Jet Airways consolidated net profit slumped 95 per cent to Rs 23 crore in Q4 FY 17 on a year-on-year basis owing to higher expenses. In the same period last fiscal the airline made a Rs 426 crore profit.
Revenue from operations grew 3.5 per cent to Rs 5,728 crore driven largely by network optimisation. Jet Airways capacity addition has been limited in comparison with peers. The airline launched new routes in domestic network and improved utilisation of its wide body Airbus A330 and Boeing 777 planes.
An 88 per cent rise in other income (including profit from sale-and-lease-back of planes, and profit from land development) boosted the result. In Q4 FY 2017 Jet Airways earned Rs 310 crore in other income compared to Rs 165 crore in same period in FY 16.
But 59 per cent increase in fuel costs led to a sharp fall in profit. Fuel expenses rose to Rs 1581 crore in Q4 FY 17 as against Rs 999 crore in same period last year.
"The past year has been extremely challenging for both domestic and international markets. Notwithstanding the growth in traffic in the domestic market, the downward pressure on yields continued despite rise in oil prices. We achieved positive results through our relentless effort to streamline operations, improve productivity and business performance, enabling us to reduce our debt by Rs 1,902 crores during this year, despite weakening demand in certain international markets, especially Gulf," Jet Airways chairperson Naresh Goyal said in a statement.
"Our strategy of creating and leveraging multiple gateways to facilitate seamless travel has started to show results. We are committed to prioritise and invest in network enhancement, superior guest experience and operational efficiencies at all touch points to ensure sustainable growth and value addition for stakeholders," he added.
Jet to order 100 planes, says CAPA
"Jet's existing order for seventy-five 737 MAX aircraft, which are scheduled for delivery between 2018 and 2023, will mostly be used for replacement. At present half of its narrow body fleet is aged nine years or older. Meanwhile, the new order for 100 aircraft is intended for expansion," CAPA said in its FY 2018 outlook.