OREANDA-NEWS. July 22, 2011.  Editor’s Synopsis (Jet Airways and Jetlite combined): Q1 FY 2012
 Jet Group Q1 FY12 Total Revenue (combined) of INR 40,145 million (USD 898.1 million); up by 14.7%
 Q1 FY12 passenger growth of 13% vs same period last year EBITDAR of INR 3,120 million (USD 69.8 million) for Q1 FY12


Highlights for quarter ended June 30, 2011 vs. June 30, 2010 – JET AIRWAYS STANDALONE

Operational
System-wide ASKMs of 9,319 million, up 14%
System-wide RPKMs of 7,311 million, up 12%
System wide seat factor of 78.5% vs. 79.7%
4.07 million revenue passengers carried, up 14.6%


 Financial
Revenue of INR 35,824 million or USD 801 million versus INR 30,232 million or USD 651 million; up 18.5%
Fuel INR 15,637 million (USD 350 million) vs INR 9,959 million (USD 214 Million) in Q1 FY11; up 57%
EBITDAR of INR 3,286 million USD 74 million in Q1 FY12 versus INR 6,044 million or USD 130 million in Q1 FY11.
EBITDAR Margin at 9.3% in Q1 FY12 versus 20.4% in Q1 FY11
Loss before tax INR 1,568 million or (USD 35.1) million vs profit of INR 35 million or USD 0.8 million
Loss after tax INR 1,232 million or (USD 27.6) million vs profit of INR 35 million or USD 0.8 million

Exchange rate used 1 USD = INR 44.700 for current quarter and 1 USD = INR 46.445 for previous year same quarter

Highlights for the quarter ended June 30, 2011 vs. June 30, 2010 - JETLITE
Achieved seat factor of 80.1% in Q1 FY12 versus 82.5% in Q1 FY11
Total Revenue INR 4,321 million (USD 96.7 million) versus INR 4,758 million (USD 102.4 million) for Q1 FY’11
Fuel cost INR 2,770 million (USD 62.0 million) versus INR 1,889 million (USD 40.7 million) up by 46.6%
EBITDAR of (INR 166) million or USD (3.7) million in Q1 FY12 versus EBITDAR of INR 990 million or USD 21.3 million in Q1 FY11
Loss before tax INR 52 million or (USD 1.2) million versus profit of INR 49 million or USD 1.1 million
Loss after tax INR 53 million or (USD 1.2) million versus profit of INR 49 million or USD 1.1 million


 Management Discussion and Analysis (for the quarter)

 The domestic operating environment continued to be challenging in Q1 largely due to competitive pricing activities. Airlines had, in April 2011, looked at increasing yields by not discounting but the same resulted in muted demand and low seat factors. In May and June 2011, pricing in the market was impacted due to 2 big carriers dropping fare levels below costs which eventually led to lower market fares. Despite such an environment, Jet Airways improved its yield per passenger by over 10% Year over year.

 Q1FY12 also saw steep increase in fuel prices (over Q1 FY11), which consumed all of the increases in revenues during the quarter. It was due to our stringent cost saving measures and regular tactical route rationalisation initiatives that Jet Airways posted operating profits (EBITDAR) of INR 3,286 million for the quarter.

 Our Cost per ASKM (excluding fuel) reduced from INR 1.63 in Q1 FY11 to INR 1.58 in Q1 FY12, a reduction of 3.3%

 The fuel rates increased by 39% as compared to the same period last year and by 12 % as compared to Q4FY11. The Fuel costs for the group were 42% of the total costs in Q1 FY2012 versus 34% in Q1 FY2011. The absolute difference in fuel costs for Jet Group as compared to the same period last year was INR 6,558 Million (USD 147).

 The Jet Group continues to maintain its leadership position in the Indian aviation industry with the highest market share of 25.5 % for the quarter ending June 2011.

 Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (I) Ltd said, “Jet Group has further consolidated its leadership position in Indian skies by carrying a record 2 million guests in the month of May’ 2011 further reiterating the fact that Jet Airways, Jet Airways Konnect and JetLite have all catered to distinct passenger segments.

 It has been Group’s ability to fully anticipate customer and market requirements and consequently customize its product to cater to these requirements that has helped Jet Airways stay ahead. I am certain that our focus to deliver customer delight will further help Jet Airways build its industry benchmarks of convenience and comfort.

 At the same time, our On Time Performance and service delivery has also seen consistent improvements over the last few months, something which we are very proud of. The near term poses some challenge in terms of crude oil prices but I am sure, we will come out of this as a much stronger and smarter airline”

Highlights of Jet Airways Domestic operations Q1 FY’12

 Domestic operations accounted for 43% of total revenues INR 15,462 million (USD 345.9 million). Domestic traffic for the Jet Airways group grew by 12% for the quarter vs same period last year. As against this, industry traffic grew by 15%.


Seat factor for Jet Airways Domestic operations was 74.6% for Q1 FY12 and Capacity in terms of ASKMs was 3,216 million which is up 16% versus Q1 FY11.

Highlights on International operations Q1 FY’12

 International operations accounted for 57% of total revenues INR 20,362 million (USD 455.5 million). We achieved seat factor of 80.5% in Q1FY12 versus 80.1% in Q1FY11.The EBITDAR margins are at 11.2% in Q1FY12.


For the quarter, International traffic grew by 19.6% for the quarter vs. same period last year.

Outlook

 International crude oil prices continue to be in the USD 100 per barrel levels and will impact Q2 numbers as well. For the domestic business, we expect muted growth in capacity over the next few months while demand continues to grow at around 15%. Pricing activities by competition continue and this will put pressure on yields in what already is the weakest quarter of the year.

 In the international business, we enter our strongest months and the forward bookings suggest that the demand and yield growth is strong. We expect to maximize seat factors in Q2 FY12 on account of our ever improving network presence and excellent service levels. High level of fuel price continue to be a cause of concern in international operations as well, however, there is a propensity to marginally increase yields in the current quarter, due to seasonality.