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Jet Airways Profit Falls For Second Straight Quarter

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Jet Airways Ltd.’s profit fell for the second straight quarter due to higher fuel expenses.

Net profit decreased 46 percent year-on-year to Rs 165.2 crore in the October-December quarter, Jet Airways said in a stock exchange filing. The compares with the Bloomberg consensus estimate of Rs 181.3 crore. The bottom line was hit by fuel expenses which has increased 28.7 percent to Rs 1,840.08 crore during the quarter.

Revenue increased 10 percent to Rs 6,086.2 crore as compared to the same quarter last year. This too fell short of the Rs 6506.55 crore estimated.

Operating income of India’s second-largest airline rose 3 percent to Rs 865 crore. Operating margin narrowed 100 basis points to 14.2 percent.

In December, Jet Airways, along with IndiGo and SpiceJet Ltd. have submitted bids under the regional connectivity scheme’s second round of bidding; wherein the government has received 141 initial proposals.

Ahead of the earnings announcement, shares fell 2.17 percent on the BSE. Shares rose nearly 73 percent during the quarter.

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