Aviation News Item: 00080

28th Oct 2009

Source: evaint.com

Jet Airways has released figures for the last quarter noting that domestic air traffic market has started to show some signs of recovery in the current quarter; however lean season and low yields have impacted the top line. Domestic industry traffic in Q2 grew by 24 per cent over same period last year.

Capacity in the market is more or less stable now (Industry capacity only grew by 5 per cent), however airlines continued to offer low fares in Q2, which has lead to a decline in average yields. This is lean season impact and typical of Q2 every year. Coupled with this were increases in Fuel costs during this quarter. Fuel prices for the quarter increased by 17.4 per cent as compared with the April to June quarter and this led to an additional cost impact of INR 1,083 million (US$ 22.5 million).

The Company has achieved a seat factor of 75 per cent in the current quarter on "Jet Airways Konnect" (JAK), the single class no frills service introduced from May 2009. As of this date, 27 aircraft (17 B737 and 10 ATR aircraft) that represents close to 2/3rd of Company capacity, are being operated under Jet Airways Konnect brand.

Domestic operations accounted for 38 per cent of total revenues (Rs. 9,134 million US$ 189.9 million) versus 46.8 per cent (Rs. 15,243 million, US$ 324.6) in the second quarter of the previous year. The Company achieved a domestic seat factor of 69.8 per cent in Q2 FY10, versus 66.9 per cent in Q2 FY09. The Company recorded a pre-tax loss on domestic operations of Rs.3,663 million (US$76.1 million) versus a loss of Rs. 2,886 million (US$ 61.4 million) in the same period a year ago.

The revenues from International operations now account for 62 per cent of total revenues (Rs. 14,676 million, US$ 305.1 million) versus 53 per cent (Rs. 17,341 million, US$ 369.2 million) in the second quarter of last year. The Company achieved a seat factor of 80.6 per cent for Q2 FY10 versus 66.0 per cent for Q2 FY09

International operations, as a whole, showed a pre-tax loss of INR 404 million (US$ 8.4 million) versus a pre tax loss of Rs. 2,899 million (US$ 61.7 million) for the same period last year. This still reflects sluggish demand, especially in the premium segment. Achieved seat factor for UK & US routes are in 80s. ASEAN, Gulf and SAARC routes are in mid 70s thereby resulting into an overall seat factor of 80.6 per cent for International operations.

The results for the quarter were impacted by the 5 days of pilots' strike (between September 8, 2009 and September 12, 2009) which resulted in close to 1,300 domestic flights and close to 200 international flights being cancelled. This resulted in an approximate loss of revenues of around Rs. 800 million (US$ 16 million) for the five day period.

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