.6%
• System wide seat factor of 68.4% vs 68.4%
• 8.26 million revenue passengers carried up 3.0%
Financial:
• Revenue of Rs. 67,545 million (US$ 1,713.7 million), up 24.8%
• EBITDAR of Rs. 5,387 million (US$ 136.7 million), down by 1.7%
• Loss before tax Rs. 384 million (US$ 9.7 million) vs loss of Rs. 701 million (US$ 15.8million), up 45.2%
• Loss after tax of Rs. 319 million (US$ 8.1 million) vs loss of Rs.601 million (US$ 13.6million), up 46.9%
Exchange rate used 1 USD = INR 39.415
Management Discussion and Analysis (quarter)
Domestic operations:
Domestic operations accounted for 63% of operating revenues (Rs. 15,397 million US $ 390.6 million) as compared to 79 % or (Rs. 14,735 million US $ 332.9) in the third quarter of last year, reflecting the growing scale and contribution of the Company's international operations.
The Company achieved a domestic seat factor of 72.3% in the quarter ended December 2007 versus 70.1% in the same period a year ago.
Our full-fare versus discounted fare mix was at approximately 25:75 while yields have increased by 2.6% YoY.
The Company generated pre-tax loss on domestic operations of Rs.144 million (US$ 3.7 million) versus a profit of Rs. 733 million (US $ 16.6 million) in the same period a year ago. The last year same quarter included profit on sale of one aircraft amounting to Rs. 482 million (USD 10.9 million).
Excluding this impact the profit for Q3 FY 2007 would have been Rs. 251 million and considering the impact of a much higher level of fuel prices in the current year, the loss of Rs. 144 million is a significant achievement. This loss margin is even less than 1% of total revenues.
The key factors driving the domestic performance in the third quarter included:
Slowdown in capacity induction in the domestic market:
• The rate of capacity induction during this quarter and more generally in the market has started to slow down. For the quarter ending December 2007, capacity grew by 22% vs same period last fiscal. The growth rates in the last few quarters have been close to 38%.
• Jet Airways' capacity deployed was in line with the same period last year & this was due to the network rationalization on account of which we pulled out of certain loss making flights and combined flights on certain routes.
Fuel costs:
• Fuel costs were higher by Rs. 609 million (US$ 15.5 million) versus the same period a year ago; this was largely due to higher rates of fuel and the lower number of flights operated. The average fuel rate was at Rs. 44.19 per litre as compared to Rs. 39.24 a year ago and Rs 39.79 per litre in the preceding quarter.
• The impact of fuel and other surcharges fully mitigated the high costs of fuel and additional costs related to congestion during the quarter.
Increase in other operating costs:
• At the Company level, the average staff numbers increased from 9,780 to 11,910 on account of the expansion in level of international operations. New hires among pilots, engineers and cabin crew constituted the bulk part of this increase.
• The increases in all other costs were in line with the increase in level of operation and in most instances even lower than that of the same period last year.
International operations:
The revenues from our International operations now account for 37% of operating revenues (Rs. 8,863 million US $ 224.85 million) as compared to 21.4% (Rs. 4,019 million US $ 90.8 million) in the third quarter of last year.
The Company achieved a seat factor in international operations of 66.4% for the quarter (67.6% a year ago).
The pre-tax loss on international operations was Rs. 1,159 million (US$ 29.4) as against a pretax loss of Rs. 113 million (US$ 2.6million) in the same period last year. This was largely on account of the start up nature of the new routes to New York (Newark and JFK), Toronto and Dhaka that we started during the last four months. Additionally we also upgraded our services to Singapore and Malaysia to a wide body aircraft from Dec‘2007.
During the quarter we inducted 5 additional widebody aircraft to the fleet in addition to the 5 narrow body aircraft that we added to our domestic fleet.
With additional frequencies being added via Brussels, the international hub has connections possible between main metros in India to New York, Toronto as well as to over 50 destinations in Europe with our codeshare arrangement with Brussels Airlines.
Outlook
The coming quarter is historically not a high season for domestic operations. The initial numbers for January 2008 have seat factor in high 70‘s.
