Jet Airways Faces Turbulence In December Quarter

Jet Airways Ltd. on Friday posted a nearly 70 percent fall in its third quarter net profit at Rs 142.38 crore as steep rise in fuel costs and other expenses took a toll on its bottom-line. The full service carrier had a net profit of Rs 467.11 crore in the year-ago period.

According to a filing to the Bombay Stock Exchange Ltd. (BSE), Jet Airways' total income from operations stood at Rs 5,478.07 crore in the October-December quarter of the current fiscal. The same was at Rs 5,443.97 crore in the corresponding period a year ago.

In the latest quarter under review, the airline saw its fuel costs climb to Rs 1,428.89 crore which also pushed the total expenses higher. The expenses went up to Rs 5,405.32 crore in the December quarter.

Jet Airways Chairman Naresh Goyal said various initiatives undertaken by the company in relation to cost synergies, revenue management opportunities and ancillary revenues have resulted in significant improvement in operating cash flow.

"Further, our continued thrust to improve operational efficiency and initiatives to raise funds are expected to result in sustainable cash flows," he said.