Shares of Jet Airways have slipped by 8% to Rs 386 per share, their fresh 52-week low on the BSE in early morning trade, after the airline company reported a standalone net loss of Rs 10.36 billion in March quarter (Q4FY18), due to higher fuel cost. It had posted a net profit of Rs 6.02 billion in the same quarter last fiscal.
The country's second-largest airline company by market share, posted 9% year on year growth in revenue from operations at Rs 59.25 billion during the quarter under review, while aircraft fuel expenses surged 31% to Rs 20.63 billion over the previous year quarter.
On consolidated basis, Jet Airways has posted a net loss of Rs 6.36 billion in entire financial year 2017-18 (FY18) against a net profit of Rs 14.98 billion in FY17.
“The Company has incurred a loss during the year and has negative net worth as at 31st March, 2018 that may create uncertainties. However, various initiatives undertaken by the Company in relation to saving cost, optimize revenue management opportunities and enhance ancillary revenues is expected to result in improved operating performance,” Jet Airways said in a note.
Further, our continued thrust to improve operational efficiency and initiatives to raise funds are expected to result in sustainable cash flows addressing any uncertainties, it added.
The airline said while over the last two years airfares have remained flat while fuel prices have doubled. Chief executive officer Vinay Dube said "Financial performance during the quarter was weaker due to the continuing increase in the price of fuel without a corresponding increase in air fares, as well as mark-to-market adjustments due to a weaker rupee.”
At 09:34 am; Jet Airways was trading 6.5% lower at Rs 394 on the BSE, as compared to 0.36% rise in the S&P BSE Sensex. A combined 4.2 million shares changed hands on the counter on the BSE and NSE so far.