Jet Airways dips 94 per cent to Rs 28 crore

The despite of 22 per cent growth in revenue to Rs 7,400 crore, and its international operations becoming profitable in the last quarter, as the Jet Airways reported a 93.81 per cent dip in its net profit to Rs 28 crore for the year ended March 31, 2007. This report was on Tuesday.

The airline would have reported a net loss of Rs 183 crore but for the profit of Rs 211.07 crore ($48 million) it earned through the sale and leaseback of four Boeing aircraft. Jet posted pre-tax losses of around $40 million, or Rs 174 crore, on its international operations.

The air lines make distributions of the sale and leaseback to the benefits of the demonstration or lower losses. They reserve to benefits leveraging the difference between the commercial value of the airplane and its countable value. The budgetary exercise also passed, the jet made $60 million with this method.

Net profit for the quarter ended March 2007 declined to 61.23 per cent to Rs 88 crore despite a 23.2 per cent increase in operating revenue to Rs 1,978 crore. But the results were better than the previous three quarters during which the airline had totted up losses of Rs 60 crore, due to its new international operations.

But this could be short-lived as Jet plans to soon add new routes and start flying to the US, Canada and the Middle East. The Jet Airways domestic operations have remained profitable despite a bloodbath in the market. In fact, Jet Airways has planned to improve the yields by 5 per cent to Rs 5,500.

Read the news release about this article's at Hindustan Times by Ranju Sarkar