Low air-fares jeopardise Jet Airways' Q1FY17

Jet Airways, the Mumbai based passenger carrier on Aug 12 has post market hours declared its Q1FY17 results. Company has posted disappointing results in Q1, which have been hampered by a dip in net profits.  Net profits in Q1FY17 have plunged by 53.47 and stand at Rs 103.14 crores as compared to Q1FY16. Total revenue stands at Rs 4689.87 crores, which fell by 2.99 per cent as compared to Q1FY16. Revenue from the domestic sector has declined by 99.04 per cent y-o-y to Rs 2,104.70 crore. The same from the international routes remained flat at Rs 2, 198.22 crore. In Q1FY17, fuel expenses of the company stand at Rs 156.48 crore, which have declined by 20 per cent as compared to Q1FY16. On the other hand, aircraft maintenance cost has dipped by 15.9 per cent  to Rs 491.71 crore in Q1FY17, and rentals for the aircraft have increased by 5.5 per cent during the same time.

Shares of the company on Aug 12 closed at Rs 541.45, down by 1.01 per cent. In the last 5 days, shares have dwindled by 10 per cent. 52 weeks' High/Low of the company stands at Rs 796/284. Stock will definitely react to the results when the market re-opens on Aug 16.

Jet Airways is an airline based in Mumbai, India. As of February 2016, it is the second largest airline in India after IndiGo with a 21.2 per cent passenger market share. Incorporated in April 1992 as a limited liability company, the airline began operations as an air taxi operator in 1993. It began full-fledged operations in 1995 with international flights added in 2004.