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Jet Airways swings to profit ahead of potential Etihad deal

Press Trust of India
Feb 01, 2013 at 05:47pm IST

Mumbai: Jet Airways on February 1 reported a net profit of Rs 85 crore for the quarter ended in December 2012. The Naresh Goyal-owned company had reported a net loss of Rs 101.22 crore in the October-December quarter ended on December 31, 2011, Jet Airways said in a filing to the BSE.

Total income from operations rose to Rs 4,205.77 crore in the October-December quarter ended in 2012 from Rs 3,939.16 crore in the year-ago period. Shares of the company were trading at Rs 621.55, down 0.09 per cent on the BSE.

Meanwhile, ahead of finalising Etihad's deal to acquire 24 per cent stake in Jet Airways, top brass of the two carriers on February 1 met Finance Minister P Chidambaram and are understood to have discussed regulatory requirements.

Jet Airways posts Rs 85 cr net profit in Q3

Total income from operations rose to Rs 4,205.77 crore in the October-December quarter ended in 2012.

The two airlines are likely to clinch the deal soon and apply for approval of the stake sale deal to the Foreign Investment Promotion Board (FIPB) of the Finance Ministry. Speculation is rife that the deal would be firmed up in the next ten days. Etihad is likely to buy 24 per cent equity in Jet Airways valued at about Rs 1,800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.

Jet Airways attributed the good numbers to stable fares and lower cost on fuel, which constitutes over 40 per cent of the operational expenses of an airline, the BSE filing added. Jet is the second airline to report profit this quarter after a good show by low-cost carrier SpiceJet with a Rs 102 crore against a net loss of Rs 39.3 crore a year ago.

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