Mumbai: Jet Airways on Friday reported a higher net loss of Rs 495.53 crore for the fourth quarter ended March 31 compared to loss of Rs 298.12 crore in the same period year-ago on account of high fuel prices and weak rupee.
    
Earlier in the day, the company's shareholders approved the sale of 24 percent stake to Abu Dhabi-based Etihad for Rs 2058 crore. Total income from operations declined around three percent to Rs 3,921.92 crore in the March quarter from Rs 4,041.61 crore in the year ago period, Jet Airways said a statement.
    
For the full year ended March 31, 2013, the airline reported a net loss of Rs 485.50 crore against Rs 1,236.1 crore in the same period last year. "Operating results for the quarter was impacted due to high fuel prices, rupee depreciation and increase in cost of operations," the airline said.
    
Besides, temporary slowdown in demand has resulted into capacity reduction it said adding this has resulted in aircraft on ground, through few of them were redeployed to profitable international routes.
    
The airline carried less number of passengers at 43 lakh during the quarter as against 48 lakh passengers in Q4 FY'12. Besides, it also recorded a lower seat factor at 81 percent as compared to 83 percent a year-ago period.
    
The revenue from domestic operations during the reporting quarter stood at Rs 1,602 crore and accounted for 40.2 percent of total revenues. As against this, the revenues from international operations stood at Rs 2,387 crore and accounted for 59.8 percent of total revenues in Q4'FY13.
    
"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," Jet Airways said.
    
The impact of aircraft on ground for the quarter was Rs 90.3 crore (USD 16.6 million). There were instances of aircraft on ground during the year; the impact of this for the year was Rs 188.9 crore (USD 34.8 million).
    
The result also includes one-time exceptional items amounting to Rs 310 crore mainly due to maintenance events, payroll arrears and loss on exchange fluctuation among others, the airline 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," Jet Airways acting chief executive officer Hameed
Ali said. Shares of the company ended the day 3.69 percent lower at Rs 562.70 on the BSE.

Stating that the rupee depreciation and increase in cost of operations, especially landing and navigation cost continues to be a cause of concern, the airline said significant increases on this account at key metros will lead to airlines passing on the costs to the passenger, which may affect the passenger growth in short term.
    
Expecting a surge in the demand in 10-12 percent range, the airline said "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."
    
Jet Airways expects initiatives such as enhancing ancillary revenues, discontinuing loss making routes, sale/sale and lease back of aircraft will help it in the medium-to-long term.
    
The airline also expects that its stake sale deal, which is awaiting regulatory approvals, will bring immediate revenue growth and cost synergy opportunities for the two alliance partners and will help strengthen Jet Airways balance sheet, the statement said.
    
The alliance will bring significant guest benefits with expanded code sharing, creating a combined network of 140 destinations, it said. According to the airline, key cost benefits and synergies in fleet acquisition, maintenance, joint purchasing opportunities for fuel among others 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, Jet said in the statement.

(Agencies)

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