Jet Airways beats street as Q2 loss narrows sharply

MUMBAI Fri Nov 2, 2012 4:17pm IST

Ground staff guide a Jet Airways aircraft towards a gate on the tarmac at Bengaluru International Airport in Bangalore March 5, 2012. REUTERS/Vivek Prakash/Files

Ground staff guide a Jet Airways aircraft towards a gate on the tarmac at Bengaluru International Airport in Bangalore March 5, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

MUMBAI (Reuters) - Jet Airways India Ltd(JET.NS), India's biggest airline, beat estimates with a 86 percent cut in its second-quarter losses thanks to a jump in operating income, sending its shares as much as 5.5 percent higher.

Jet, which posted its first quarterly profit in 18 months last quarter, has benefited from a shutdown at rival Kingfisher Airlines(KING.NS) which has eased over capacity and allowed other airlines to increase their fares in India's competitive airline industry.

India's airlines have suffered from high fuel costs, below-cost fares in a highly competitive market and tough regulations in one of the fastest growing markets in the world.

"Improvement in yields has helped the group to post an operating profit," Nikos Kardassis, chief executive officer, said in a statement. "However, lean season, slowdown in industry passenger traffic due to weakened economic scenario, high fuel prices coupled with high rupee depreciation versus the dollar has pulled the overall results down."

Kingfisher, saddled with $1.4 billion in debt, has not flown since October 1. It had been steadily cutting flights for the past year, driving passengers to carriers such as Jet, SpiceJet and privately held Indigo.

Jet said its EBITDAR (earnings before interest, tax, depreciation, amortisation and aircraft rent) margin at its domestic operations was 9.3 percent, against a negative margin of 8.1 percent in the year-ago quarter.

The airline will continue its drive to discontinue loss-making routes and add capacity to performing sectors, it said in a statement on Friday.

Jet said its net loss for the quarter to end-September was 997 million rupees, down from 7.14 billion the previous year, thanks to a 26 percent jump in income from operations. Expectations were for a net loss of about 2.7 billion rupees, traders told Reuters.

Shares in the airline, valued at $563 million by the market, closed up 3.1 percent on a Mumbai market that ended 1 percent higher.

(Reporting by Henry Foy; Editing by Robert Birsel)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage