Jet Airways Q3FY18 Concall Summary

Jet Airways.png

Financial Highlights

Jet Airways Q3FY18 Financials.png
  • 11th consecutive profitable quarter
  • Net profit of Rs. 186 Crores at a consolidated level.
  • The company reported a profit of Rs. 315 Cr for 9MFY18
  • The total RASK or Revenue per Available Seat Kilometre at Rs. 4.28 compare to Rs. 4.22 in the same period last year with an increase of 1.4% YoY.
  • CASK increase to Rs. 4.33 for Q3FY18 as compared to Rs. 4.22 for Q3FY17
  • CASK (Overall cost unit) increased to Rs  4.33 compared in Q3FY18 to 4.22 in Q3FY17
  • FX gains and losses have not been calculated or considered for CASK calculation
  • CASK excluding fuel fell by 2.6% to Rs. 3.02 against Rs. 3.10 in the Q3FY17
  • The firm adopted Indian Accounting Standards (IndAS) in previous quarter.
  • EBIT is Rs 186 Cr as against 299 Crores last year. This includes profit on sale and leaseback of aircraft amounting to Rs 327 Cr
  • PAT is Rs 186 Cr versus Q3FY17 PAT of Rs 299 Cr
  • Profit for 9MFY18 was Rs 315 Crores as compared to 863 Crores in 9MFY17, this profit includes 518 Crores from sale and leaseback of aircrafts.
  • Gross revenue increased by 10.2 YoY to 6,412 from 5,817 Crores in Q3FY2017.
  • EBITDA was 1,186 Crores as compared to 1,302 Crores last year.
  • EBITDA for 9MFY18 was 3,200 Crores compared to 3,860 Crores for the same period last year.
  • ASKMs grew by 9.7% YoY.
  • 170 Crores on depreciation
  • On 31st December 2017The gross debt on the balance sheet stood at 8,430 Crores
  • Of the total debt, aircraft debt stands at 2,214 Crores.
  • 71% of the total debt is denominated in US dollars.
  • The net debt as on 31st December, 2017 stood at 7,925 Crores, an increase of 40 Crores over September 2017
  • The increase of loans was attributed to :
  1. seasonal working capital  fluctuation
  2. Drawdown of close to 225 Crores towards the BKC property which the firm  acquired this year
  • In cargo business the firm  had almost 30% increase in the tonnage and 40% increase for the first 9 months
  • Other income reported has gone up by 145 Crores

Macro-Environment

  • Brent rate increased by 21% in the quarter to US $58.50 per barrel compared to US $48.50 per barrel in the same period last year
  • The Gulf market continues to remain weak
  • Yields continue to be under pressure

Operations Update 

  • Available Seat Kilometres or ASKs increased by 8.7% QoQ to 15 billion, the primary reasons behind this are:
  1. Full period impact of the 777 aircraft that came back only in December of 2016
  2. The firm Added five 737 aircraft
  • Passenger traffic increased by 13.4% YoY totalling to 7.7 million passengers this quarter.
  • Loyalty programme; Jet Privilege; is the largest loyalty scheme of its kind in India
  • Jet Privilege has won nine awards in various categories at the Customer Loyalty Award and Customer Experience Awards at the Customer Fest Show 2018. The awards were:
  1. Best Use of Contests/Promotions in a Loyalty Program
  2. Best Use of Data Analytics in Predictive Modelling
  3. Best Customer Experience awards of the year in banking.
  • The firm not satisfied with its time performance and it’s taking actions for the same.
  • Total capacity domestic and international put together in terms of seats grew by 6.8%,
  • Overall seat factor of 84% in this quarter compared to 79.6% in previous quarter, with a growth of 4.4 points YoY.
  • Carried passengers 6.12 million passengers in Q3FY17 and 6.99 million in Q3FY18 an increase of 14.3%.
  • The firm carried 6.99 million compared to 6.12 Million last year with growth of 14.3% YoY.
  • Increased corporate segment from 33%, 34% to 47%, 48% in the domestic
  • Close to 17% is the Gulf ASKs out of total ASKs
  • The total aircraft count of the firm is  117 :
  1. 16 is owned by the firm
  2. 101 are on an operating lease

Domestic Operations

  • Carried 5.5 million passengers with 16.7% growth YoY.
  • Domestic revenues to the total revenues were 44.8% in the quarter
  • ASKMs during the quarter went up by 16.9%.
  • Total domestic revenues were 2,729 Crores, up by 14.5% as compared to Q3FY17
  • Passenger revenue from domestic operations increased by 15.5% to 2,386 Crores.
  • Domestic load  at 85.4%, which reflects an increase of 4.7 points compared to Q3FY17
  • Domestic revenue per passenger has declined by around 4%.

International Operations

  • Carried 2.17 million passengers, a growth of close to 6% YoY.
  • International revenue accounted for 52% of total revenue
  • ASKM grew by 6.1% compared to Q3 of last year
  • Passenger revenues from international operations increased by 9.3% to 2,853 Crores
  • Seat factor in the international markets stood at 83% an increase of 3.7 points.
  • Revenue per passenger has increased by around 2.5%.

CS-UDAN Schemed of Government

  • The firm participated in the second round of bidding of the scheme
  • The firm has been awarded the following routes
  1. Delhi to Nashik ( The firm will fly on 737’s)
  2. Lucknow to Patna( The firm will fly on ATR)
  3. Nagpur-Allahabad-Indore( The firm will fly on ATR’s)
  4. Lucknow-Bareilly-Delhi( The firm will fly on ATR’s)

Downloads