Jet Airways narrows Q2 net loss to Rs997m

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India's Jet Airways has narrowed its FY2012/13 second quarter net loss by 86% to Rs997 million ($18.4 million), compared with the same period last year.

The group's overall revenue, however, increased by 24.2% to Rs46.3 billion, while earnings before interest, tax, depreciation, amortisation and restructuring (EBITDAR) increased by more than four times to Rs6.67 billion from Rs1.5 billion.

Jet Airways' revenue rose by 26% to Rs42 billion, while the carrier's EBITDAR more than tripled to Rs6.52 billion from Rs2 billion.

The airline carried 3.69 million passengers and its load factor for the quarter was 75%.

Meanwhile, low-cost subsidiary JetLite narrowed its net loss by 33.7% to Rs663 million from Rs1 billion a year ago. The carrier also recorded a load factor of 69% for the quarter.

Revenue grew by 10.7% to Rs4.4 billion, while the carrier posted an EBITDAR profit of Rs153 million for the period, a reversal of the loss of Rs400 million a year ago.

Domestic passenger traffic for Jet Airways as measured in RPKs decreased by 6.6% for the quarter compared with same period last year and this resulted in a load factor of 65.6%. International passenger traffic for the carrier, meanwhile, fell by 2.1% for the quarter and this resulted in a load factor of 79.7%.

"Improvement in yields has helped the group to post an operating profit, however, lean season, slowdown in industry passenger traffic because of weakened economic scenario, high fuel prices coupled with high rupee depreciation versus the dollar has pulled the overall results down," says its chief executive Nikos Kardassis.

The carrier aims to discontinue loss-making routes and selectively introduce additional flights or new flights on the sectors contributing to the bottom line, adds the airline.

The carrier also expects cost reduction initiatives and the sale and leaseback of aircraft in the coming quarters to improve its bottom line and generate further cash.