OREANDA-NEWS. February 01, 2013. Higher yields, cost & network initiatives help Jet Airways Group post PAT of INR 931 million for Q3FY13 vs. loss of INR 1,228 million in Q3FY 12.


Editor’s Synopsis (Jet Airways and Jetlite combined):

 Jet Group reported Profit after tax of Rs. 931 million or USD 16.9 million for Q3 FY13 versus Loss after tax of Rs. 1,228 million or USD 23.1 million for Q3 FY12

 Q3 FY13 Total Revenue (combined) of Rs. 47,699 million or USD867.3 million, up by 5.5%,

 EBITDAR margin for Q3 FY13 of 20.1% versus 6.2% for Q3 FY12

Highlights for quarter ended December 31, 2012 versus December 31, 2011 – JET AIRWAYS

Operational

System-wide ASKMs of 9,069 million
System-wide RPKMs of 6,904 million
System wide seat factor of 76.1%
4.05 million revenue passengers carried


Financial

Revenue of Rs. 42,512 million or USD 773.0 million, up 6.6%
EBITDAR of Rs.8,658 million or USD 157.4 million in Q3 FY13 , up 281%
EBITDAR Margin at 20.6% in Q3 FY13 versus 5.8% in Q3 FY12
Profit before tax Rs. 918 million or USD 16.7 million for Q3 FY13 versus Loss before tax Rs. 1,012 or USD 19.1 million in Q3 FY12
Profit after tax Rs. 850 million or USD 15.5 million for Q3 FY13 versus Loss after tax Rs. 1,012 or USD 19.1 million in Q3 FY 12
Average Gross Revenue per Passenger (Yield) up 18.6%


Exchange rate used 1 USD = INR 54.995 for current quarter and 1 USD = INR 53.105 for previous year same quarter

Highlights for quarter ended December 31, 2012 versus. December 31, 2011 - JETLITE

Achieved seat factor of 75.6% in Q3 FY13 versus 78.6% in Q3 FY12
Revenue of Rs. 5,187 million or USD 94.3 million
EBITDAR of Rs. 825 million or USD 15.0 million in Q3 FY13, up 71%
EBITDAR Margin at 16.0% in Q3 FY13 versus 9.1% in Q3 FY12
Profit after tax Rs. 81 million or USD 1.5 million versus Loss after tax Rs. 216 million or USD 4.1 million
Average Gross Revenue per Passenger (yield) up by 17.1%


Management Discussion and Analysis (for the quarter)

 Improvement in yields, decrease in Cost per ASKM ex- fuel has helped to improve operating margins for the quarter. This is despite slowdown in traffic growth, higher fuel prices and impact of a weak rupee as against US dollar. The unrealised exchange loss for the quarter was approximately Rs.480 million for Jet Airways.

 The Company has over the last few months pulled out of loss making routes, redeployed aircraft to other profitable routes. Key routes discontinued over the last few months include BOM – JNB, BRU – JFK, MAA – BRU, which helped in improving overall international performance. This also resulted in instances of aircraft on ground in the short term, the impact of which for the quarter was approximately Rs.550 million. These aircraft will be redeployed in the months to come

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

 “All of our efforts on revenues, costs and network side have resulted in turning around the airline operations. This is despite higher fuel prices and rupee depreciation impact that we have had in the last few months. The combined impact of higher yields and lower costs (ex fuel) have resulted in significantly lowering the breakeven seat factor levels in the business.

 We continue in our endeavor on cost cutting measures, exploring various avenues of ancillary revenues and process improvements across all segments of the business, which will help us improve the business further.

 At Jet Airways we remain committed to consistently improving our legendary warmth, service, reliability and courtesy delivered by an attentive staff to ensure that we achieve customer delight”

Highlights of Jet Airways Domestic operations

 Domestic operations of Rs. 18,659 million or USD 339.3 million accounted for 44% of total revenues.

 Domestic traffic for Jet airways went down by 13.0% for the quarter versus same period last year.

 Seat factor was 72.7% in Q3 FY13 versus 75.2% in Q3 FY12.

The average Gross Revenue per Passenger went up by 19.6% YoY.

 The EBITDAR margins are at 18.3% in Q3FY13 versus 2.8% in Q3 FY12

Highlights on International operations

 International operations of Rs. 23,853 million or USD 433.7 million accounted for 56% of total revenues.

 International traffic for Jet airways went down by 5.1% for the quarter versus same period last year.

 Seat factor was 78.0% in Q3 FY13 versus 79.2% in Q3 FY12.

 The average Gross Revenue per Passenger went up by 13.5% YoY.

 The EBITDAR margins are at 22.4% in Q3FY13 versus 8.1% in Q3 FY12.

Outlook

 The capacity induction in the market has slowed down over the last few months, thereby helping the airlines to maintain higher yields.

 This along with the weak economic scenario has affected the traffic growth in the industry YoY. However, higher yields will help the industry to improve breakevens in short to medium term.

 ATF Prices and rupee depreciation vis-a-vis US dollar continues to be a cause of concern in the short term.

 Q4 passenger bookings show encouraging trends, however it will reflect some seasonality.

 Our International operations continue to achieve seat factor of around 80%

 Sale and Lease back transactions and debt reduction program continues to be on track.