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Jet Air posts Rs 384-cr loss in Q2

This article was posted on Oct 26, 2008 and is filed under Stock News

Mumbai, Oct. 25 Hit by higher fuel costs and the lean season drop in passenger traffic, Jet Airways reported a net loss of Rs 384.5 crore for the second quarter ended September 30 against a net profit of Rs 28.3 crore in the year-ago period.

The losses would have been higher by Rs 879.4 crore, but for the accounting adjustment made in the exchange rate losses. The company said the exchange difference in the foreign currency borrowed for acquisition of fixed assets has been adjusted to the carrying cost of fixed assets. This has been done in compliance with provisions in the Companies Act instead of the earlier practice of following Accounting Standard 11, under which such adjustments would be shown under the profit & loss account.

The total income surged by 45 per cent to Rs 3,258 crore (Rs 2,254 crore). During the quarter, Jet raised fares in August and September and also increased the fuel surcharge. This led to a 33.8 per cent rise in yields. Domestic operations accounted for 48 per cent of operating revenues (Rs 1,501 crore) and international 52 per cent (Rs 1,619 crore).

According to the company, the average rate of ATF for the quarter increased by 69 per cent. Staff cost increased to Rs 357 crore from Rs 286 crore. Though the airline took back 1,900 employes that it laid-off earlier this month, its subsidiary Jetlite had cut staff by 1000.

Jet has deferred its expansion plans in the international market. It will be postponing aircraft deliveries by at least a year and has decided not to replace any of the phased out aircraft. No aircraft orders have been cancelled, the company said.

On the domestic sector the airline expects the market to grow close to 5-10 per cent.

The share closed at Rs 171.50 on the NSE on Friday

source: Businesslines

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