Jet registers highest ever quarterly profit
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Jet Airways posted its highest ever quarterly profit in the final three months of the 2015 calendar year.
For the quarter ending 31 December 2015, the Mumbai-based airline generated a profit of INR4.67 billion (US$68.6 million), more than 1,500% higher than the INR290m it generated in the same period the previous year. This also marked Jet’s third consecutive profitable quarter.
Jet attributed the strong performance to India’s fast-growing aviation sector and its own turnaround strategy.
“Jet Airways is rightly placed to participate in the fast growth in India’s aviation sector driven by the country’s strong economic fundamentals,” said Naresh Goyal, Jet’s chairman. “The record profit and overall strong financial performance in this fiscal is a result of several initiatives undertaken for improving productivity and efficiency.”
Jet’s revenues increased 4.9% in the quarter to INR57.02bn, 85% of which were passenger revenues. This was driven by a 15% surge in domestic passenger traffic and a 5.1% increase in international traffic. The airline’s non-fuel costs were reduced by 4.6%.
The airline also said its partnership with Etihad was paying dividends. Overall codeshare traffic (with all airlines) jumped 28% to more than 530,000 passengers in the quarter, while codeshare traffic with Etihad increased 86%.
“We are very satisfied with the operating and financial performance of Jet Airways that has resulted in record profits. We remain committed to providing solid support and driving further synergies between the two partners,” said James Hogan, vice chairman of Jet Airways and president & CEO of Etihad.
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