Jet Airways Posts Loss of INR 4,955 mn
OREANDA-NEWS. Jet Group Total Revenue (combined) of INR 44,840 million (US 826 million) in Q4 FY13 versus INR 46,343 million (USD 911) in Q4 FY12
Passenger carried 5.21 million in Q4 FY13 versus 6.03 million for Q4 FY12.
EBITDAR of INR -2,415 million (USD 44.5 million) for Q4 FY13
FY 2013
Jet Group FY13 Total Revenue (combined) of INR 190,800 million (USD 3,515.8) million up by 12.9%
The total no of passengers carried 20.7 million in FY13 versus 22.1 million in FY12.
EBITDAR of INR 21,994 million (USD 405.2 million) for FY13, EBITDAR margin 11.7%
Highlights for quarter ended March 31, 2013 vs. March 31, 2012 – JET AIRWAYS STANDALONE
Operational
System-wide ASKMs of 8,999 million for Q4 FY13 versus 10,129 million for Q4 FY12.
System-wide RPKMs of 7,293 million for Q4 FY13 versus 8,403 million for Q4 FY12.
System wide seat factor of 81.0% versus. 83.0%
4.3 million Revenue passengers carried for Q4 FY13 versus 4.8 million for Q4 FY12.
Financial
Revenue of INR 39,905 million or (USD 735.1 million) in Q4 FY13 versus INR 40,927 million or (USD 804.5) in Q4 FY12.
Fuel Cost of INR 16,547 million (USD 304.8 Million) for Q4 FY13 versus INR 18,225 million (USD 358.2 million) for Q4 FY12.
Loss before tax INR 5,023 million or (USD 92.5) million versus loss of INR 2,837 million or (USD 55.8) million.
Loss after tax INR 4,955 million or (USD 91.3) million versus loss of INR 2,981 million or (USD 58.6) million.
Exchange rate used 1 USD = INR 54.285 for current quarter and 1 USD = INR 50.875 for previous year same quarter
Highlights for the year ended March 31, 2013 vs. March 31, 2012 – JET AIRWAYS STANDALONE
Operational
System-wide ASKMs of 37,428 million for FY13 versus 38,643 million for FY12.
System-wide RPKMs of 29,502 million for FY13 versus 30,643 million for FY12.
System wide seat factor of 78.8% for FY13 versus 79.3% for FY12.
16.9 million Revenue passengers carried for FY13 versus 17.3 million for FY12.
Financial
Revenue of INR 170,687 million or (USD 3,144.3 million) up by 13.8%
Fuel Cost INR 69,920 million (USD 1,288.0 million) in FY13 versus INR 66,307 million (USD 1,303.3 Million) in FY12 up by 5.4%
EBITDAR of INR 21,350 million or (USD 393.3 million) in FY13 versus INR 11,314 million or (USD 222.4 million) in FY12.
EBITDAR Margin at 12.7% in FY13
Loss before tax INR 4,855 million or (USD 89.4) million in FY13 versus loss of INR 12,553 million or (USD 246.7) million in FY12.
Highlights for the quarter ended March 31, 2013 vs. March 31, 2012 - JETLITE
Achieved seat factor of 74.7% in Q4 FY13 versus 78.4% in Q4 FY12
Revenue of INR 4,935 million or (USD 90.9) million in Q4 FY13 versus INR 5,415 million (USD 106.4) million for Q4 FY12.
Fuel cost INR 2,559 million (USD 47.1) versus INR 3,077 million (USD 60.5 ) million in Q4 FY’12
Loss before tax INR 2,481 million or (USD 45.7) million versus loss of INR 564 million or (USD 11.1) million
Loss after tax INR 2,489 million or (USD 45.8) million versus loss of INR 564 million or (USD 11.1) million.
Highlights for the year ended March 31, 2013 vs. March 31, 2012 - JETLITE
Achieved seat factor of 74.8% in FY13 versus 77.9% in FY12
Revenue of INR 20,114 million or (USD 370.5) million in FY13 versus INR 19,039 million or (USD 374.2) million in FY12.
