Jet Airways Group turns to Q2 profit

HE HINDU,29OCT2015

Jet Airways Group reported net profit of Rs.83 crore for the second quarter ended September 30, as compared to net loss of Rs.42.8 crore in the same period last year.

This is the airline group’s second consecutive profitable quarter in the current financial year and a profitable second quarter after a gap of eight years, Jet Airways, in which Etihad Airways owns 24 per cent stake, said.

Jet Airways group comprises Jet Airways and JetLite whose merger process with the former is on.

On a standalone basis, Jet Airways reported net profit of Rs.87.59 crore in the second quarter against profit of Rs.70 crore a year earlier.

“The Indian domestic aviation market is witnessing robust growth with traffic growing by 20 per cent. Jet Airways is committed to contributing to this growth by providing enhanced connectivity and a full-service travel experience to our guests. Our financial performance in the second quarter clearly demonstrates that our efforts are showing positive results,” Naresh Goyal, Chairman, Jet Airways said in a statement.

Jet Group’s total revenue for the second quarter increased by 8.1 per cent to Rs.5,504 crore from Rs.5,092 crore in the same period last year. Passenger revenues rose by 9.5 per cent to Rs.4,682 crore from Rs.4,277 crore in the same period last year.

Jet Group’s domestic capacity grew by 16.6 per cent last quarter while passenger numbers grew 34.5 per cent which were much higher than the industry growth, the airline said.

At the same time, in the international business the airline registered a 6.6 per cent growth in capacity and a 9.7 per cent growth in passengers.

“This improvement is largely the result of optimizing the network to enable tighter integration between domestic and international networks, enhanced synergies with partner carriers and improved operational performance,” Jet Airways said.

“It is encouraging to report a profit in the second quarter, which is traditionally a lean season for the aviation sector,” Cramer Ball, Chief Executive Officer, Jet Airways said.

“While the robust competition in the Indian aviation sector continues to put pressure on yields, we have continued to make progress by focusing on improving operational efficiency,” he added.

“The growth in passengers flown and the improved aircraft utilisation have been significant contributors to the performance in the second quarter,” Mr. Ball said.