Jet Airways Q1 profit slumps 44% to Rs 126 crore

Standalone total income from operations fell to Rs 5,112.02 crore as against Rs 5,220.11 crore in Q1 of 2015-16

Jet Airways on Friday reported a 44 per cent decline in consolidated net profit at Rs 126 crore in the three months to June as total income from operations fell amid "intense competition" in the industry.

The full service carrier had a net profit of Rs 226 crore in the year-ago period.

Total revenue dropped to Rs 5,406 crore in the first quarter of current financial year from Rs 5,508 crore in the same period a year ago, it said in a release.

"Net profit of Q1 FY16 included an exceptional item on account of contribution receivable from lessors," it added.

On a standalone basis, the carrier saw its net profit plunged 53 per cent to Rs 103.14 crore. In the year-ago period, the same stood at Rs 221.70 crore, as per a filing to the exchange.

Standalone total income from operations fell to Rs 5,112.02 crore as against Rs 5,220.11 crore in the first quarter of 2015-16.

"Due to the intense competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue in Q2," Jet Airways Chairman Naresh Goyal said in the release.

He said the airline has been able to report lower non- fuel cost in spite of weakening of the rupee against US dollar by almost six per cent, among others.

Noting that the airline has strengthened its core operations and achieved better capacity utilisation, Goyal said strategic partnership with Etihad Airways continues to strengthen.

"In Q1, codeshare traffic delivered by Etihad Airways and other Etihad Airways Partner airlines to Jet Airways grew by 41 per cent," he added.

Overall codeshare traffic rose 13 per cent to 5,51,859 passengers in the latest June quarter.

"Jet Airways continues to grow its traffic over the Abu Dhabi gateway, complementing the Etihad Airways network. Together, we are the largest combined scheduled operator of flights to and from India with a 20 per cent market share," Jet Airways Vice Chairman James Hogan said.

Currently, the airline has 117 aircraft fleet that includes Boeing 777-300 ERs and Airbus A330-200/300.