Jet bleeds more, Q4 loss at Rs 221 cr

During the quarter, the airline incurred a loss of Rs 221.18 crore as against a profit of Rs 88.01 crore in the corresponding quarter last year.  This indicates that the financials have taken a beating in the fourth quarter on account of rising prices of crude oil that has caused an unprecedented increase in the cost of aviation turbine fuel (ATF) which, unlike petrol and diesel, is not subsidised by the government.  ATF forms about 40 per cent of the operational costs of airlines in India. Also, Jet's expansion into the international market is reflected in the results.  This is Jet's consecutive second quarterly loss. The company posted a net loss of Rs 91 crore in the third quarter.  For the full year, revenues rose by 37 per cent to Rs 2,730 crore from Rs 1,990 crore last year. The consolidated audited losses for the company, however, stood at Rs 653.87 crore.  According to a company executive, two-third of the losses have come due to expansion in the international markets, mainly to the Gulf routes and start up operations in the US and Canada, even as the domestic business has stayed stable.  While the occupancy on the international routes declined to 69 per cent for the fourth quarter from 76.6 per cent last year, the foreign operations contributed 42 per cent to the operating revenues at Rs 1,159.8 crore, up by 83.66 per cent from Rs 468.9 crore as compared with the corresponding quarter last year.  According to analysts, the results were more or less expected on account of a lag between a revision in base fare hike and fuel surcharge hike and the rise in fuel costs.  "Airlines have been aggressive in booking passengers in advance to manage working capital requirements but now, they are taking a hit on account of this practice. It might be now possible that the airlines would want to take more bookings for the current months."  The Jet Airways stock fell by 0.3 per cent to close at Rs 517.8 on the Bombay Stock Exchange. The stock, which has already slumped by 48 per cent since the beginning of the year, might drop by another 15 per cent and touch a low of Rs 450 in the current industry scenario.