Jet Airways saw its net profit for the second quarter of financial year 2017-18 fall to Rs 49.63 crore in comparison to Rs 549.02 crore recorded last year for the corresponding period last fiscal. Despite posting a profitable quarter, the second-largest air carrier saw its profit fall by 91 per cent in the September quarter of the current fiscal.
The fall in the profit has been attributed to the inability to offset the rise in jet fuel prices. "The weak demand in the Gulf continues, whilst low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices," Jet Airways chief executive Vinay Dube said in a company statement.
The revenue from operations grew three per cent year-on-year to Rs 5627 crore in the quarter that ended on September 30 this year, as against Rs 5453 crore for the same period last fiscal. On the other hand, other income saw a steep decline of 59 per cent in the last quarter to Rs 131 crore from Rs 319.58 crore in year-ago period.
In the Q2 of 2017-18, the Naresh Goyal-owned airlines saw its total sales decline to Rs 5,758.18 crore in the quarter as compared to Rs 5,772.79 crore in same quarter of previous fiscal. Meanwhile, the expenses rose to Rs 5,709 crore as opposed to Rs 5,224 crore seen for the same period in the previous financial year, as per a BSE filing.
The private air carrier, however, is planning to expand its domestic footprint in India and might bid for the up-for-sale Air India. Government is looking for takers for the debt-laden state carrier.
Meanwhile, shares of Jet Airways (India) Ltd rose 2.04% to Rs696.75 on the BSE while the benchmark Sensex surged 1.08% to end the day 32,949.21 points on Thursday.