India’s second-largest airline hurt by higher fuel expenses
Mumbai : Jet Airways’ standalone net profit plunged a sharp 91 per cent to Rs 49.63 crore in the September quarter owing to a massive fall in other income.
The Naresh Goyal-owned private carrier had posted a net profit of Rs 549.02 crore in the same period of the previous financial year.
The country’s second-largest airline said that total sales also declined to Rs 5,758.18 crore in the quarter under review, from Rs 5,772.79 crore in the preceding fiscal, Jet Airways said in a regulatory filing on Thursday.
Other income fell 59 per cent to Rs 131.57 crore in the reporting quarter, from Rs 319.58 crore a year-ago period, according to the regulatory filing.
Fuel costs grew 17% to Rs 1525.66 crore, the firm added. “The weak demand in the Gulf continues, whilst low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices,” said the airline’s Chief Executive Officer Vinay Dube.
Jet Airways stock finished 2.04% higher on the Bombay Stock Exchange (BSE) on Thursday, while the benchmark Sensex gained 1.08% at the end of the day’s trade.
Earlier in the week, the full service carrier announced that it has started a seven-day fare sale with discounts of up to 30 per cent across its international network. The airline said it will offer discounted fares on the prevailing lowest base fare for travel in both premiere and economy classes.
“The seven-day fare sale from December 5-11, 2017, will be valid for international travel commencing from January 15, 2018 onwards,” the airline said in a statement. The airline operates flights to key international destinations in South East Asia, South Asia, Middle East, Europe and North America beyond India.