We launched Gulf routes in January 2008 on Kochi-Kuwait, Kochi-Bahrain, Mumbai-Bahrain, Delhi-Kuwait. We also introduced flights to Muscat from Kozhikode (Calicut) and Kochi, and to Doha from Mumbai and Kozhikode.
Operations to San Francisco via Shanghai and to Hong Kong from Mumbai & Delhi will be launched in the next few months.
The new agreement between India and Saudi Arabia will allow Jet Airways to start operating flights to Saudi Arabia. The ministry is also reviewing our application to fly to Dubai and Abu Dhabi.
The rate of capacity induction in the domestic environment has seen a steady decrease quarter over quarter. Airlines are reportedly going slow on capacity addition.
These factors should help in bringing stability to the market and help to increase yield.
The forward bookings on our international routes are as per our expectations.
Financial results of Jet Lite for the Q3 and 9 months ended December 2007:
Achieved seat factor of 71.6% in Q3 (vs 71.1% for H1 FY08)
• Achieved Revenues of Rs. 4,299 million in Q3 and 11,581 million in 9 months ( vs Rs. 20,228 million for FY 2007)
• Negative EBITDAR of Rs. 80 Million in Q3 and Rs. 610 million in 9 months (vs negative Rs. 1,693 million for FY 2007)
• Loss before tax of Rs. 860 million in Q3 and Rs. 2,782 million in 9 months(vs loss of Rs. 6,877 million for FY 2007)
Break even seat factor for Apr to Dec, down to 90.2 % (vs 119% in FY 2007)
Revenue per RPKM Rs. 3.6 in Q3 vs Rs. 3.4 in H1 FY 2008
Cost per ASKM has been stable at Rs. 3.1 in Q3 inspite of high fuel rate.
Cost per ASKM w/o Fuel is ~7.5% lower than pervious quarter
We have managed to achieve a significant reduction in losses at EBITDAR level on a sequential basis as we continue to increase utilization of aircraft in fleet, reduce unit costs due economies of scale and improve processes to achieve full synergies in the areas of network, fleet and operations.
Exchange rate used 1 USD = INR 39.415
Awards and Recognition
• Genius of the Web Awards 2007 for the Best Airlines website -The Jet Airways website, www.jetairways.com, was awarded the prestigious Genius of the Web Awards 2007 for the Best Airlines website. - October 07
• Jet Airways wins Double Honour at the 18th TTG (Travel Trade Gazette) Travel Awards 2007 -Jet Airways won the "Best Domestic Airline" award for the fourth consecutive year and the fifth time in the past six years & "Travel Entrepreneur of the Year" award conferred on Mr. Naresh Goyal, Chairman, Jet Airways œ October 07
About Jet Airways
Jet Airways currently operates a fleet of 76 aircraft, which includes 8 Boeing 777-300ERs aircraft, 52 classic and next generation Boeing 737-400/700/800/900 aircraft, 7 Airbus A330-200 aircraft, and 9 modern ATR 72-500 turboprop aircraft. With an average fleet age of 4.37 years, the airline has one of the youngest aircraft fleet in the world. Jet Airways operates over 350 flights daily.
Jet Airways currently flies to 59 destinations that span the length and breadth of India and beyond, including New York (JFK and Newark), Toronto, Brussels, London Heathrow, Singapore, Kuala Lumpur, Colombo, Bangkok, Dhaka, Kathmandu, Bahrain, Kuwait, Doha and Muscat. The airline plans to extend its international operations to other cities in North America, Europe, Africa and Asia in phases with the introduction of wide-body aircraft into its fleet. Since its inception in May 1993 to end-September 2007, Jet Airways has flown over 76.7 million passengers.
About Jet Lite
Jet Lite currently operates a fleet of 24 aircraft, which includes 17 Boeing B737 and 7 CRJs. Jet Lite operates around 135 flights daily. Currently serves 30 destinations within India and also flies to Colombo and Kathmandu.
Disclaimer: Certain statements in this release concerning Jet Airways' future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the aviation business including those factors which may affect our cost advantage, wage increases, our ability to attract and retain professionals, time and cost overruns on various parameters, our ability to manage our international operations, liability for damages, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital, and general economic conditions affecting our industry. Jet Airways may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. Jet Airways does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company." |
|
|
View Our
Archived Press Releases
|
| |
|
|
|
|
|
|
 |
|
