OREANDA-NEWS. May 24, 2012. Editor’s Synopsis (Jet Airways and Jetlite combined):

Q4 FY 2012
 Jet Group Q4 FY12 Total Revenue (combined) of INR 46,389 million (USD 911.8 million) up by 24.3%
 Q4 FY12 passenger growth of 23.5% vs same period last year
 EBITDAR of INR 4,124 million (USD 81.1 million) for Q4 FY12, EBITDAR margin 9.0%

FY 2012
 Jet Group FY12 Total Revenue (combined) of INR 168,980 million (USD 3,321) million up by 14.8%
 The total no of passengers carried increased by 16.3% over the last year.
 EBITDAR of INR 11,686 million (USD 229.7 million) for FY12, EBITDAR margin 7.0%.

Highlights for quarter ended March 31, 2012 vs. March 31, 2011 – JET AIRWAYS STANDALONE

Operational
System-wide ASKMs of 10,129 million, up 15.0%
System-wide RPKMs of 8,403 million, up 22.4%
System wide seat factor of 83.0% vs. 77.9%
4.82 million revenue passengers carried, up 29.2%


Financial
Revenue of INR 40,927 million or USD 804.5 million up by 24.4%
Fuel Cost of INR 18,225 million (USD 358.2 Million) for Q4 FY12 vs INR 12,797 million (USD 287.0 Million) for Q4 FY11 up 42.4%.
EBITDAR of INR 3,698 million or USD 72.7 million in Q4 FY12 versus INR 3,775 million or USD 84.7 million in Q4 FY11.
EBITDAR Margin at 9.2% in Q4 FY12
Loss before tax INR 2,837 million or (USD 55.8) million versus loss of INR 1,872 million or USD 42.0 million
Loss after tax INR 2,981 million or (USD 58.6) million versus loss of INR 1,245 million or USD 27.9 million
Exchange rate used 1 USD = INR 50.875 for current quarter and 1 USD = INR 44.595 for previous year same quarter


Highlights for the year ended March 31, 2012 vs. March 31, 2011 – JET AIRWAYS STANDALONE

Operational
System-wide ASKMs of 38,643 million, up 12.6%
System-wide RPKMs of 30,643 million, up 13.6%
System wide seat factor of 79.3% vs. 78.6%
17.31 million revenue passengers carried, up 18.0%


Financial
Revenue of INR 149,941 million or USD 2,947.2 million up by 15.9%
Fuel Cost INR 66,307 million (USD 1,303.3 Million) vs INR 43,667 million (USD 979.2 Million) for FY11 up 51.8%
EBITDAR of INR 11,314 million or USD 222.4 million in FY12 versus INR 25,365 million or USD 568.8 million in FY11
EBITDAR Margin at 7.6% in FY12
Loss before tax INR 12,553 million or USD 246.7 million versus Profit of INR 465 million or (USD 10.4) million


Highlights for the quarter ended March 31, 2012 vs. March 31, 2011 - JETLITE

Achieved seat factor of 78.4% in Q4 FY12 versus 77.1% in Q4 FY11
Revenue of INR 5,461 million or (USD 107.3) million in Q4 FY12 versus INR 4,413 million (USD 99.0) million for Q4 FY’11.
Fuel cost INR 3,077 million (USD 60.5) versus INR 2,437 million (USD 54.6 ) million up by 26.3%
EBITDAR of INR 425 million or USD 8.4 million in Q4 FY12 versus negative EBITDAR of INR 262 million or USD 5.9 million in Q4 FY11
Loss before tax INR 564 million or (USD 11.1) million versus loss of INR 752 million or USD 16.9 million
Loss after tax INR 564 million or (USD 11.1) million versus loss of INR 757 million or USD 17.0 million


Highlights for the year ended March 31, 2012 vs. March 31, 2011 - JETLITE

Achieved seat factor of 77.9% in FY12 versus 79.2% in FY11
Revenue of INR 19,039 million or (USD 374.2) million, versus INR 17,862 million or (USD 400.5) million.
Fuel cost INR 11,457 million (USD 225.2) versus INR 8,006 million (USD 179.5) million up by 43.1%.
EBITDAR of INR 372 million or (USD 7.3) million in FY12 versus EBITDAR of INR 2,293 million (USD 51.4) million in FY11
EBITDAR Margin at 2.0% in FY12
Loss before tax INR 1,846 million or (USD 36.3) million versus loss of INR 1,070 million or USD 24.0 million
Loss after tax INR 1,840 million or (USD 36.2) million versus loss of INR 1,075 million or USD 24.1 million
Exchange rate used 1 USD = INR 50.875 for current quarter and 1 USD = INR 44.595 for previous year same quarter


Management Discussion and Analysis (for the quarter)

 Operating results for the quarter continued to be impacted due to Rupee Depreciation and high fuel cost

 However, increase in fares and strict cost control measures have helped Jet Airways post an operating profit (EBITDAR) of INR 3,698 million for Q4FY12. Full impact of the increase in fares would be seen in Q1FY13.

 The impact of fuel price increase for Jet Group as compared to the same period last year was INR 4,198 Million (USD 93.3)

 Jet Group continues to maintain its leadership position in the Indian aviation industry with the highest market share of 29.3 % for the quarter ending March 2012.

 Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (I) Ltd said, “Rupee depreciation and fuel prices has impacted the quarterly results, however capacity reduction in the industry has helped to raise fares and improve yields. In this hour of rapid change in market dynamics, we continue in our endeavor to enhance guest experience through unique marketing initiatives and social media tools. As part of a strategic rebranding exercise, Jet Airways, India’s premier international airline, had consolidated its low fare service products under the JetKonnect brand to simplify the group’s service proposition and enhance brand recall.”

Highlights of Jet Airways Domestic operations Q4 FY’12

 Revenues from Domestic operations of INR 17,930 million (USD 352.4 million) accounted for 43.8% of total revenues. Domestic traffic for the Jet Airways group grew by 22.6 % for the quarter vs same period last year. As against this, industry traffic grew by 6.6%. Seat factors remained at around 77.1% for Q4 FY’12 versus 73.0% for Q4 FY’12. Capacity in terms of ASKM of 3,493 million in Q4FY12 went up by 19.9% versus Q4 FY11.

Highlights on International operations Q4 FY’12

 Revenues from International operations of INR 22,997 million (USD 452.0 million) accounted for 56.2% of total revenues. Achieved seat factor of 86.0% in Q4 FY12 versus 80.4% in Q4 FY11.The EBITDAR margins are at 12.6% in Q4FY12 versus 16.3% in Q4 FY11.

 For the quarter, International traffic grew by 26.3% for the quarter vs. same period last year.

Outlook

 Capacity reduction in the industry has helped the domestic airlines to increase fares and improve yields. The full impact of the same would be felt in the current quarter. We have not seen any adverse effect on the passenger traffic flow. Rupee depreciation and Crude Oil prices continues to be a cause of concern. This coupled with sluggish economy could impact traffic growth to some extend in the short to medium term as the discretionary spending on travel could get affected.

 We have taken various initiatives to improve our operating efficiency and revenue earning potential. We believe that the JetKonnect rebranding initiative will help us to enhance revenues. Other initiatives such as enhancing ancillary revenues, discontinuing loss making routes, sale of aircraft, restructuring commissions being paid to the agents are few to be named. We believe that these initiatives will help us in medium to long term.

 Our International business continues to be robust and we are achieving healthy seat factors. We are focusing on network rationalization, selectively adding flights to profit making markets such as Gulf & Middle East and ASEAN routes and discontinuation of loss making routes.