Jet returns to profit in Q1
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Jet Airways returned profit in the first quarter of its 2015-16 financial year.
The Mumbai-based carrier generated a net profit of INR2.26 billion (US$34.7 million) for the three months to 30 June 2015, compared to a net loss of INR2.58bn in the same period last year.
The airline’s total revenue increased 11% to INR56.58bn, including a 10.4% rise in passenger revenues, to INR47.07bn.
Naresh Goyal, chairman of Jet Airways said the results were evidence of the success of the airline’s three-year turnaround programme.
“Our performance in the first quarter of this financial year demonstrates once again that the measures we are taking to bring the business back to profitability are having the desired result,” said Goyal.
“All the major key performance indicators have shown progress as we continue to focus on customer satisfaction, network enhancement and improvement through efficiency.”
Jet carried a total of 6.29m passengers in the three-month period, up 21.3% year-on-year. Average load factors increased 2.2 percentage points to 80.2%. Jet’s domestic passenger traffic climbed 25.4%, while international traffic rose 12.4%.
“Despite the increasingly competitive domestic landscape driven by aggressive new market entrants, our market share in India went up by 1.1 percentage points to 21.9 %. This means that one in every five domestic passengers flew on Jet Airways,” said Cramer Ball, Jet’s CEO. “This is a strong endorsement of our single brand full-service product.
“The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields and costs. In addressing these, we continue to focus on leveraging the commercial and operational synergies through our partnership with Etihad Airways,” Ball added.
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