Stock Market

Jet Airways up 6%, investors cheer 1st annual profit after 8 yrs

Chillicious Team

Shares of Jet Airways surged 6 percent intraday on Friday after its posted first annual profit after 8 years. Lower fuel expenses and cost control measures aided the airline’s performance in FY16.

The airline company’s net profit zoomed to Rs 397 crore in fourth quarter of FY16 from a loss of Rs 1729 crore in corresponding quarter last fiscal. During the quarter, its fuel expenses fell 25 percent at Rs 999 crore against Rs 1334 crore in year-ago period.

Its total income, in Q4, rose 3.6 percent at Rs 5245.3 crore compared to Rs 5064 crore year-on-year. Other income in the period was at Rs 206 crore versus Rs 225 crore (YoY).

In Q4, its EBITDA stood at Rs 815.9 crore from EBITDA loss of Rs 340 crore (YoY).

“Jet Airways declared a highest ever annual profit in its history for the year ended March 31, 2016, and thereby achieved return to profitability a year earlier than the target set in its turnaround plan two years ago. The consistently strong financial performance has enabled Jet Airways to reduce its debt by Rs 1680 crore during FY16,” says a company statement.

Passenger revenues for Q4 FY16 rose by 3.1 percent to Rs  4,686 crore from Rs 4543 crore in Q4 FY15.

In FY16 its cost per available seat kilometer (CASK) excluding fuel dropped by 3.2 percent to Rs 3.26 in FY16.

At 12:40 hrs Jet Airways was quoting at Rs 617.50, up Rs 10.95, or 1.81 percent on the BSE.

Posted by Nasrin Sultana