Jet Airways reports healthy Q1 profit

Jet Airways Group has announced its fifth successive profitable quarter for the period ending June 30, 2016, based on continuing improvement in aircraft utilisation, increased efficiency and reduction in cost, including non-fuel expenses.

Consistent financial performance has enabled Jet Airways to further reduce its debt by US$53 million during Q1 of FY17.

Cost per available seat kilometre (CASK) excluding fuel dropped by 1.2% to US cents 4.77 in Q1 FY17 compared to US cents 5.09 in the corresponding period of the previous year, clearly indicating Jet Airways’ focused approach in achieving operational efficiencies throughout its business.

The company reported a net profit of US$19 million in Q1 of FY17 compared to US$36 million in the corresponding period of the previous year. The net profit of Q1 FY16 included an exceptional item on account of contribution receivable from lessors.

Naresh Goyal, chairman, Jet Airways, said: “Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel cost in spite of inflationary increases and weakening of Indian Rupee against US Dollar by almost 6%.

“Due to the intense competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue in Q2.

“At Jet Airways, we continue to focus on our key priorities areas of customer satisfaction, network optimisation and driving operational efficiencies.

“Our strategic partnership with Etihad Airways continues to strengthen. In Q1, codeshare traffic delivered by Etihad Airways and other Etihad Airways Partner airlines to Jet Airways grew by 41%.

“As a network carrier, we have been able to drive greater integration between domestic and international operations providing enhanced connectivity to our guests throughout the Jet Airways network.”