Jet Airways posts record quarterly net profit

Jet Airways
Representational Image

Jet Airways has informed that its December quarter net profit rose more than seven times, with sharply lower fuel costs. This has helped the carrier post a third consecutive quarterly gain following a series of losses.

If you take the market share Jet is India’s largest market share. The October-December period rose to 4.6 billion rupees ($68.88 million) from 631.1 million rupees a year earlier, marking a record his quarterly profit.
The airline’s fuel expenses dropped by 27 percent in the period, its fiscal third quarter. Total income from operations grew by 8 percent to 54.44 billion rupees aided by a 20 percent surge in passenger traffic, the company informed in a statement.

“Our strong operational performance resulting in record profit demonstrates the progress we continue to make in our turnaround plan,” CEO Cramer Ball said in a statement.

It is surprising fact that even after the rapid rise in demand for air travel in India, Jet, which is 24 percent owned by Abu Dhabi’s Etihad, has not made an annual profit since 2007, dragged into the red by high operating costs and fierce competition for passengers fares.
Enthused by the earnings prospects, InterGlobe Aviation Ltd, owner of Indian budget airline IndiGo, in November raised 30.1 billion rupees through an initial public offering of shares, valuing the carrier at around $4 billion.
“The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields. In addressing these, we will focus on cost reduction and leveraging the commercial and operational synergies through our partnership with Etihad Airways,” Ball said.
The company was recently in the news when it suspended its cabin crew who had allowed singer Sonu Nigam to sing songs over the PS system.

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