High Fuel Prices & Difficult Pricing Environment Impact Operating Performance - Jet Group
Jet Group Reports Ebitdar Of INR 3,120 Mio For Q1 FY12
Mumbai, Maharashtra, July 25, 2011 /India PRwire/ -- Q1 FY 2012
Jet Group Q1 FY12 Total Revenue (combined) of INR 40,145 million (US$ 898.1 million); up by 14.7%
Q1 FY12 passenger growth of 13% vs same period last year
EBITDAR of INR 3,120 million (US$ 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 US$ 801 million versus INR 30,232 million or US$ 651 million; up 18.5%
* Fuel INR 15,637 million (US$ 350 million) vs INR 9,959 million (US$ 214 Million) in Q1 FY11; up 57%
* EBITDAR of INR 3,286 million US $ 74 million in Q1 FY12 versus INR 6,044 million or US $ 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 (US$ 35.1) million vs profit of INR 35 million or US$ 0.8 million
* Loss after tax INR 1,232 million or (US$ 27.6) million vs profit of INR 35 million or US$ 0.8 million
Exchange rate used 1 US $ = INR 44.700 for current quarter and 1 US $ = 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 (US$ 96.7 million) versus INR 4,758 million (US$ 102.4 million) for Q1 FY'11
* Fuel cost INR 2,770 million (US $ 62.0 million) versus INR 1,889 million (US $ 40.7 million) up by 46.6%
* EBITDAR of (INR 166) million or US$ (3.7) million in Q1 FY12 versus EBITDAR of INR 990 million or US$ 21.3 million in Q1 FY11
* Loss before tax INR 52 million or (US $ 1.2) million versus profit of INR 49 million or US $ 1.1 million
* Loss after tax INR 53 million or (US $ 1.2) million versus profit of INR 49 million or US $ 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 (US $ 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 US$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.
About Jet Airways
Jet Airways currently operates a fleet of 97 aircraft, which includes 10 Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 55 next generation Boeing 737-700/800/900 aircraft and 20 modern ATR 72-500 turboprop aircraft. With an average fleet age of 5.45years, the airline has one of the youngest aircraft fleets in the world. Flights to 75 destinations span the length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Johannesburg, Kathmandu, Kuala Lumpur, Kuwait, London(Heathrow), Milan, Muscat, New York(both JFK and Newark), Riyadh, Sharjah, Singapore, Toronto.
About Jet Airways Konnect
Jet Airways Konnect service operates on key domestic routes, and is designed to meet the needs of the low-fare segment with value-for-money fares. Jet Airways Konnect links seven major metros - Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Ahmedabad and Kolkata - with several destinations across India, operating over 170 flights daily.
About JetLite
JetLite is a subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007. Positioned as an all-economy, no-frills airline, JetLite operates a fleet of 18 Boeing 737 series aircrafts. The airline flies to 27 domestic destinations and 1 international destination (Kathmandu), operating over 110 flights a day, on average.
Disclaimer: "Certain statements in this release concerning Jet Airways' future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the aviation business including those factors which may affect our cost advantage, wage increases, our ability to attract and retain professionals, time and cost overruns on various parameters, our ability to manage our international operations, liability for damages, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital, and general economic conditions affecting our industry. Jet Airways may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. Jet Airways does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company."
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