The cost of fuel is is eating into Jetstar Asia¡¯s profits, according to financial reports, which found an 80 percent drop in the airline¡¯s profit due to higher oil bills and competition.
Profit reports lodged by Singaporean regulators revealed Jetstar Asia¡¯s profit of S$4.37 million for the 12 months ending June 2012 were down from S$22.47 million, The Sydney Morning Herald reported.
Although dubbed by Qantas to be one of its most profitable businesses, the airline has accumulated losses standing at S$67 million in 30 June 2012.
In the same period, the airline¡¯s fuel bill went up from S$128 million previously to S$214 million and its operating costs increased 29 percent.
Meanwhile, over the year, competition in the region also increased, with the introduction of the low-cost carrier, Scoot Airlines.
Owning up to 49 percent of the company, Jetstar Asia is one of Qantas¡¯ biggest investments in the LCC market.
Thursday, January 17, 2013
Fuel leaking out of Jetstar Asia¡¯s profits
Source = e-Travel Blackboard: N.J