OREANDA-NEWS. November 02, 2012.  Q2 FY13 Total Revenue (combined) of Rs. 46,266 million or USD  875.3 million up by 24.2%,

 EBITDAR of Rs.6,668 million or USD 126.2 million for Q2 FY13 vs. Rs. 1,466 or USD  29.9 million for same period last year, up by 355%

 EBITDAR margin for Q2 FY13 of 14.6% vs. 4.0% for Q2 FY12

Highlights for quarter ended September 30, 2012 vs. September 30, 2011 – JET AIRWAYS

Operational
System-wide ASKMs of 9,075 million
System-wide RPKMs of 6,803 million
System wide seat factor of 75.0%
3.69 million revenue passengers carried


Financial
Revenue of Rs. 41,905 million or USD 792.8 million up by 25.8%
EBITDAR of Rs.6,515 million or USD 123.3 million in Q2 FY13 vs. Rs. 1,867 million or USD 38.1 million in Q2 FY12
EBITDAR Margin at 15.7% in Q2 FY13 vs. 5.7% in Q2 FY12
Loss after tax Rs. 997 million or USD 18.9 million vs. Rs. 7,136 million or USD 145.7 million.

Exchange rate used 1 USD = INR 52.855 for current quarter and 1 USD = INR 48.975 for previous year same quarter

Highlights for quarter ended September 30, 2012 vs. September 30, 2011 - JETLITE

Achieved seat factor of 69.0% in Q2 FY13 versus 74.7% in Q2 FY12
Revenue of Rs. 4,360 million or USD 82.5 million, up by 10.7%
EBITDAR of Rs. 153 million or USD 2.9 million in Q2 FY13 versus negative EBITDAR of Rs. 400 million or USD 8.2 million
EBITDAR Margin at 3.6% in Q2 FY13 vs. negative EBITDAR margin of 10.2% in Q2 FY12
Loss after tax Rs. 663 million or USD 12.5 million versus Rs. 1,008 million or USD  20.6 million

Highlights for half year ended September 30, 2012 vs. September 30, 2011 – JET AIRWAYS

Operational
System-wide ASKMs of 19,360 million
System-wide RPKMs of 15,305 million
System wide seat factor of 79.1%
8.55 million revenue passengers carried, up 7.4%


Financial
Revenue of Rs. 88,273 million or USD 1,670.1 million up by 27.7%
EBITDAR of Rs.13,910 million or USD 263.2 million in Q2 FY13
EBITDAR Margin at 15.9% in H1 FY13
Loss after tax Rs.750 million or USD 14.2 million

Exchange rate used 1 USD = INR 52.855 for current quarter and 1 USD = INR 48.975 for previous year same quarter

Highlights for the half year ended September 30, 2012 vs. September 30, 2011 - JETLITE

Achieved seat factor of 74.5% in H1 FY13
Revenue of Rs. 9,992 million or USD 189.0 million
EBITDAR of Rs. 1,013 million or USD 19.2 million in H1 FY13
EBITDAR Margin at 10.3% in H1 FY13
Loss after tax Rs. 546 million or USD 10.3 million versus Rs. 1,061 million or USD 21.7 million last year


Management Discussion and Analysis (for the quarter)

 Lean season, economic slowdown and consequential dip in industry passenger traffic coupled with high fuel prices and rupee depreciation vis-a-vis the US dollar has affected the overall results of Jet group. Fuel rates increased around 17% YOY, a portion of this was passed on to the passengers in the form of increase in fuel surcharge during the quarter. Full impact of this will be seen from the current quarter. Overall increase in yields have helped the airline to post an operating profit of 6,668 million (USD 126.2 million) versus an operating profit of 1,466 INR Mio (USD 29.9 Mio). Focus on ancillary revenues has started showing results; gone up over 20% YOY.

 There were instances of aircraft on ground, as certain routes were discontinued during the quarter, the impact of this is approximately USD 6 million. These aircraft will be leased out in the next few months.

 In the current scenario, Jet Airways has managed to remain competitive through series of planned steps, such as sale / sale and lease back of aircraft, discontinuing loss making routes and stringent cost control measures. The ongoing initiatives will augment well for the airlines performance in the quarters to come.

 Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (I) Ltd said,

 “Improvement in yields has helped the group to post an operating profit, 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.

 We have focused on removing loss making routes, network rationalisation and selectively adding routes which made economic sense. The result of these initiatives are quite evident from the improvement in operating profit YOY by Rs. 5,202 million (USD 98.4 million) for Jet group.

 We believe and strive for customer satisfaction by investing into effective marketing strategies and proactive initiatives resulting in enhancing our guest experience. Jet airways roots for customer delight while building industry benchmark for service excellence and supreme quality.”

Highlights on Domestic operations

 Domestic operations of Rs. 17,008 million or USD 321.8 million accounted for 41% of total revenues. Domestic traffic for Jet Airways went down by 6.6% for the quarter vs same period last year. (Industry traffic went down by 10.3%) Seat factors are 65.6% in Q2 FY13 and ASKMs are 3,035 million in Q2 FY13 The EBITDAR margin is at 9.3% in Q2 FY13 versus negative EBITDAR margin of 8.1% in Q2 FY12

Highlights on International operations

 International operations of Rs. 24,898 million or USD 471.1 million accounted for 59% of total revenues.
 Over this period, the achieved seat factor on the International routes was consistently around 80% reflecting the maturing nature of the International operations.
 For the quarter, International traffic went down by 2.1% for the quarter vs. same period last year, while we achieved seat factor of 79.7%.
 The EBITDAR margins are at 20.0% in Q2FY13 vs. 13.6% in Q2 FY12

Outlook

 The peak season ahead will help the airline to improve yields further. The forward bookings trends for the quarter are quite encouraging. Our focus remains to discontinue loss making routes and selectively introduce additional flights/ new flights on the sectors contributing to the bottom line. In this ensuing peak season more of business class seats will be on offer.

 Signs of improvement in Crude oil prices and rupee depreciation are seen. We continue with our cost reduction initiatives ex-fuel. Sale / Sale and Lease back of aircraft to be done in the forthcoming quarters. All these should help to improve the bottom line further and generate cash.

 Focus on various avenues of Ancillary revenues should help to boost revenues in the quarters to come.