Jet Airways net plunges 94% in FY07

India’s largest private carrier, Jet Airways Ltd, on Tuesday said it posted a 94% decline in net profit at Rs 28 crore for the fiscal ended March 31, 2007, compared to Rs 452 crore the previous fiscal, weighed down by heavy losses in the first two quarters and higher operating costs. However, total revenues for the current fiscal stood at Rs 7,400 crore, compared to Rs 6,090 crore the previous fiscal. Net profit for the fourth quarter stood at Rs 88 crore, against Rs 227 crore in the corresponding quarter last year, down 61.2%. Operating revenues stood at Rs 1,978.3 crore for the quarter ended March 2007, compared to Rs 1,605 crore for the same period last year. The company’s board has recommended a dividend of 60% (Rs 6 per equity share of Rs 10 each). Jet Airways stock closed marginally higher (0.69%) on the BSE on Tuesday at Rs 808.50. Explaining the slump in profits, Jet Airways CEO Wolfgang Prock-Schauer said, “Overall, the aviation sector is not performing well.

Looking at the current scenario, we have performed better.” The average staff numbers increased from 8,727 to 10,590 on account of the expansion at various levels of operations. New hires among pilots, engineers and cabin crew constituted an increase in the company’s operating costs in the fourth quarter.” However, he added that the average fuel rate was Rs 36.55 a litre in the fourth quarter, compared to Rs 36.05 in the previous year’s fourth quarter. The Jet board has also approved its rights offering of up to $400 million. Further decisions, including pricing, will be taken by a committee of the board, which has been empowered to do so. On the company’s international operations, KG Vishwanath, general manager—finance, said that the company was close to break-even and that international losses are down to $2.5 million from $42 million in the first half of the financial year.

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