Fuel cost INR 10,574 million (USD 194.8) in FY13 versus INR 11,457 million (USD 225.2) million in FY12.
EBITDAR of INR 644 million or (USD 11.9) million in FY13 versus EBITDAR of INR 372 million (USD 7.3) million in FY12.
Loss before tax INR 2,946 million or (USD 54.3) million versus loss of INR 1,846 million or (USD 36.3) million.
Loss after tax INR 2,953 million or (USD 54.4) million in FY13 versus loss of INR 1,840 million or (USD 36.2) million in FY12.
Exchange rate used 1 USD = INR 54.285 for current quarter and 1 USD = INR 50.875 for previous year same quarter
Management Discussion and Analysis (for the quarter)
Operating results for the quarter was impacted due to high fuel prices, rupee depreciation and increase in cost of operations. Temporary slowdown in demand has resulted into capacity reduction. This has resulted in aircraft on ground. Few of them were redeployed to profitable international routes.
The impact of aircraft on ground for the quarter was INR 903 million (US USD 16.6 million). There were instances of aircraft on ground during the year; the impact of this for the year was INR 1,889 million (USD 34.8 million).
The result also includes onetime exceptional items amounting to INR 3,102 million (USD 127.7 million).This is mainly due to maintenance events, Payroll arrears, SFIS reversal on account of expiry of licence and loss on exchange fluctuation.
Additionally we also had certain credits on account of compensation credit and Profit on sale and lease back of London slots.
Mr. Hameed Ali, acting Chief Executive Officer, Jet Airways (I) Ltd said, “Sluggish economic scenario and high yields have resulted in decrease in market demand and capacity. Rupee depreciation, high fuel prices, increase in Landing & navigation costs and Increase in Cost of operations including impact of onetime cost and aircraft on ground has impacted the quarterly results.
As India's premier airline, we continue to strive in our endeavor to enhance our guest experience through various strategic marketing and customer friendly initiatives. This will help us to achieve customer delight, which in turn will further help Jet Airways build its industry benchmarks of service excellence and quality, with convenience and comfort.”
Highlights of Jet Airways Domestic operations Q4 FY13
Revenues from Domestic operations of INR 16,028 million (USD 295.3 million) accounted for 40.2% of total revenues. Seat factors remained at around 74.8% for Q4 FY13 versus 77.1% for Q4 FY12. Capacity in terms of ASKM of 3,188 million in Q4FY13 versus 3,493 million in Q4 FY12
Highlights on International operations Q4 FY13
Revenues from International operations of INR 23,877 million (USD 439.8 million) accounted for 59.8% of total revenues. Achieved seat factor of 84.4% in Q4 FY13 versus 86.0% in Q4 FY12.The EBITDAR margins are at 16.5% in Q4FY13 versus 12.6% in Q4 FY12.
Outlook
Rupee depreciation and increase in cost of operations, especially landing & navigation cost continues to be a cause of concern. Significant increases in Landing & navigation charges at key metros will lead to airlines passing on the costs to the passenger, which may affect the passenger growth in short term.
The demand growth is expected to climb up to a 10-12% range. As against this, capacity increases are expected to be moderate in the industry. Airlines are regaining pricing power and industry load factors are starting to go up.
We continue in our endeavor in cutting costs and improving productivity. Initiatives such as enhancing ancillary revenues, discontinuing loss making routes, sale/sale and lease back of aircraft will help us in the in medium to long term.
Our International business continues to show healthy trends which are reflecting in the seat factors. We are selectively adding flights to profit making markets such as Gulf & Middle East and ASEAN routes and discontinuing loss making routes.
The proposed Jet-Etihad deal will bring immediate revenue growth and cost synergy opportunities for both the airlines and will help strengthen Jet Airways balance sheet.
Key cost benefits and synergies in fleet acquisition, maintenance, joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support will come through. Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and consolidation of guest loyalty programs.
The alliance will bring significant guest benefits with expanded code sharing, creating a combined network of 140 destinations.
All of the above will result in accelerated return to sustainable profitability.
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