As per telegraph –
Naresh Goyal-controlled Jet Airways has posted a net profit of Rs 3.52 crore for the three months ended June 30, while Vijay Mallya’s Kingfisher Airlines has suffered a net loss of Rs 186 crore during the same period.
The contrasting fortunes of the two rivals underscored the fact that Jet Airways has been able to pull out faster from last year’s downturn. Analysts expect the private airlines to post robust growth this fiscal with the airline business growing over 22 per cent.
Jet reported a total income of Rs 2,965 crore. In the corresponding quarter of the last year, it had suffered a net loss of Rs 225.3 crore on a much lower income from operations of Rs 2,398 crore. Jet has clocked three straight quarters of profits though profit in the first quarter is lower than the previous two quarters. The airline’s net profit was Rs 58 crore in the three months ended March 31 and Rs 100 crore in the preceding quarter.
“I am a little disappointed by Jet’s performance. I expected them to post a net profit of at least $7-8 million as this has been a phenomenal three months for them,” said Kapil Kaul, CEO of the Centre for Asia Pacific Aviation.
Kingfisher Airlines Booking total revenues stood at Rs 1,685 crore in the first quarter against Rs 1,398 crore in the year-ago period.
Analysts attributed three reasons for the contrasting fortunes of the two rivals.
“Jet launched its international operations in 2005 and has done very well recently. Kingfisher Airlines Booking only bolstered its global presence in March and still has to catch up,” Kaul said.
Kingfisher is also saddled with high interest payouts that translate into a structural burden, said an analyst with a Mumbai-based brokerage. The third reason for the lower income and profit posted by Kingfisher is the size of their respective fleets.While Jet Airways has 89 aircraft, Kingfisher has 66 planes.
“Till that is sorted out, the airline will suffer,” he added. Kingfisher paid out interest of Rs 321 in the first quarter of this year compared with Rs 212 crore in the corresponding quarter of the last year.
Jet’s interest burden was not insignificant either. The airline recorded interest and finance charges of Rs 274 crore in the three months ended June 30.
The third reason for the lower income and profit posted by Kingfisher compared to Jet is the size of the respective fleets of the two rival airlines. While Jet Airways has a fleet of 89 aircraft, Kingfisher has 66 planes.
Kaul, however, expects Kingfisher to be back in the black by the end of the current fiscal as its domestic operations gain traction and its international routes stabilise.
