Jet loss more than doubles to Rs 214 cr

Mumbai-based full service carrier Jet Airways’s losses for the third quarter ended December 31, 2008, more than doubled to Rs 214.18 crore, a 135 per cent increase against a loss of Rs 91.12 crore incurred during the same period last year, on account of high fuel and other operating costs and lower load factors.

In a filing to the Bombay Stock Exchange, the company said its total income rose 24.60 per cent to Rs 3,022.83 crore in the quarter under review, from Rs 2,425.98 crore in the year-ago period. The company’s losses for the nine months ended December 31 stood at Rs 455.33 core as against Rs 31.88 crore last year.

“The situation is better than the last quarter and we expect some positives to show in the next quarter. So the worst is probably over, at least for this year. Though the passenger de-growth will continue, fuel costs are expected to go down and will be used effectively by the company,” said Mahantesh Sabarad of Mumbai based Brokerage firm Centrum Broking.

Significantly, Jet’s revenues from international operations were almost double of their domestic revenues and accounted for 56 per cent of their overall passenger and cargo revenue. While their losses from domestic operations increased nine times to Rs 130.7 crore from Rs 14.4 crore year-on-year, their losses from international operations remained stable.

The airline also mentioned that it saved Rs 39.73 crore for the third quarter and Rs 109.38 crore for the nine months ended December 31 due to a change in the accounting method.

Adjustments on foreign currency fluctuations also saved the company Rs 357.91 crore for the third quarter and Rs 1852.27 crore for the nine months ended December 31, respectively. Operationally Jet’s losses for the quarter under review were led by a 20 per cent increase in its aircraft fuel expenses and a 40 per cent increase in other operating expenses.

During the quarter fuel costs, however, went down from Rs 57.06 per litre to Rs 35.09 per litre. Due to lower demand caused by the terror attacks on Mumbai among other things, the company’s average load factors for the quarter came to 66.2 per cent against 69.1 per cent last year, while its breakeven loads stood at 71.6 per cent.