OREANDA-NEWS. May 19, 2011.  Profit Before Tax of INR 466 Mio for FY 11 vs Loss of INR 4,676 Mio for FY10

Editor’s Synopsis (Jet Airways and Jetlite combined):

 Q4 FY 2011
Jet Group Q4 FY11 Total Revenue (combined) of INR 37,295 million (USD 836.3 million) up by 11.7%
Q4 FY11 passenger growth of 18% vs same period last year
EBITDAR of INR 3,169 million (USD 71.1 million) for Q4 FY11, EBITDAR margin 8.7 %

FY 2011
Jet Group FY11 Total Revenue (combined) of INR 147,372 million (USD 3,305) million up by 20.3%
The total no of passengers carried increased by 21.4% over the last year
EBITDAR of INR 27,099 million (USD 607.7 million) for FY11, EBITDAR margin 18.7%.

Highlights for quarter ended March 31, 2011 vs. March 31, 2010 – Jet Airways standalone

 Operational 
System-wide ASKMs of 8,809 million, up 13.5%
System-wide RPKMs of 6,865 million, up 12.5%
System wide seat factor of 77.9% vs. 78.6%
3.73 million revenue passengers carried, up 15.1%

Financial
Revenue of INR 32,881 million or USD 737 million up by 14.3%
Fuel Cost INR 12,797 million (USD 287Million) vs INR 8,463 million (USD 188.5 Million) for Q4 FY10 up 51%
EBITDAR of INR 3,433 million or USD 77.0 million in Q4 FY11 versus INR 6,877 million or USD 153.2 million in Q4 FY10
EBITDAR Margin at 10.6% in Q4 FY11 versus 24.3% in Q4 FY10
Loss before tax INR 1,872 million or (USD 41.9) million versus profit of INR 586 million or USD 13.1 million
Loss after tax INR 1,245 million or (USD 27.9) million versus profit of INR 586 million or USD 13.0 million


Exchange rate used 1 USD = INR 44.595 for current quarter and 1 USD = INR 44.90 for previous year same quarter.


Highlights for the year ended March 31, 2011 vs. March 31, 2010 – Jet Airways standalone

 Operational 
System-wide ASKMs of 34,323 million, up 17.4%
System-wide RPKMs of 26,972 million, up 19.1%
System wide seat factor of 78.6% vs. 77.4%
14.67 million revenue passengers carried, up 21.8%


Financial
Revenue of INR 129,510 million or USD 2,904 million up by 22%
Fuel Cost INR 43,667 million (USD 979.2 Million) vs INR 31,517 million (USD 701.9 Million) for Q4 FY10 up 39%
EBITDAR of INR 24,853 million or USD 557.3 million in Q4 FY11 versus INR 20,954 million or USD 466.7 million in Q4 FY10 up by 18.6%
EBITDAR Margin at 19.5% in Q4 FY11 versus 20.0% in Q4 FY10
Profit before tax INR 466 million or (USD 14.9) million versus loss of INR 4,676 million or (USD 104.1) million

Highlights for the quarter ended March 31, 2011 vs. March 31, 2010 – JetLite


Achieved seat factor of 77.1% in Q4 FY11 versus 75.9% in Q4 FY10
Revenue of INR 4,413 million or (USD 99) million versus INR 4,620 million (USD 102.9) million for Q4 FY’10
Fuel cost INR 2,437 million (USD 54.6) versus INR 1,463 milion (USD 32.6 ) million up by 67%
EBITDAR of (INR 264) million or USD (5.9) million in Q4 FY11 versus EBITDAR of INR 1,191 million or USD 26.5 million in Q4 FY10
Loss before tax INR 752 million or (USD 16.9) million versus profit of INR1,764 million or USD 39.3 million
Loss after tax INR 757 million or (USD 17) million versus profit of INR 1,662 million or USD 37 million

Highlights for the year ended March 31, 2011 vs. March 31, 2010 – JetLite


Achieved seat factor of 79.2% in Q4 FY11 versus 75% in Q4 FY10
Revenue of INR 17,862 million or (USD 400.5) million, versus INR 16,194 million or (USD 360.7) million
Fuel cost INR 8,006 million (USD 179.5) versus INR 6,067 milion (USD 135.1 ) million up by 32%
EBITDAR of INR 2,245 million or (USD 50.3) million in Q4 FY11 versus EBITDAR of INR 2,733 million or USD 60.9 million in Q4 FY10
EBITDAR Margin at 12.8% in Q4 FY11 versus 17.5% in Q4 FY10
Loss before tax INR 1,070 million or (USD 24) million versus profit of INR 565 million or USD 12.6 million
Loss after tax INR 1,075 million or (USD 24.1) million versus profit of INR 462 million or USD 10.3 million

Management Discussion and Analysis (for the quarter)

Jet airways continues to improve its cost per seat kilometre and this has resulted in reduced Cost per ASKM (excluding fuel) by 3.7% due to strict cost control measures implemented across various areas of the business along with effective route rationalising exercises.

This has resulted in Jet Airways posting an operating profit (EBITDAR) of INR 3,169 million for Q4 FY 2011 despite a 32% increase in fuel prices as compared to the same period last year. The Fuel cost was 39% of the total costs versus 32% of Q4 FY 2010.

 During the period, there was an unprecedented increase in prices of fuel which airlines were not able to pass on to the customer fully. Though airlines did take increases in Fuel surcharges, the full impact of the same will come through only in the next quarter. As such, the operating performance for the quarter has been significantly impacted by such fuel price increases.

 The impact of fuel price increase for Jet Group as compared to the same period last year was INR 3,461 Million (USD 77.62)

 The quarter results were also impacted on account of certain one time/ exceptional items like Service tax demands amounting to Rs. 58 crores (USD 13.2 million). Excluding the same, the loss for the quarter would have been lower.

 The Jet Group continues to maintain its leadership position in the Indian aviation industry with the highest market share of 25.4 % for the quarter ending March 2011.

 Our on time performance for the quarter as a whole for Jet Airways Domestic operation was 91.1% and for Jetlite 85.2%, we continue to be number one airline in OTP as well.

 Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (I) Ltd said, 'While we may not be able to impact external factors, our relentless focus remains on improving efficiencies and productivity in our operations. Airlines across the world have been impacted by the rude crude shock lately and Jet Airways is no exception. Though we would have liked to pass through all of the fuel price increases, it was not possible to do that in the short term.

 Given the current circumstances, we are satisfied with our results and more importantly with our industry leading operating performance in terms of On Time Performance. Also, our International growth and seat factors continue to improve constantly which is a testimony to the growing emergence of the airline, as the preferred choice for guests to and from the Indian subcontinent.'

 Highlights of Jet Airways Domestic operations Q4 FY’11

Domestic operations accounted for 41.8% of total revenues INR 13,729 million (USD 307.9 million). Domestic traffic for the Jet Airways group grew by 19 % for the quarter vs same period last year. As against this, industry traffic grew by 21%.


 Seat factors remained at around 73% for Q4 FY’10 & Q4 FY’11. Capacity in terms of ASKM of 2,914 million in Q4FY11 went up by 12% versus Q4 FY10.

 Highlights on International operations Q4 FY’11


International operations accounted for 58.2 % of total revenues INR 19,153 million (USD 429.5 million). Achieved seat factor of 80.4% in Q4 FY11 versus 81.6% in Q4 FY10.The EBITDAR margins are at 16.2% in Q4FY11 versus 23% in Q4 FY10.

 The International business of Jet Airways has now posted several consecutive quarters of consistent growth in terms of SF% of above 80% and increase in the capacity in terms of ASKMs reflecting the growing impact of our network synergies, major strategic international code shares and customer centric product and service focus.

 For the quarter, International traffic grew by 18.1% for the quarter vs. same period last year.

 Outlook


 The dramatic rise in crude oil prices severely impacted the quarter in question and also the month of April. In May 2011, crude oil prices have cooled off to some extent and should help airlines improve margins. Also, the full impact of all the fare increase and surcharge increases will come through only in the current quarter.

 To the extent crude oil prices and fares continue to remain higher, it could impact some traffic growth in the short term though the medium term growth outlook remains intact. This is because of the fact that due to other macro economic conditions, discretionary spending on travel could get affected in the short term. The capacity growth in the market continues to be manageable but traffic growth in the short term is slightly sluggish.

 Our International business continues to be robust and we are achieving healthy seat factors. The routes to Milan and Johannesburg have matured significantly since inception and are currently achieving load factors in the 70% zone. We have also added new short haul flights to Gulf and Middle East which will boost the network flows and revenues. With the return of the 2 B777 aircraft next quarter, we intend to upgrade some of our A330 services to a B777 operation and the aircraft which gets released will be used to start up Manila and other Gulf operations.